Kudler Fine Foods

Kudler Fine Foods

Kudler Fine Foods is a local food store that was opened in different areas of California after the owner Kathy Kudler decided she wanted to purchase fresh ingredients at one location. Since this is a specialty store, Kathy is constantly purchasing perishable goods that do not have a long shelf life. A majority of Kudler’s inventory consists of perishable items and although they strive to use only the best of local organic ingredients, this has become a strong weakness.

Problem Analysis

Kudler’s Fine Foods has been losing money on perishable goods since the day the store has opened. Kathy is aware that this is a problem because it has been identified on the company’s strengths, weakness, opportunities and threat analysis. This has become a problem because the perishable items are constantly being rotated of off the shelves to make sure the goods maintain its freshness. Once the inventory has been removed from the shelves, they are either thrown out or donated to charity. Even though the goods are being given to a worthy cause, the business is constantly losing money because the inventory is not selling as well as it should. Kathy and her team need to re-evaluate and find a way to use products that are financially beneficial to the company’s bottom line.

Solution to the Problem

Having a gourmet food store means customers demand products that have high quality. In order for Kathy to continuing to offer these products without losing money, she needs to approach this in different ways. One way is to only carry products when the demand for the goods are high. For instance, during different times of the year people want certain items that are only available during that season. Another way is to set up a system that will monitor how well the inventory is selling. Do in store taste testing of items that are not selling so customers can become aware of these products. Become aware of the diverse cultures in the community and...