Group report subject service management topic customers flow of cong coffee

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UNIVERSITY OF ECONOMICSDA NANG UNIVERSITY

GROUP REPORT

SUBJECT: SERVICE MANAGEMENT

TOPIC: CUSTOMERS FLOW OF CONG COFFEE

Vo Thi Thuy Nhi

Pham Phan Minh Phuong Tran Khanh Linh

Bui Thi Han Ny Huynh Thi Le Ha

Da Nang, March 31, 2024

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TABLE OF CONTENTS

I. The firm’s profile...2

1.Development history...2

2.Target market and service portfolio...4

3.The firm’s positioning...6

4.Some features of the firm’s services...7

II.Analyze Cong’s customer flow...9

1.Stages a typical customer has to go through from entering the store to leaving the store...9

2.Analysis of facilities and staff that Cong provides...10

3.Detect bottleneck...14

4.Make suggestions for improvement...16

INTRODUCTION

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I. The firm’s profile1. Development history

The story of “Cong” began in 2007. The first shop of the franchise was a small café, situated on Trieu Viet Vuong street – the historic café street of Hanoi.

Cong’s founder Linh Dung, donned a fresh new attire for her establishment. It was at that very moment that Cong Coffee came into existence, simply inspired by the first letters of the country's official name: CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM (The Socialist Republic of Vietnam).

Cong’s founder, Linh Dung wanted to bring the rustic and romantic spirit from her childhood memories into Cong. In 2007, at the time when most Hanoian cafés did not pay attention to their design, Linh Dung believed that: Cong needed a story of its own. From the foods and drinks to the unique menu presentation; from the interior design, paint color choice to even the furniture design and decorations; all were done by herself. CONG’s mission is to arouse imagination and bring our customers unique emotional

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experiences of Vietnam. They are relentlessly pushing their creativities with a desire to bring Cong to the global community, spreading a unique inspiration with the creativity and heart of every single team member.

To this day, Cong has opened 58 stores all over Vietnam, and 7 stores internationally (Korea and Malaysia), welcoming thousands of customers every day.

“Cong more, Cong forever”, they want to inspire distinct imagination by creativity and the heart of each member.

They want to bring Cong to the global community. To this day, Cong has opened 58 stores all over Vietnam, and 7 stores internationally (Korea and Malaysia). In Da Nang, Cong Cafe has 3 branches. Cong Coffee Ly Tu Trong is one of the first branches of the famous Cong Coffee chain in Vietnam. The store opened in 2014, located on busy Ly Tu Trong street, right in the center of Da Nang city.

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Some information about Cong Coffee Ly Tu Trong:

- Address: 23 Ly Tu Trong, Hai Chau District, Da Nang

- Opening hours: 7am - 11:30 pm - Price: Average Style: Nostalgic - Highlights: Unique space,

delicious drinks, enthusiastic service staff

 Success: Cong Coffee Ly Tu Trong has contributed to creating the famous Cong Coffee brand nationwide. The shop has received many awards such as "Top 10 most popular coffee brands in Vietnam" and "Top 50 most beautiful coffee shops in Asia".

2. Target market and service portfolio

Target market: The Cong Cafe is located at 23 Ly Tu Trong, Hai Chau district,

Danang, which is a central location and easily accessible. Therefore, its target market could be:

- Tourists: This is a popular place for tourists to come thanks to its unique atmosphere and central location. It offers a variety of Vietnamese coffee and snacks, making it a great place to experience Vietnamese coffee drinking culture.

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- Locals: This place is also popular with locals thanks to its comfortable atmosphere and affordable price, especially for young adults and students who want to meet up with friends, work and study, socialize, or simply relax and enjoy a cup of coffee.

Service portfolio: The Cong Cafe located at 23 Ly Tu Trong, Hai Chau district,

Danang offers some services including:

Primary core service: This consists of many types of beverages (Vietnamese coffee -hot/cold, Vietnamese iced tea, fruit teas, soft drinks and juice, etc.)

- Secondary core service: Food (sticky rice, spring rolls, banh mi, creme caramel, sweet bread, etc.)

