Coffee Bar Supply And Demand Analysis

Recreation is defined as the enthusiasm that people will undertake in their leisure time. Recreation activities can be divided into four which are home-based recreation, recreation away from home passive and active. Coffee bar is the place suitable for the people who are passive because there got free wifi, delicious food and drink. They can spent their time to do some passive activities like reading book, listening to music, watching movie and playing games with the free wifi provide by the coffee bar. Besides that, people stay at coffee bar can help them release their stress or tiredness while enjoy their delicious food and drink after shopping around supermall or after working. Most people like student, family, coffee lover, couple, shopper

If the price of products in coffee bar increase, customers will reduce to go there and the demand of the product is decreased. For the income, when consumers’ income is increase, their purchasing power is increase and they will tend to go coffee bar when lecture times, hence, the demand of products in coffee bar will increase and the relationship between income and demand of products in coffee bar is positive. Besides that, some consumers not only care about price but compare the quality of products. Therefore, the value added in the products can be an important factors to increase the demand. Fashion and tastes will affect the demand of products in coffee bar. For example, product of Starbuck become global product and this will affect the demand of product of Starbuck increase because consumers want to have a try on this global products. If consumers have opportunities for consumption which means their leisure times is increasing, the demand for products in coffee bar will increase. Through advertising, the products of the coffee bar is publicized and will be known by many people and this will increase the demand of products in coffee bar. Lastly, price of other goods will affect demand of products in coffee bar. Increasing in the prices of others products which are substitution with the products in

Economic environment affect organization like coffee bar in two ways which are demand of coffee bar and cost of the coffee bar. The factors that affects the demand of products in coffee bar are household consumption and investment. Household consumption is the total of expenditure that uses on good and services. Disposal income is the income left for spending is the main consumers’ expenditure. If the consumers’ disposal income is high, the demand of product in coffee bar will be increase because consumers have more power to purchase at coffee bar. Investment is an important role to increase the demand of goods and services in coffee bar. With the supply of the capital goods to coffee bar like coffee machine, equipment and building helps coffee bar to create supply to fulfill customers’ demand and this can increase the demand of goods and services in coffee bar. The factors affect the cost of goods and services in coffee bar are interest rates, inflation and indirect taxes. High interest rates will increase the coffee bars’ costs when borrowing money from bank. When inflation happens, the input costs like labour and raw material costs will increase and the price of products in coffee bar will increase too. Indirect taxes are the taxes that pays to government indirectly. Increase in indirect taxes will increase the price of the products in coffee