“OPENING A COFFEE SHOP IN FRANCE” 1

Opening a Coffee Shop in France

Introduction: The intention of this paper is to appropriately highlight what facilitates

owners of the coffee shop, which is going to be inaugurated in France, one of the countries that

belong to the European Union. For good reasons, significant prospects will be taken seriously

into consideration, such as grounds of preferring the territory, cultural hurdles, location or

logistics. Again, existing marketing mix will focus on the steadiest strategies that have been

implemented with a view of achieving the most anticipated outcomes. Furthermore, the cultural

dynamics and information systems will have the deliberate linkage in connection to the coffee

shop. In the concluding part of this paper, a thorough discussion on the organization’s financial

health will be conducted, followed by recommended aspects and conclusion.

France’s potential for opening a coffee shop: France symbolizes an overpowering

choice for the owners, prioritizing the fact that it has a flourishing and advanced economy and

offers an attractive and associative tract for a new business. France has shown a healthy

performance in regards of investment levels(European Commission, 2017). The French economy

is about to expose its high productivity and living standards with up to mark fertility, longer life

expectancy in decent work-life balance and better heath for the average individual (OECD,

2017). Taking the fact into consideration that investment barriers in France are reasonable in

general, there is a higher concentration of investment around larger firms at a good frequency

(European Commission, 2017). The overall investment patterns reflect on the labor

competitiveness and productivity and have a great impact on the long-standing growth potential

of the entire French economy (European Commission, 2017).

“OPENING A COFFEE SHOP IN FRANCE” 2

Economic & Demographic Factors Consideration and Market Research:

Unemployment rate in France has significantly fallen from 10.4 percent in 2015 to 10.00 percent

in the year 2016, with the forecasting to fall again in the forthcoming years, however,

unemployment in young aged and less-qualified individuals is high leading to the long-term

unemployment to 44.2 percent in 2016’s third quarter in France (European Commission, 2017).

Coffee, as a mature product encounters troubles while recruiting consumers from the young

generation and confronts the loss among aged consumers because of the ageing population as

well as increasing health concerns- since producers have the likelihood of struggling to keep up

volume sales, the key players will be rooted in fetching more added value to distinct brands so as

to keep the sales value stable (Euromonitor, 2017). Based on the recent demographic trends if

continued, 1 out of 3 inhabitants will be minimum 60 years of age in 2050 as compared to 1 out

of 5 in 2005 - undoubtedly the ageing populace of France is going to be higher than recent times

(Robert, 2017). This means that the nation needs improvement in attracting young populace that

can have remarkable positive impact on its demographic change.

Exports of France has continued suffering from feeble competitiveness, while the

enhanced specialization of goods’ exports on several sectors causes France’s export performance

growingly vulnerable to their negative developments (European Commission, 2017). France

experiences the highest public spending in comparison to other OECD countries; a long-term

strategy should be incorporated to handle public spending, make sure the debt is sustainable, and

create options for auxiliary tax cuts and simplification (OECD, 2017).

As the standards of people’s living are enhanced as the time progresses, their demand of

the entertainment, as a result, is increasing notably (Haugton, 2010). If a business like a coffee

shop meet the need for drinks or locations and becomes capable of providing a friendly
“OPENING A COFFEE SHOP IN FRANCE” 3

environment and have additional efforts including entertainment activities, it will gain massive

success in sales.

Pricing: As a great element of marketing mix, price conveys the immense significance,

since it will have a direct impact on profitability acquired by the coffee shop (Johansson, 2014).

In 2016, French Coffee bars have continued exposing a 3 percent present value sales decline, as

well as a 2 percent transactions drop (Euromonitor, 2017). Adverse climate conditioning and the

last year terrorist attacks distinctly hit coffee bars with lower demand in a couple of most visited

cities in France (Euromonitor, 2017). This is why; appropriate price management in accordance

with the current business realm is very important for a startup coffee shop. With that being said,

the competition in the attractive location will have an adverse impact on pricing. Therefore, a

cup of coffee should not be sold over 2.5 euro, while the price of tea will be under 1.5 euro and

sandwiches should be below 3.5 euro.

Organization culture: Culture and leadership reasonably influence the business

dimensions. Culture underscores most remarkable elements that need to be adopted (Johansson,

2014). Leaders appropriately denote “champions” of realizing and managing culture (Simkin,

2010). Leaders will need to play the best part of understanding culture to correctly handle

consumers and meet all consumer expectations for their satisfaction. It is also important to keep

pace with up to mark corporate culture within the coffee shop environment. Leaders will also

encourage and energize employees to make a perfect balance of making business and decently

serving consumers simultaneously so as to keep the teamwork at the top of the priority list.

Location and other facilities: While choosing appropriate location, it is important to

consider that right tracking on communication, transportation, customer gathering, visibility,

size, safety, and neighboring conditions has been done perfectly. For getting the most out of the
“OPENING A COFFEE SHOP IN FRANCE” 4

latest technologies a coffee shop must have highest kinds of technical arrangement including

WiFi, cloud computing, music and visual display management, party space, online correlation

with parties and consumers. Cloud computing is considered as one of the broadly known and up

to date technologies used by plenty of firms (Sackett & Rotundo, 2012). Whatever the location

is, all these arrangements will help the coffee shop look gorgeously located with associative and

positively entertaining environment.

Recommendation and conclusion: Understanding trends is important especially based

on particular seasons. It will help understand what the customer wants most from a service

provider. Region-centric national trends should be realized in order to accelerate sales by

properly attracting customers. POS payment system, use of online payment gateways, online

ordering, freshness of the delivered items, grandeur decoration and lighting are the demand of

time. appropriate organizational behavior, service-oriented aptitude to suit customer satisfaction,

and flawless management are a must in order to continue to keep up a constantly enriched

business by setting up a coffee shop in France.

References

1. Euromonitor. (2017). Cafés/Bars in France. Euromonitor.com. Retrieved 22 November

2017, from http://www.euromonitor.com/cafes-bars-in-france/report

2. Euromonitor. (2017). Coffee in France. Euromonitor.com. Retrieved 22 November 2017,

from http://www.euromonitor.com/coffee-in-france/report
“OPENING A COFFEE SHOP IN FRANCE” 5

3. European Commission. (2017). COMMISSION STAFF WORKING DOCUMENT:

Country Report France 2017 Including an In-Depth Review on the prevention and

correction of macroeconomic imbalances.

4. Haugton, J. (2010). Urban Poverty Assessment in Hanoi And Ho Chi Minh City. Ho Chi

Minh City: Ho Chi Minh Statistics Office.

5. Johansson, E. (2014). Managing Quality.

6. OECD. (2017). OECD Economic Surveys France.

7. Robert. (2017). Population trends in France - Looking ahead to 2050 - An increasing and

ageing population - Insee Première - 1089. Insee.fr. Retrieved 22 November 2017, from

https://www.insee.fr/en/statistiques/1280827

8. Rotundo, M., & Sackett, P. R. (2002). The relative importance of task, citizenship, and

counterproductive performance to global ratings of job performance: A policy capturing

approach. Journal of Applied Psychology, 87(1), 66-80. http://dx.doi.org/10.1037/0021-

9010.87.1.66

9. Simkin, L. (2010). Marketing is Marketing.