 Auxiliary service: Facilitating service includes water, electricity, information (price, open hours, confirmation of reservations), order-taking (through applications, in person, or reservations and check-in), billing, payments, etc.  Adding value service includes hospitality (greeting, toilets, waiting facilities,

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security), safe-keeping (child care, pet care, parking place), exceptions (children’s needs, dietary requirements, medical needs, complaints), etc.

3. The firm’s positioning

Cong has become familiar in the minds of customers. Cong not only provides delicious and quality coffee but also a unique taste, combined with excellent service.

The chain takes pride in serving high-quality coffee made from locally sourced beans. They often use traditional brewing methods like the phin filter to preserve the rich flavors of Vietnamese coffee.

Cong Cafe emphasizes its roots in Vietnamese coffee culture. From the design to the menu offerings, the brand aims to provide an authentic Vietnamese coffee experience.

Born in 2007, when Vietnamese society was gradually transforming towards the trend of modernization, Cong Cafe keenly grasped a very "expensive" insight of consumers: amidst the hustle and bustle of modern life, in a hurry, people always tend to look for old things that bring many memories. Therefore, Cong Cafe wears the mantle of a subsidized Vietnamese society for its nearly 60 stores. Older people come here as a place to reminisce about their childhood, while young people come to experience the

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lives of their parents, siblings, and older people. Specifically, Cong Cafe focuses on the "nostalgic" version.

Cong still maintains a specific design style and maintains distinct characteristics, creating a difference in the modern form of life. It can be said that Cong Coffee proudly wears the mantle of Vietnam's colonial era, becoming a special destination with nearly 60 stores nationwide.

Positioning Map:

Some features of the firm’s services

- Unique cafe experience: CỘNG cafe might be known for its unique atmosphere or design elements.

- Specialty coffee: They might

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offer specialty coffee drinks or brewing methods.

- Locally sourced ingredients: The cafe might use locally sourced ingredients in their drinks and food.

- Focus on Vietnamese coffee: They might have a focus on traditional Vietnamese coffee or other Vietnamese beverages (filter coffee, iced milk coffee, coconut coffee).

- Variety of food options: They might offer a variety of food options, such as pastries, snacks, or light meals.

- Free Wi-Fi: Many cafes offer free Wi-Fi for customers.

- Comfortable seating: Look for reviews that mention comfortable seating or a relaxing atmosphere.

- Enjoy nostalgic coffee: Cong Coffee takes you back to old Hanoi with a bold atmosphere of the 70s.

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II. Analyze Cong’s customer flow

1. Stages a typical customer has to go through from entering the store to leaving

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 At the second floor: 19 customers and 2 staffs

2. Analysis of facilities and staff that Cong providesa. The Infrastructure and equipment

Cong Coffee is famous for its nostalgic style, recreating the image of Vietnam in the

years 1975-1986. The Infrastructure and equipment here are also carefully selected

to match the general style of the store.

Infrastructure- Seating area:

 Indoors: The store has two floors with many different seating areas, including simple wooden tables and chairs, flat tables and chairs, and sofa areas. The shop uses simple, rustic wooden tables and chairs, reminiscent of popular subsidy-era cafes. There is a bar area for customers to order and pay.

 Display area for Cong Coffee products such as coffee, coffee filters, cups, t-shirts…

 Outdoors: The shop has a small outdoor area with a few tables and chairs placed under the trees.

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- Decorate: The shop is decorated with nostalgic objects from the subsidy era such as

radios, televisions, bicycles, typewriters, etc. The shop is decorated with old objects

such as radios, televisions, bicycles, typewriters, flags, propaganda photos... creating a nostalgic and unique space. This is a special attraction that satisfies the check-in and virtual living needs of young customers in particular and modern people who use social networks to spread their own experiences.

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- Lighting: The shop uses warm yellow

light, creating a feeling of closeness and friendliness. And this light helps customers immerse themselves in a relaxing space, feel less rushed, increase the feeling of nostalgia and immerse themselves in a slower pace of life than the hustle and bustle of the world outside. This increases the customer's Zone of Tolerance, avoids having to rush, is more patient, and is more accepting when unfortunately falling into the situation of waiting for food.

