The ways and solution to reposition Sylvias bar Essay

The ways and solution to reposition Sylvias chevron - Essay ExampleIn relation to the report the company which has been selected is Sylvias Bar. It was one of the renowned towering street bar and a night club which was situated in Birmingham on the High Street. Sylvias Bar was founded way back in the year 1986 and was segmented as fashionable wine and a cocktail bar and mainly targeted the local bank workers. The Sylvias Bar was able o generate make and was performing well with a healthy turnover. However in the modern few years the bar has not been performing up to the expectation and as a result there has been a decline in the profits of the bar and at the analogous time has become less popular. Sylvias bar which once gathered about 400 to 500 customers on regular basis, but in recent years it has been able to gather on an average 100 to 150 customers. Since Sylvias Bar targeted the higher income level of concourse, there rates were also high as compared to any other bar in the town. Sylvia hired the best bar staffs and in addition two of Sylvias friend had also conjugate the business as assistance manager and claimed 20 per hour. Over the years, many late night bars and clubs were opened which made the competition tough for Sylvias bar. As a result the customers preferred the other night clubs over Sylvias bar which resulted in loss for the club. The staffs were also not satisfied with the precaution and wanted new changes to be implemented. Sylvias Bar had encountered problem which lead to its failure. One of the main problems was that of operational factors. The profits of the firm tend to decline at an increasing rate. In the fiscal year 2011, the profit of Sylvias bar stood at negative balance. Sylvias bar was performing well till the financial year 2008 but in 2009 there was a sharp fall of profit and the last two financial years has experienced a declining profit rate. Year Monthly profit / loss (in Pounds Sterling) 2011 -400 2010 -250 2009 32 5 2008 1200 2007 750 2006 2800 2005 3500 Another problem was that of menu and cost of the products in Sylvias bar. The bar was established targeting the high class people of the society which included the bankers and as a result the prices were charged high. The cocktail menu started with a price range from ?8 to ?12. The wine was also high-priced and was import from across the world. Bottles of wine which included the champagne started at about ?25and went up to ?250 while glasses going from ?6 to ?45. The pricing of the wine were seemed to be costly by the visitors and claimed that there were better wines at a cheaper rates in other night clubs. The food menu of Sylvias bar was also costly and was served during the day. The price starts from ?23 for the main course and the most expensive dish cost ?35. But during the recent years there has been a fall in the demand for the food and as a result the bar often had to throw away ingredients. The bar hired classically trained cocktai l bar staffs who normally