Project a “better version” of the cups coffee subject service operation management

Introduction to the business The Cups Coffee is the first coffee shop branded coffee chain of Da Nang people invested, built and managed by Vietart F&B Co., Ltd.. The Cups Coffee provid

THE UNIVERSITY OF DA NANG UNIVERSITY OF ECONOMICS

🙠🙠🕮🙢🙢

PROJECT: A “BETTER VERSION” OF

THE CUPS COFFEE

Subject: SERVICE OPERATION MANAGEMENT Teacher: Nguyen Thi Ngoc Ly

Class: 46K23.1 Student: Vo Le Nhu Minh Doan Gia Han

Dao Thi Thu Phuong

Lam Thi Thu Phuong

Tang Thi Giang

Nguyen Thi Hong Oanh

Da Nang, 7 th May, 2022

MỤC LỤC

1 Overview of The Cups Coffee 3

1.1 Introduction to the business 3

1.2 Target market 4

1.3 Target customers 4

1.4 Define the services that enterprises provide 4

2 Service spectrum 5

2.1 Primary core services 6

2.2 Secondary core service 7

2.3 Auxiliary services 8

2.4 Add or eliminate some services (if any) to improve the quality of services 8

3 Customer flows 9

3.1 Present customer flows 9

3.2 Proposed customer flows 11

4 Physical environment 12

4.1 Old version 12

4.1.1 Ambient conditions 12

4.1.2 Facilities 13

4.1.3 Layout 15

4.2 Facilities assessment 22

4.3 Suggest a “new version” 29

5 Human resource management 30

1 Overview of The Cups Coffee

1.1 Introduction to the business

The Cups Coffee is the first coffee shop branded coffee chain of Da Nang people invested, built and managed by Vietart F&B Co., Ltd on a large scale including 4 establishments The first facility was built at the end of 2018 on Le Duan Street, followed by in 2019 the business expanded to 3 more locations on Nguyen Van Linh Street, September 2 Street and Nguyen Van Thoai Street This is a food service business with the main mission of constantly striving and perfecting to elevate the coffee industry

in Da Nang, proudly reaching further on the world map The design is modern, simple and sophisticated with mainly wooden furniture, harmoniously combined colors to create a cozy and luxurious space

The Cups Coffee at 233 Nguyen Van Thoai is one of four stores in Da Nang This place has an area of 80m2 under the management of 13 employees including managers, full-time employees and part-time employees The Cups Coffee provides the core service of food service This service was formed to serve The Cups Coffee's customers with cups of coffee with strong flavor of pure roasted coffee, giving customers a new experience but still close and keeping the values local culture The Cups Coffee always wants to bring value to customers by taking customers' emotions

as the driving force for development, in order to do this, The Cups Coffee staff always welcome and serve customers in a friendly manner enthusiastic, thoughtful manner while taking care of the space as well as quality drinks In addition, The Cups Coffee also focuses on the service process, each cup of coffee delivered to the customer is the result of a rigorous working process from the careful selection of ingredients to the roasting process at the factory and prepare directly at the counter, the special thing is that customers can directly observe this process The Cups Coffee is not only a place to bring special coffee flavor but also a place to bring relaxation to customers

1.2 Target market

The Cups Coffee is one of the rare coffee chains and it is the first to be founded and branded by Da Nang people The target market that this coffee chain aims to first

is the Da Nang market These coffee shops are located in very expensive streets,

crowded, fun, and bustling as Nguyen Van Thoai

1.3 Target customers

The Cups Coffee is commonly known as a coffee shop The target customers that

this chain of stores targets are first and foremost young people Or more specifically, it

is the customer who needs to find inspiration to work and where to meet the work (such as Freelancer or office workers) More than that, it's dating The proof is that

when entering The Cups Coffee, it will not be difficult to observe many customers drinking coffee while working Even the space that this coffee shop design is very modern and sophisticated This trait is very suitable for the younger generation who are

of working age

Most of the customers are between the ages of 24 and 35 They prefer space

that is airy enough, wide, and the sound environment is not too noisy so that they can work in the most focused way They still like comfortable seating, more light, power outlets,

