1. Introduction and project plan

1.1. Report Purpose

The study was conducted for the performance analysis of the business operations of Café On The Sea in Its three coffee shops. The objective of the study is to analyze the sales performances of three top-performing coffee shops of the organization at different locations which include Blackpool, Southampton, and Portsmouth. The study has focused on analyzing the performances of the organization’s coffee shops in three locations to provide insights regarding market expansion as well as product offerings. It has efficiently analyzed the products that are offered by the coffee shops along with the consumer segments which are consuming these products. As per the views of Troisi et al. (2020) the ultimate aim of this report is to produce strategic recommendations based on the analysis of COTS’s last three years’ sales performances.

The structure of the report includes an introduction to the organization’s strategic objectives and the purpose of the report. The report has also included the process of data analysis and key performance indicators for the coffee shops of COTS. It has also included a critical evaluation of the chosen data analysis framework. It has also highlighted the issues in the data sets of COTS as well as remedies to resolve the issues. The mean content of the report has focused on analyzing the data and representation of data with proper analysis that improves both tabulations and visualization through charting. Also, the study has provided recommendations for strategic actions and emphasizing on expansion of business by improvement in product lines and business operations.

1.2. Project plan

The report plan has included a total analysis of the data provided by the organization regarding the sales performances in the last three years, from 2020 to 2022. The planning of the report has also included the appropriate users of the analytical framework that has been chosen by the study for analyzing the sales data of the three coffee shops of COTS. The study has also planned to ensure effective applications of the analytical techniques with the help of Microsoft Excel and its tools such as pivot chatting and others for the representation of data in the form of tables and charts. As per the views of Plotnikova et al. (2021) with an effective focus on the analysis of the data, the study will also highlight the findings as well as propose recommendations that align with the long-term objectives of COTS.

1.3. Explanation for data analytics framework

The report on the analysis of COTS has adopted the CRISP-DM framework for data analytics. The data analytical framework is one of the most effective frameworks for analyzing past performances with the help of six main phases that improve business understanding of data understanding preparation of data, modeling, evaluation of the model and deployment (Schröer et al. 2021). These six phases are effective in understanding the business strategy goals and the gathered data of COTS’s 3-year sales data in three different coffee shops. As per the views of Solano et al. (2022) the preparation of the data highlights the stage where the study will focus on mitigating the data quality issues and prepare for analysis where the appropriate model will be applied and evaluated for modification and final deployment. Hence, according to Ayele (2020) the application of CRISP-DM in the framework is one of the effective frameworks to understand the business strategy goals as well as analyze the sales performances for strategic recommendations and decision-making suggestions.

1.4. Key Performance Indicators (KPIs) for COTS’s coffee shops

The report has highlighted key performance indicators for the coffee shops of COTS so that they can measure the success of the operations. Sales revenue has been considered one of the effective KPIs for COTS, which will provide a target for revenue as well as evaluate and adjust the pricing of the products. As per the arguments of Werner (2021), the satisfaction level of consumers is also considered as another KPI for the coffee shops, where it is focused on gathering the feedback of the consumers to understand the satisfaction levels. Further, according to the views of Al Dakheel et al. (2020) food traffic has been considered as another KPI web the number of visited customers daily weekly and monthly becomes an important aspect to evaluate the performance of each coffee shop. The average value of sense is also considered a KPI, it is effective in providing information regarding the consumption pattern of the consumers as well as understanding the product’s effectiveness and demand among the consumers. As per the views of Rosyidah et al. (2022) Cost of good sales or COGS is one of the imported KPIs that provides information regarding the profitability expectations from the business operations although differentiation in revenue.

2. Data quality issues and remedies

Generic data quality issues can be categorized are the issues in a data set, which has been pleasant during the time of generation of the data. Generic data quality issues have two major sources one is system failures or technical faults and another is human error. As per the views of Ehrlinger and Wöß (2022) the study on the performance analysis of COT is have also several generally data quality issues which are arised during the time of data entry. One of the errors, which is common among the generic data quality issues is the presence of null value. It is often observed that within a data set there are several missing data or null value is present which is causes issues in data analytical as the interpretation of data such as average. In the data set of COTS there are several missing data is present which has impacted on the calculation of total sales value and sales value. According to Schmidt et al. (2021) as a remedy to address this missing data the study has considered the missing data as zero value which has directly considering null value as a numerical value.

The mistype names of the products are another mistake that has been found in the data set of COTS. Several labels of the product have been found as mistyped by the data entry operator, which has caused several impacts on the data analytics process. These products have emerged as new products, which has directly impacted the calculations. As per the views of Taleb et al. (2021) the remedy to this problem has been solved by changing the product names and making them uniform for all the products so that the calculation of the performances of the products is smooth. The implications of mistyped product names have also impacted the charting process, where there are other bars or line diagrams that have emerged as a wrong diagram due to the spelling mistake of the product’s name.

3. Data analysis and commentary

3.1. Sales volume and value by month, by year and across the 3 years period

Table A has highlighted the sales value at sales volume of COTS’s three coffee shops. the table has highlighted several trends related to sales value and volume. As per the table, the overall sales volume has increased over the period as per the reference of Awan et al. (2021). The highest sales volume was observed in August 2022 which is valued at 2409 units, while the second highest sales volume was observed in its previous month which is July 2022 with 2119 units of sales. On the other hand, the trade analysis has highlighted that the lowest sales volume of the coffee shops was recorded in January 2020 with a sales volume of 1230 units. The trend analysis of sales value has highlighted that there are several fluctuations in the Silver Valley however the high sales value was observed in August 2022 where the total sales was £7746. Similar to the trend of sales volume, the second-highest sales value was recorded in July 2022 with a value of £6781.

