The Business:
Renzo’s is a new eating establishment opening on Commercial Drive from the ashes of a longstanding tailoring business, Renzo’s Tailors. Plans are to start as a coffee shop but evolve quickly into a licensed establishment with an on-site cold beer and wine sales.
The Touchpoints:
- Tailoring business which is still open for business.
- Renzo’s continued work with the Lion’s Club
The Perception:
Renzo’s Tailors has been a neighbourhood institution for over 40 years. The owners are seen as community leaders and have deep philanthropic ties to the community.
The Competition:
Bagel Street Café, Café Deux Soleils, Café du Doleil, Café Italia, Caffe Bella Napoli, Calabria Bar, Coloiera Coffee, Continental Coffee, Georgia Coffee Bar, Milano Coffees, Not Just Desserts, Spumante’s Café, Star Café, Starbucks, Tony’s Deli, Turk’s on the Drive, Waazubee Café, Zesty Café.
The Audiences:
Initially customer base would be:
- Coffee connoisseurs
- Old customers
- Walk-by traffic
- Patrons of neighbouring establishments
The SWOT:
Strengths
- Strong ties and history in the neighbourhood
- Reputation as a community leader
- Established clientele (even if it is for a different type of business)
- Owns the building it occupies, minimizes overhead
- A unique store and not part of a chain
- Location across the street from a park
- Has street access on two sides
- A great view from the windows
- Located in a great walking neighbourhood with decent disposable income
- Owner is chatty and personable and will be the primary operator
Weaknesses
- Owner is new to the restaurant industry
- Store is not part of a chain
- Limited name recognition outside of the neighbourhood
- Location across the street from a park (known for drug trafficking)
- Quite a good walk from Skytrain access
- Modest capital
- Limited budget for upgrading interiors or advertising
- Heavy neighbourhood expectations
Threats
- Recession making people frugal
- Multiple outlets for coffee and light snacks in a 10-block radius
- People are creatures of habit
- Active neighbourhood watch with stringent noise by-laws
- No guarantees for being able to obtain a liquor license
Opportunities
- Overhead is low - prices can be fluid
- Strong ties in the community – ability to generate interest through work of mouth
- Mistrust of new businesses and owners – can encourage community support
- Success may take a while – has the luxury of building incrementally as overhead is minimal
- Limited staff means – more owner interaction
- Limited menu means minimal wastage
- Not a chain store – can be more responsive in terms of menu