1.4 Define the services that enterprises provide

First of all, we should learn the definition of the service: “A service is a

process consisting of a series of more or less intangible activities that normally, but not necessarily always, take place in interactions between the customer and service employees and/or physical resources or goods and/or systems of the service providers, which are provided as solutions to customer problems.” Gronroos (2000)

At The Cups Coffee, the services that this business provides to customers will

be divided into the following categories:

- Core products and services:

+ Core products and services: is a service that satisfies the main needs of customers, is the main reason for customers to buy services Contact The Cups Coffee, the core service of this store is to serve drinks to customers (including coffee and other drinks) through the core product is coffee and the ingredients are other drinks

+ Sub-core products and services: is a service that satisfies the secondary needs of customers Like The Cups Coffee, this business serves food like pastries to customers

- Additional products and services: are secondary services, provided to

customers to satisfy non-mandatory needs such as basic services but still must have In contact with The Cups Coffee, this service is shown in the following services:

+ Customer service: Customer service is all the support activities that businesses provide to customers both before, during and after purchasing products or using business services to help customers get the best shopping experience Contacting The Cups Coffee, this coffee shop also focuses on providing this service to customers for example, replying to messages via fanpage, Provide information to customers about the store When customers call the menu and ask questions about the drink, the consultant is quite enthusiastic, Also typically when our team comes and asks the staff to take a photo, the staff will coordinate all the way

+ Payment service: Payment service is the bank providing the means of payment and making payment transactions to customers The Cups Coffee has both cash payment services and credit card and bank card payments,

2 Service spectrum

Through the business survey, we found that The Cups Coffee possesses a broad and diverse service spectrum, including many services that can relatively fully satisfy the needs and increase the quality of customer experience As well as many other service

businesses, The Cups Coffee’s service spectrum is divided into four types: primary core services, secondary core services, auxiliary services and component services

2.1 Primary core services

- 1st product line: Traditional coffee

+ Black coffee (hot/cold)

+ Milk coffee (hot/cold)

+ White coffee (“Bạc xỉu”) (hot/cold)

- 2nd product line: Italian style coffee

+ Espresso (hot/cold)

+ Americano (hot/cold)

+ Cappuccino (hot/cold)

+ Latte (hot/cold)

+ Caramel macchiato (hot/cold)

- 3rd product line: Frappe drinks

+ Caramel coffee frappe

+ Matcha frappe

+ Chocolate frappe

+ Coconut coffee frappe

- 4th product line: Tea

+ Golden lotus seed tea

+ Lime tea

+ Lychee rose tea

+ Peach tea mania

+ Oolong tea with white pearl

- 5th product line: Hot tea

+ Ginger Chamomile Tea

+ Jujube Rose Tea

- 6th product line: Milk tea

+ Bubble Tea

+ Thai Green Bubble Tea

+ Chocolate Bubble Tea

+ Taro Bubble Tea

+ Caramel Cookie Milk Tea

+ Brown Sugar Deerioca and Fresh Milk

+ Special Milk Tea

+ Special Thai Green Milk Tea

+ Special Chocolate Milk Tea

+ Special Taro Milk Tea

- 7th product line: Special coffee

+ Cold brew coffee

+ Salted caramel coffee

+ Almond latte

+ Egg coffee

+ Egg cocoa

- 8th product line: Vitamin Mix

+ Spinach, Pineapple, Apple, Mango, Milk

+ Pineapple, Apple, Mango, Milk

+ Mix Berries, Milk

- 9th product line: Other drinks

+ Blueberry/Passionfruit/Raspberry soda

+ Hot chocolate with almond

+ Blueberry/Raspberry/Passion Fruit yogurts

2.2 Secondary core service

The Cups Coffee also provides:

- “Banh mi”, including four variations:

