KFF Problem Statement
Kudler Fine Foods is a one-stop convenience shop for fine foods. Its owner, Kathy Kudler, came up with the concept for the store because she was frustrated that she had to travel all over town to get all the ingredients she needed to prepare a gourmet meal. The store was successful and she has since opened up two other locations. KFF offers the finest selection of breads, meats and seafood’s, produce, cheese and dairy, and wine at a reasonable price to consumers.
KFF Problem
KFF (COGS) costs of goods sold are too high. Kathy purchases more products than she is able to turn for a profit in a reasonable amount of time. This causes Kathy to loss profits because 12% of goods are rotated out of inventory every two to three days. These products are perishable and what is not sold, is donated to charity or thrown away.
KFF also has two other stores in the California area. These stores are located at The Del Mar and Encinitas locations. The Del Mar location is not doing as well as Kathy would like. To remedy this, Kathy is looking to phase out the Del Mar location once a new location in Carlsbad is up and running.
Other stores have concerned KFF when it comes to competition. Currently, KFF does not have a website or offer e-commerce options to their customers. Kitchen Witch is a local store that has a website and e-commerce capability and sells the same types of kitchen utensils KFF does. Kitchen Witch also holds cooking classes, a service that Kathy does not offer.
KFF Problem Statement
KFF’s is growing too fast, which in turn causes high expenses and low profits. There are opportunities for the competition to broaden there line of products and services. Competitors can add what KFF is already offering to there already competitive advantage.
KFF End Vision
Kathy’s vision was to create one store that would stock a wide selection of the freshest ingredients as well as all of the tools a gourmet cook could ever want. Kathy was...