to restaurants and businesses. The company has scaled back its expansion plans. After getting this close to bagel paradise, New World Restaurant Group is looking more like toast. The company, formerly New World Coffee-Manhattan Bagel, vaulted into the top position in the bagel world with its 2001 acquisition of Einstein/Noah Bagel. However, it was cited it for violations related to the acquisition and was delisted from Nasdaq the same year. It is now reorganizing after emerging from bankruptcy. The combined operation has nearly 800 shops in 35 states branded under names like New World Coffee, Manhattan Bagel, Einstein Bros. Bagels, and Noah's New York Bagels. Its stores offer specialty coffees, espresso drinks, and pastries in addition to bagels and cream cheeses. New World Coffee has 11 store locations in New York, 4 in New Jersey, 5 in Pennsylvania, and 1 in Florida for a total of 21 store locations in 4 states.Caffino Drive Thru Expresso Bars are offering our customers the same service. There are currently a total of 26 store locations, 25 in the Bay Area and 1 in Southern California. Theexpansion plans call for two to four new store openings per year in Northern California. Furthermore, all expansion will be company sponsored with no franchised operations planned.Customer AnalysisThe company’s market research indicated that its average mail-order customer was a well-educated, relatively affluent, well-traveled connoisseur interested in the arts and cultural events, and usually a loyal buyer of the company’s products. As time went on, the cities and neighborhoods in which the company’s mail-order customers were located became one of the beacons used to decide where to open new stores.Bonding with CustomersAbout 5 million customers per week were patronizing Starbucks stores in early 1998. Stores did about half of their business by 11 am. Loyal customers patronized a Starbucks store 15 to 20 times a month, spending ...