- Facilities: The shop has free wifi, air conditioning, and clean restrooms.

Equipment and Machinery

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- Coffee machines: Approximately 3-4 machines, used to make phin coffee and other

types of coffee. The shop uses traditional phin coffee machines, which deliver a strong and authentic Vietnamese coffee flavor.

- Blenders: Approximately 2-3 machines, used to blend fruits for smoothies. The shop

uses high-ower blenders to blend various fruits, creating delicious and nutritious smoothies.

- Refrigerators: The shop uses refrigerators to store soft drinks, milk, beer, etc.

- Other equipment: The shop may also have other equipment such as ice machines,

water dispensers, etc.

Overall, the facilities and equipment at Cong Caphe are simple but still suitable for the shop's nostalgic style. The enthusiastic and attentive staff also contribute to creating a good experience for customers when they come here.

 Evaluate facilities against customer needs

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AreasEvaluate the level of meeting customer needs.

The first floor: About 105 seats

The first floor area is airy, spacious with many rows of simple wooden tables and chairs. The first floor area is suitable for large groups of guests because the round table layout accommodates 10-12 people and the benches accommodate 15-18 people. The first floor area is also arranged with little separation but mainly a large and common space along with many virtual living corners with separate decorations in each corner to suit the criteria of taking photos and saving photos. Beautiful photos when arriving at the restaurant.

The second floor: About 75 seats

The second floor area is more quiet and divided than the first floor. The layout creates each zone: high wooden chair area, low sofa area and each table usually accommodates groups of 4-6 people. This area meets the need for a private and quiet space for working people and students to study.

The outdoor area: About 30 seats

The outdoor area is located right at the front and sidewalk of the restaurant on the ground floor, suitable for groups and individuals who want to be comfortable and close to nature and outdoor space. This area sometimes limits customer comfort because it is close to traffic, which drowns out customers' conversations and equipment sounds, as well as dust and smoke that easily hinders the experience when coming to the restaurant.

b. Staff- Baristas:

 Responsible for preparing coffee, tea, smoothies, fruit juices, etc. according to the shop's recipes and procedures.

 Ensure the quality of drinks is delicious and visually appealing.

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 Clean and sanitize bar equipment after use.

- Servers:

 Welcome customers, introduce the menu, and advise customers on choosing suitable drinks.

 Take orders and serve drinks to customers.  Clear tables and clean the surrounding area.

- Cashiers:

 Collect payments from customers.

 Print invoices and keep accurate records.  Report revenue to the store manager.

- Security Guard:

 Ensure the security and order of the shop.  Manage the parking area.

ActivityDescriptionCycle time, sec

 Assist customers when needed.

- Store manager:

 Lead and manage the operations of the shop.  Ensure the quality of the shop's services.

 Resolve any issues that arise during the shop's operations.

3. Detect bottleneck

Out

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*: Bottleneck

Direct labor utilization = (Process cycle time)x(Number of workers/areas)Total direct labor content

 DLU = 20+23+30+90+30+2090 x 6 x100 = 39,4%  The maximum service capacity per hour: 40

Propose a reallocation of activities to improve DLU: Increase two staff in activity 4

 DLU’ = 20+23+30+30+30+2030 x 6 x100 = 85%

 The maximum service capacity per hour after reallocate: 120

4. Make suggestions for improvement

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 Restroom: We need to have a clear division between male and female areas, because many customers are confused between these two areas when they need to use the restroom.

 Parking lot: Currently, the store does not have a proper parking lot area for customers, during rush hours customers may have difficulty in parking or finding a place to park their vehicles.

- Spatial layout:

 Table and chair arrangement: We should recalculate the numbers of each equipment and the arrangement of them for each area, since the space is pretty limited and the seating area takes a lot of moving space.

 Outside seating: Considering adding sunshade for these areas, because these places are not used when it rains or way too sunny, which may even cost more to do the maintenance.

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