+ “Banh mi” with grilled meat

+ “Banh mi” with shredded chicken meat

+ “Banh mi” with BBQ meat and pork bologna

+ “Banh mi” with Vietnamese meatball

- Roasted coffee pack includes two product lines:

+ Strong Blend (200gr/500gr/1kg)

+ High Aroma Blend (200gr/500gr/1kg)

- Many types of pastry

Picture 2.1 The Cups Coffee’s menu

2.3 Auxiliary services

- Ordering through apps: Grab Food, ShopeeFood, Baemin

- Payment by credit card or debit card

- Free WiFi network

- Free parking

- Toilets for Men and Women

Besides, The Cups Coffee also has some component services such as welcome and check customer information, security service, and recommending suitable drinks for each customer

2.4 Add or eliminate some services (if any) to improve the quality of services

Adding points card service When the business adds this service, customers will

be able to accumulate points and convert that point into money.From there they will save a large amount of money for the next use In addition, this service is motivating, motivate customers to use food and other services at the business Mechanism of action: Customers come to the business and buy services (e.g order a cup of coffee) The customer will receive a point on the business's sales system For every 10 points, customers will be given a glass of buffet water worth less than 50 thousand

Adding a roof so that customers can safely enjoy the drink at the store without worrying Mechanism of operation: customers come to the business to drink water and use the free parking service The customer's car will be put into the shade of the sun curtains instead of the outside and directly exposed to the sun

Adding services to sell heat-retaining cups, glass cups branded The Cups Coffee This helps customers have a more favorable view of the business and help the name of the brand become more popular This can be considered as a secondary core service of the business Customers can use this service even when using or not using the main core service

3 Customer flows

3.1 Present customer flows

The Cups Coffee has 03 working shifts a day: Morning shift (7a.m – 12p.m), Afternoon shift (12p.m – 5p.m), Evening shift (5p.m – 10p.m) Each shift will include

04 staff: 01 cashier, 01 bartender, and 02 waiters Each employee's specific tasks in a shift include:

Staff Quantity Job description

Cashier 01 After receiving the order from the guest, the cashier will confirm

the information, print the bill, and give the bill to the customer for payment, along with transferring the bill to the bartender Finally, bring the self-service vibrating card to the counter for guests Bartender 01 Prepare water according to the customer's request

Waiter 02 Take care of guests One staff is responsible for bringing drinks

to the counter and pressing the system so that guests are notified when they receive drinks (standing area: the counter)

Take care of guests One staff cleans the table after guests leave (standing area: the entrance)

Table 3.1 Job description of The Cups Coffee’s staff in a shift

As a result of the previous, we have a process flow diagram of The Cups Coffee:

Picture 3.1 Process flow diagram of The Cups Coffee

According to the flowchart above, there are 04 key actions that take the following amount of time to complete:

Picture 3.2 License renewal process times at The Cups Coffee

As a result, the flow diagram for the current process is as follows:

Picture 3.2 Present process flow diagrams of The Cups Coffee

Flow diagram for the current layout (image 3.2), which identifies the bottleneck operation as activity 2 (prepare drinks) with CT = 300s, limiting the current production capacity of the system to 12 items/hour

Thus, the system's current capacity is:

CS = 1

𝐶𝑇 = 3600

300 = 12 items/hour

Present total direct labor content = 160 + 300 + 30 + 60 = 550 (s)

Present direct labor utilization = 𝑇𝑜𝑡𝑎𝑙 𝑑𝑖𝑟𝑒𝑐𝑡 𝑙𝑎𝑏𝑜𝑟 𝑐𝑜𝑛𝑡𝑒𝑛𝑡

(𝑃𝑟𝑜𝑐𝑒𝑠𝑠 𝑐𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒)∗(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑤𝑜𝑟𝑘𝑒𝑟𝑠) x 100%

= 550

3.2 Proposed customer flows

With the present direct labor utilization, it is necessary to propose a different service process to establish a job with higher productivity and a better work-life balance for employees The following suggestions are given in particular:

