Having presented and analyzed both my primary and secondary data, I will now be evaluating the main purpose of my coursework which is whether or not it would be a sound business decision to locate a Coffee Republic Franchise in Finchley Central. There are many factors of location that influence locating a Coffee Republic Franchise in Finchley Central some of which include:
Transportation and communication links – This would definitely be considered when deciding whether Finchley Central is a good location for locating a Coffee Republic Franchise. Transportation links play a significant role in the success of a business as poor transportation links could result in suppliers not being able to deliver goods efficiently and easily which could also increase the costs of the business. Also, potential customers may not be able to find the store easily if there isn’t any transport links connecting Coffee Republic to the rest of Finchley Central. The area is well connected to the rest of London as it is situated near the M25 and North Circular.
As well as this Finchley Central is centrally located adjacent to the underground and there is access several bus stops allowing there to be easier access for both customers and for Coffee Republic’s suppliers. Furthermore, good communication is also very important for Coffee Republic, if they want to communicate with the franchisor, if there are any issues concerning the running of the franchise. They would need to stay in contact with suppliers, to keep track of stock when it is being delivered. Finchley Central would be a good location in terms of the transport and communication links that area available.
Finally, Coffee Republic will need to provide internet connectivity to the potential customers who would like to have the added luxury of internet access, alongside their coffee or other beverage. The communication links within Finchley Central are also of high quality as they have very reliable internet and phone access. A problem that may be caused because of the location may be the high volumes of traffic passing through each day which links onto the main roads and motorways which possibly can make it harder for potential customers travelling to Coffee Republic and for stock deliveries to be efficient and on time, as a lot of traffic could cause late stock deliveries, which in the long term, can bring about stock shortages.
Location of Market – This is one of the very important factors in deciding whether or not Finchley Central is a suitable location for locating a Coffee Republic Franchise. The location of Finchley Central has very few branded coffee shops; all of the competitions in Finchley Central are all very small, unbranded local cafï¿½’s, which will mean that Coffee Republic will be able to dominate the espresso and catering market due to their very reputable name. This would then increase their market share as they continually wipe out competition. Additionally, due to the fact that Finchley Central has a very affluent society, Coffee Republic’s customer base would also increase, as they are very near to the possible location of Coffee Republic, as they could be able to gather customers from the offices nearby and from the Tesco’s.
The Coffee Republic franchise would be able to eliminate any small scale competition through high quality products and service of an excellent quality which make them unique from the rest of the market; by combining these two factors with a reasonable pricing strategy, Coffee Republic can ensure a profit from their work, which would make it a sound business decision to locate in Finchley Central.
Supply of Labour – The supply of labour is an important factor whilst considering locating a Coffee Republic Franchise in Finchley Central. When branded coffee shops like Coffee Republic are setting up a store in a new area, they are looking to find a good quality labour supply. They would usually be able to obtain this labour supply from schools and colleges, to then hire their students, as this is a very efficient way to gain staff for cheap. Employers would be willing to give students a placement there and possible student workers would want to work there also.
Land use – Existing businesses in the area are already attracting a vast amount of customers to Finchley Central. This would perhaps allow for Coffee Republic to undergo a joint venture with Tesco’s; if you show Coffee Republic a Tesco’s receipt, you can get half price coffee, therefore, both businesses win. Offices already in the area mean that Coffee Republic have the ability to target office workers/ builders who will have a lot of disposable income which they could spend at Coffee Republic.