Starbucks has made its cafes virtual workplaces, using free wireless access to draw customers. But many smaller, independent coffeehouse and restaurant owners have found doing the same has hurt their businesses. Wi-Fi squatters, they say, tend to feast on free wireless instead of food and beverages, and often drive paying customers away. But if they don't offer some sort of Wi-Fi access, many smaller coffeehouse owners fear they'll lose customers to competitors like Starbucks.

For example, Lui Hudson opened Coffee Bar in 2007 at the corner of Mariposa and Florida streets in San Francisco. He wanted the cafe to be a destination and an attractive place for tech-savvy patrons to hang out. Unfortunately, he made it a little too attractive.

"One of the unforeseen problems was that people stayed a really long time and others who came in couldn't find seats," he said. "As a business owner, it broke my heart to turn away business. But at the same time I couldn't chase off the existing patrons because they might not come back."

 

Q1: If you are the owner of this coffee shop, how do you want to manage this situation? In other words, what is your strategy to manage your capacity and demand, especially when lots of your customers occupy your tables/seats for a comfy workplace

Answer rating: 100% (QA)

As the owner of the coffee shop facing this challenge I would implement a multifaceted strategy to manage capacity and demand while maintaining a welc... View the full answer