Picture 3.3 Proposed process flow diagrams of The Cups Coffee

With the proposed process design as shown in image 3.3, a shift still contains 04 staffs but the structure has changed: 01 cashier, 02 bartenders, and 01 waiter At this point, the bottleneck operation becomes activity 01 with CT = 160s, limiting the production capacity of the system to 22.5 items/hour Meanwhile, activity 02 increased the number of employees to 02, so the capacity increased to 24 items/hour Activities 3 and 4 are combined to form a single task (the waiter, after bringing drinks to the counter and pressing the system, can clean the area or the tables when the guests have left) Thus, the system's proposed capacity is:

CS = 1

𝐶𝑇 = 3600

160 = 22.5 items/hour

Proposed total direct labor content = 160 + 150 + 90 = 400 (s)

Proposed direct labor utilization = 𝑇𝑜𝑡𝑎𝑙 𝑑𝑖𝑟𝑒𝑐𝑡 𝑙𝑎𝑏𝑜𝑟 𝑐𝑜𝑛𝑡𝑒𝑛𝑡

(𝑃𝑟𝑜𝑐𝑒𝑠𝑠 𝑐𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒)∗(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑤𝑜𝑟𝑘𝑒𝑟𝑠) x 100%

= 400

As a result of the proposed method, the system's processing capacity has increased from

12 items/hour to 22.5 items/hour, while direct labor utilization has increased from 45.83% to 83.33%

4 Physical environment

4.1 Old version

The Cups Coffee is designed with a closed, luxurious and fresh space with two brown - blue tones combined, bringing a close, rustic but equally sophisticated coffee experience space for the customers The Cups Coffee focuses on making full use of natural light, surrounded by transparent glass walls, opening up an airy and harmonious space throughout the four seasons

4.1.1 Ambient conditions

- Location: Located at the "golden intersections" like Nguyen Van Thoai, prime locations, The Cups Coffee is close to entertainment and entertainment venues with well-invested space

- Temperature: The space at The Cups Coffee seems to always keep the temperature of 21°C, creating a cool and gentle feeling

- Color: The main color of coffee shops is brown - blue tones, bringing a close, rustic but refined coffee experience space The light is also mainly golden brown tone, in harmony with the design space of the cafe

- Noise: Entering the cafe, customers seem to be isolated from the hustle and bustle outside

- Sound: The playlist played throughout the cafe is soft and gentle Vietnamese ballad songs

- Scent: Behind the door, customers are immersed in a quiet and gentle space with the aroma of coffee in the air

4.1.2 Facilities

- Customer service equipment:

+ Main material: Wood

+ Main colors: Brown - Green tones

+ The main wooden furniture from the floor, tables and chairs, shelf frames are also carefully selected The large and small tables are exquisitely designed from monolithic slate wood with outstanding wood grain, bringing rustic, close and comfortable features like at home Not only the usual tables and chairs, The Cups Coffee also impresses thanks to the striking golden brown one-piece sofa design And if customers go in groups, there are still separate sofa models to serve groups

Picture 4.1 Facilities of The Cups Coffee

- Equipment for production: The system of facilities for beverage production at The Cups Coffee is fully equipped and modern, with machines such as:

+ Coffee Grinder: Includes 2 machines with different coffee fineness: 6 - 12/40 grind for making filter coffee, and 1-5/40 grind for brewing diluted coffee like Espresso, Cappuccino, Americano…

+ Automatic coffee machine

Picture 4.2 Facilities of The Cups Coffee

+ Time attendance machine - Fingerprint scanner

+ Self-service vibrating card

+ Machine to receive shipping orders

+ Bank card swiping machine

Picture 4.3 Facilities of The Cups Coffee

The Cups Coffee is both a "glass cabinet" and a "factory" when the business space is both a place to display material and immaterial aspects for customers to perceive and a place to produce products and services

4.1.3 Layout

The Cups coffee is a coffee shop located on Nguyen Van Thoai street near My Khe beach, so the shop has a sign design for customers to easily find