BizCafe Case Quiz & Flashcards for Mastery

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary reason for choosing a unique name for your cafe?

To save money on marketing by using a generic name

To blend in with other cafes in the area

To attract more customers with a common name

To reflect the vision and differentiate from competitors (correct)

How will the cost of furniture and equipment affect the cafe's operation and perception?

It affects the cafe's ability to hire more managers

It only impacts the speed of serving coffee

It may affect how customers view the cafe and its offerings (correct)

It has no impact on the cafe's operation or perception

What is the depreciation period for the furniture and equipment purchased for the cafe?

5 years (correct)

1 year

10 years

3 years

How many full-time managers does each store start with to cover Monday through Friday?

Two managers Signup and view all the answers

What is the total annual rent for the space occupied by the coffee shop?

$24,000 Signup and view all the answers

What is the consequence of increasing prices according to the text?

Customer frustration and disappointment Signup and view all the answers

How much is the monthly rent due for the coffee shop?

$2,000 Signup and view all the answers

What is required as a deposit for utilities for the coffee shop?

$500 Signup and view all the answers

According to Jane, what are the key factors that will drive long-term demand for the coffee shop?

Quality of experience and price Signup and view all the answers

What is the reason mentioned in the text for expecting the coffee shop to be a success?

Good location near retailers and the business school Signup and view all the answers

When are employees required to set-up and clean-up at the cafe?

Set-up for an hour before the cafe opens and clean-up for an hour after the cafe closes Signup and view all the answers

How many shots of espresso does a small cup use?

1 shot Signup and view all the answers

What is the estimated amount of coffee (in pounds) required for each shot of espresso?

1/64 pound Signup and view all the answers

What happens to fresh coffee grounds after use?

They are discarded immediately Signup and view all the answers

What is the consequence if there is not enough logo cups available?

Standard cups are purchased at a slightly higher cost Signup and view all the answers

What is the fate of any remaining coffee at the end of the week?

Discarded for quality and freshness reasons Signup and view all the answers

What happens if there is a shortage of coffee during the week?

Local purchases are made at a higher cost Signup and view all the answers

What is the purpose of the Income Statement?

To demonstrate revenues and expenses on an accrual basis Signup and view all the answers

When are items expensed on the Income Statement?

In the period they are used Signup and view all the answers

What is the purpose of a Balance Sheet?

To show assets, liabilities, and equity Signup and view all the answers

Which financial document provides a snapshot of a business at a point in time?

Balance Sheet Signup and view all the answers

Study Notes

Cafe Naming and Branding

A unique name for a café enhances brand identity and sets it apart from competitors.
Strong branding can influence customer perception and loyalty.

Furniture and Equipment Costs

Initial costs for furniture and equipment impact operational budget and cash flow.
Quality furnishings improve customer experience, affecting business reputation and sales.

Depreciation Period

Furniture and equipment purchased for the café typically have a depreciation period of seven years.

Staffing Requirements

Each store starts with at least one full-time manager to cover operational hours from Monday through Friday.

Rent and Operating Costs

The total annual rent for the coffee shop must be calculated based on the lease agreement and location.
Monthly rent payments contribute to the café's overall fixed costs.

Pricing Strategies

Increasing prices can lead to a decrease in customer traffic and sales volume, impacting overall revenue.

Financial Obligations

The coffee shop requires a utility deposit, which is generally based on local utility policies and service agreements.

Demand Factors

Key factors driving long-term demand for the coffee shop include location, quality of coffee, and customer service.

Success Expectations

Reasons for expecting the coffee shop to succeed include a well-defined target market and effective marketing strategies.

Employee Responsibilities

Employees are required to set up and clean up before and after café operations, ensuring a welcoming environment.

Espresso Preparation

A small cup of espresso typically uses a double shot, with each shot requiring approximately 0.2 pounds of coffee.

Environmental Considerations

Fresh coffee grounds can be repurposed for compost or other eco-friendly practices after use.

Branding Materials

A shortage of logo cups can harm brand visibility and customer experience, leading to potential revenue loss.

Coffee Management

Any remaining coffee at the end of the week should either be discarded or repurposed to maintain freshness.
A shortage of coffee during the week can disrupt service and customer satisfaction, impacting sales.

Financial Documentation

The Income Statement serves to track revenues and expenses over a specified period, reflecting profitability.
Expenses on the Income Statement are recorded when incurred, regardless of cash flow.

Balance Sheet Purpose

A Balance Sheet provides a snapshot of a business's financial position, showing assets, liabilities, and equity at a given point in time.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on calculating commercial lease expenses including rent, deposit, and utilities. Understand the financial obligations and responsibilities of a lessee in a commercial lease agreement.

BizCafe Case Questions

Choose a study mode