The total sales value and volume have increased from 2020 to 2022 with a significant increase in the market demand for the products of COTS coffee shops. The total sales volume of COTS in 2020 is 20021 units while the total sales value in 2020 is £53007. As per the data set of COTS, the lowest sales value and volume were observed in 2020 where the total sales volume in 2020 was 16664 units. The monthly sales data has highlighted that there is a peak season in July June and August while the down seasons are in the month of December and January in each three years.

3.2. Benchmark comparisons of product groups performance by quarter

The analysis in Table B has highlighted the product performances of three coffee shops in the given time. According to the data the total sales value and volume of cakes has been fluctuated by the total value of high sales that has been recorded under this product is 493 units in Q3 of 2022, with a respective sales revenue of £2708. However, under this product performance, the lowest sales value and volume were observed in Q1 2020 where the total sales revenue was £1880 with a sales volume of the same 376 units. The analysis of Table B has also highlighted that coffee has been immersed as one of the significant performing products under COTS Coffee shops as per the reference of Kriegova et al. (2021).

As per the analysis of the sales value of coffee, the highest sales were observed in Q3 2022, while the lowest sales value was observed in Q1 2020. The performances of folding have fluctuated over the period with a high sales value and volume of 1357 units and £3390 respectively. Compared to cold drinks hot drinks have faced a lower sales value and volume high sales value and volume have been observed in Q3 2022. The performance of pastry has increased over the period where the highest sales value has been observed in Q3 2022. The performance of sandwiches has faced general fluctuations where the highest sales of sandwiches are 2278 units with respective revenue of £4666.

3.3.  Benchmark comparisons of sales volume and value between coffee shops

The analysis of Table C highlights the sales trends of 3 coffee shops of COTS over three years. According to the table, the total sales volume of the organization from the three coffee shops has significantly increased over the period as per the reference of Sarkar and Shankar (2021). The highest sales volume has been observed by the organization in quarter three of 2022 with a value of total sales volume is 6360 units while the lowest sales volume was in Quarter 1 2020 of 4090 units.

However, the sales value has reached its peak in quarter three the total sales revenue is £20468. As for the analysis, it can be interpreted that Q3 has provided significant revenue to the coffee shops of COTS while 2022 has been immersed as the most successful year for COTS in terms of revenue and sales volume.

4. Data charting and commentary

4.1. Comparison of sales value trends across coffee shops

Chart A depicts the sales value analysis through visualization, which has highlighted the increasing trend of sales value over the years. The fluctuation that has been highlighted by the chart shows that in June July and August, the highest sales revenue occurred while the other months faced stagnant sales. According to van Klompenburg and Kassahun (2022), the highest sense has been observed in the year 2022. However, the highest since the value was observed on August 22 with a total sales revenue is £7746, followed by July 2022 with a revenue of £6780 the lowest sales value is in February 2020 revenue of £3263.5.

4.2. Product category performance comparisons between coffee shops

Chad B is highlighting the product performances in three consecutive coffee shops of COTS. As per the visualization the highest sales in Blackpool were in 2020 whereas the lowest sales were observed in 2021. Coffee sales in this coffee shop have provided the highest revenue followed by pastry with a sales volume of 10600 and 3508 respectively. Portsmouth Witnessed the highest sales volume in 2022 with a volume of 8166. Pastry has consistently provided significant sales to this coffee shop as per the reference of Sarker (2021). The highest sense has been witnessed by Southampton in 2021 with a total sales volume of 5728 units.

4.3. Impact of the home-delivery service offered in the Blackpool area, and comparison with the other two cities.

Blackpool has been remarked as the most profitable as well as selling coffee shop under COTS where the total high sales of products was 12349 units in 2022, which is higher than the other two coffee shops. It is highlighting that the performance of this coffee shop compared to others is significant. According to the chart, it highlights the changes in the sales of Blackpool compared to others due to the introduction of new home delivery services as per the arguments of Campi et al. (2021). According to the chart, there is a significant increase in the sales of pastry cold rings and coffee in 2022, highlighting that the impact of the introduction of home delivery services is positive.

5. Conclusions and recommendations

5.1. Conclusion

From the findings of the analysis, it can be interpreted that the organization’s growth has increased from 2020 to 2022. The total sales of all the products have increased in this period. However, the performances of coffee shops are different from each other while Blackpool has been considered the best-performing coffee shop of COTS than others. The analysis of product sales has highlighted that the sales growth of pastry and coffee has been significantly contributing to the revenue of COTS which highlights the consumer’s preferences towards this product line. Apart from these two products, cold drinks have emerged as one of the preferable privileges for customers with significant growth. Also, there a regional difference which are impacting the volume and revenue however the total growth of COTS has been consistent over the period.

5.2. Strategic Recommendations

From the analysis of the study, it has been highlighted several drawbacks and areas for improvement. Based on the findings the study has provided recommendations to COTS for improvement as well as make strategic decisions to increase the profitability. The first recommendation that has been provided to COTS coffee shops is to diversify the products offered to the consumers so that it can increase the consumer base as well as ensure loyalty. Another recommendation to the organization is focused on enhancing the marketing of healthy products to attract health-conscious customers towards the products of COTS’s coffee shops. The study has also provided recommendations for introducing loyalty programs for consumers to incentivize consumers. Through the loyalty programs it can focus on increasing the loyal customers as well as incentivize the customers who regularly visited to the coffee shops. It has also focused on the activities of the organizations and suggested to implement sustainability. The packaging of the products can be eco-friendly packaging which would also increase the brand reputation as well as engage the community with the organizations working.

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