SWOT for 大家樂

Café de Coral is a publicly listed company engaging in fast food business with its main stream of sales coming from Café de Coral shops, apart from institutional catering and specialty restaurants.

With over 130 fast food shops as its core business in HK, Café de Coral is over-dependant on its quick service restaurant business. The fast food sector is under keen competition. Among its competitors, Fairwood and Maxim’s MX are both growing strong eating up the market share of CDC. Besides, customer needs in quick service restaurant have become more trendy and un-predictable. CDC has to switch its business strategy to avoid continue depending on quick service restaurants. Profit margin has also been lowered due to increase in rental and payroll expenses, while these 2 elements are the significant components in CDC’s P&L.

S stand for strengths, not weaknesses.

Weaknesses:
1. Low ROA (Return on assets)
2. High cost as most shops are in prime locations