Week 7 Cafe Europa

This week (February 5-12), some important things happened. BizCafe added three different cup sizes to our coffee options. Also, we gained access to a more detailed analysis of our comparative rankings. For the sake of privacy, I won't disclose specific information about that new data, but I will review what it means to Cafe Europa. As for my decisions this week:

Management Decisions:

• 2 servers quit this week! This is the first time this has happened to me. I have decided to hire 2 more servers to keep 12 servers on the payroll. This makes my total manager wages, server wages, and employee cost the same as it has been for awhile now.

Marketing Decisions:

• We have 3 sizes now! Small, Medium, and Large.
• I decided to set my prices at $2.40, $3.20, and $4.00 (respectively).
• I kept the same General Awareness Advertisement, which costs me $1400 per week.

Operations Decisions:

• I needed to purchase Small and Large logo cups, so I purchased 10,000 of each. I bought the Small cups for $0.07 each and the Large cups for $0.09 each. I only bought 10,000 because I realize we are a little more than halfway through the simulation, and I have currently used almost 10,000 Medium cups (which have been the only option for customers so far...)
• My coffee purchase for last week was just right! I bought 63 lbs. of high quality last week, and I increased to 64 lbs. week just to be safe.
• I am keeping the same hours for the cafe.

Service Capacity

• My service capacity increased this week! 
• M-F: 390 (up from 375 last week)
• Sat: 416 (up from 400)
• Sun: 364 (up from 350)

Checkbook

• As of last week at this time (February 5th), my balance was $9,703.44
• On February 12th, my balance is $10,958.07. This is huge. My balance has steadily decreased for a few weeks now, but this week it actually increased. This may be due to those 2 servers quitting though....

Income Statement

• Nothing has changed here. The numbers I got last week were for the previous month. I will get another statement at the end of this month.

Comparative Results

• Not everyone in the class has completed this period, but as of right now I rank 2nd in Revenue Value, 3rd in Revenue (Cumulative) Value, 3rd in Cups Sold Value, and 2nd in Customer Satisfaction.
• According to the new data available in the spreadsheet, Cafe Europa is doing very well. Its rankings are average in some categories and well above average in some categories. I'm not sure what the Balanced Scorecard Value and Rank are, and I'm also not sure why the Customer Satisfaction level as well as the Net Income numbers are different from what I see in BizCafe. I'm sure it will all make sense to me eventually.

Thus ends another week of Cafe Europa.

Until next time,

Madeleine