The café is one of the most popular restaurants in the industry which offers food, souvenirs, ambiance, and clubbing to all age groups of the society. The parent company of Hard Rock Café in Seminole Tribe of Florida and it has a tagline of “Love all & Serve all”. The unique selling proposition of the brand is the Rock and Rolla music with the food.
Strengths in the SWOT analysis of Hard Rock Café :
- Location – The business always chooses a great location for the café which has a high catchment area and people can easily access the location. This helps in bringing footfalls to the café.
- Present Globally – The business is present globally across 50 countries and the brand association is relished by the club goers. The brand recall is globally high which showcases the high brand value and acceptance with the customers.
- Great Ambience – Hard Rock Café provides great ambiance to the customers which promote the bond with the customers. An ample number of events keeps on happening which helps in better engagement and footfall for the café.
- Innovative Ideas – Hard Rock Café provides priority seating to the customers which further creates a next level engagement with the customers.
Weakness in the SWOT analysis of Hard Rock Café :
This is the pain area of the organization where it does not have the resources or skills. Business has to work upon these areas so that they are not left behind from the competition. Though there will be some or the other weakness it should not be an area which takes the business pout off the market
- Price – The price of the products and experience is very high and the business in which the café operates is very price and competition sensitive which makes it difficult to have a loyal set of customers. This also increases the churn ratio.
- Attract Customers – The supply in this industry is very high and also the customers get defected easily because of the offers by other cafés and new innovative ideas. Thus it becomes really hard to retain and attract new customers.
- High Dependency on Customers – The business totally demands driven and customer-centric. One bad review leads to the defection of various other customers and hence it becomes very critical for the business to keep on delivering exceptional services to the customers.
Opportunities in the SWOT analysis of Hard Rock Café :
This helps in understanding what other things a business can do with the current skills and resources. It helps the business to know the areas where it can expand and take a lead in order to diversify the business and expand the customer base
- Diversification – The café can further try to diversify into other segments of food by not sticking to only a few kinds of cuisines. It will help to attract more customers and the café can have a regular stream of customers
- Customer Loyalty – As the industry in total experiences high deflection of customers thus it becomes very important for the café to innovate new ideas to promote customer loyalty and have a regular group of customers
- Expansion – In the saturating market it becomes important to make sure that the expansion strategy is placed well to reap the benefits of economies of scale in the business.
Threats in the SWOT analysis of Hard Rock Café :
This analysis helps in understanding what are the areas which can impact the business in future or right away. So business has to prepare itself to handle the threats in the market landscape. Competition or increasing number of players in the market with same value proposition is a threat to business as it directly lowers the customer base and revenue
- Competition – The industry is highly competitive and price sensitive as new entrants keep on entering this business as it gives high profitability. Thus to fight this competition the café needs to be continuously evolving in the services it provides.
- Changing Customer Needs – Customers are nowadays using online channels to order food and physical gatherings are reducing which directly impacts the business of the café.
- Market Saturation – The market has already saturated and hence it becomes difficult to survive with so many players competing for a small pie of cake share