Reference no: EM132899960

Find SWOT analysis (situational analysis) for this background information.

Trent and his wife Sally have been running a cafe called The Best Cuppa for over twenty years. They offered a premium coffee and light snacks in an exquisitely appointed place located on prime real-estate on Stirling Highway; the major arterial road through Perth's wealthiest suburbs. Their clientele include many wealthy retired people, entrepreneurs and professionals. Times got tougher due to the waning mining boom, falling property prices and competition but, the cafe continued making money. This was largely due to the quality of their product, their service, location, and their loyal customer base built over many years.

Trent and Sally began to wonder if they could do better. By late 2019 they were told by the bank they could secure a large loan to expand their offerings and turn the cafe into a restaurant. This would enable them to deliver a wider range of products to their loyal customer base to improve profitability. While there is a plentiful supply of cheap casual staff from the international students living in the area, there is also a lot of competition from other quality restaurants for business. These restaurants had skilled chefs and their own loyal customers. It was the success of some of these restaurants that made Trent and Sally wonder if they could do better.

By early March 2020, it was clear things were changing. The government would need to shut down sectors of the economy to prevent the spread of COVID19 and they worried about what it meant for their business and ideas.