Tuve torg — small square bakery and bar

TUVE

by Lea Herzfeld, Jessica Juhlin, Cong Bui Dinh and Anton Drachuk

Submitted as part of the examination for KFD555 Business Analysis with an Emphasis on Contracts and Immaterial rights in Design

M.Sc. Business & Design University of Gothenburg 2017

Table of Contents The square — Tuve torg ���������������������������������������������������������������������������������������������� 4 Description of Raffes Bar & Restaurang �������������������������������������������������������������������� 6 The extended Triangular Model applied to Raffe’s Bar & Restaurang �������������������������7 Object ����������������������������������������������������������������������������������������������������������������������������������������������������������� 7 Subject ���������������������������������������������������������������������������������������������������������������������������������������������������������� 7 Marketing ������������������������������������������������������������������������������������������������������������������������������������������������������8 Finance ���������������������������������������������������������������������������������������������������������������������������������������������������������8

The Rectangle Model applied to Raffes Bar & Restaurang ���������������������������������������� 8 Description of Tuvebagarn ����������������������������������������������������������������������������������������10 The extended Triangular Model applied to Tuvebagarn ��������������������������������������������10 Object ��������������������������������������������������������������������������������������������������������������������������������������������������������� 10 Subject �������������������������������������������������������������������������������������������������������������������������������������������������������� 11 Marketing ���������������������������������������������������������������������������������������������������������������������������������������������������� 11 Finance ������������������������������������������������������������������������������������������������������������������������������������������������������� 12

The Rectangle Model applied to Tuvebagarn �����������������������������������������������������������12 Comparison of the two Tuve businesses ������������������������������������������������������������������13 Comparison of two squares ������������������������������������������������������������������������������������ 14 Discussion and conclusion ���������������������������������������������������������������������������������������16 List of References ����������������������������������������������������������������������������������������������������� 17

The square — Tuve torg

Tuve Torg is the central square in Gothenburg’s Northern district Tuve. The square is Tuve’s centre for shopping and leisure. The square can be easily accessed by bus and car from the Gothenburg city center. When approaching the entrance one passes a church, library, dentist, family center, and health center. These buildings are part of Tuve Torg and close to the square’s main building containing a restaurant, pharmacy, flower shop, Willys supermarket, ICA supermarket, a bakery, and a kiosk.

Tuve office

The following shops can be found at Tuve torg: · Apoteket Stenbocken · Blomsterriket · Bostadsbolaget · Folktandvården · Glöstorpskyrkan · Hälso- och sjukvård · ICA Supermarket · Raffes Bar & Restaurang · SDF Norra Hisingen · Tuvebagarn · Tuve Hårdesign · Tuve Spel & Tobak · Willys Supermarket

medical center

youth club assembly hall library

dental services health center

pharmacy WILLYS

flower shop

betting shop Tuvebagarn

Raffe’s Bar hairdresser ICA

family center

retirement home church

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P

BUS Station

The outside of the square evoked in us the feeling of community, where people can meet in church, a family center or health center, with a small playground for kids, and an art sculpture. Åke Jönsson is responsible for the art sculpture and the children’s’ playground in Tuve Torg. He creates objects imitating ants, representing nature and strength (Sandin, 2016). The combination of these institutions important for the community, together with the statue create the feeling of a small district center. This is the place where people meet and get things done. Furthermore, the construction works around the square imply that Tuve is a district of growth, where new things evolve.

In contrast, the inside of Tuve Torg provokes different impressions. Tuve Torg’s main building is a big hall with bright industrial light. The floor and walls are grey-colored, restricting the space. The atmosphere is cheered up by the extension of the flower shop into the space, as well as the bakery’s café chairs and tables allowing people to sit down and chat. When we entered the square building we instantly saw the Swedish Red Cross had built up tables selling second hand wares for charity purposes. A few people stopped taking a closer look at the wares, chatting with the women leading the stand.

All these observations strengthened our impression of Tuve Torg being the main market square of Tuve. Nevertheless the heavy light and colors created an oppressive and non-inviting atmosphere. As we stood in the middle of the square we could observe friends entering the square together, then splitting up and visiting different supermarkets. As the bakery’s owner told us, often people enter the square together and then split to visit the supermarket appropriate to their budgets. Furthermore many people went into the supermarkets or the restaurant, yet no one stopped in the middle of the hall. There is no space inviting to stop and chat.

All in all, Tuve Torg seems to be a square of contrasts. There is ICA, a higher-priced supermarket, then flowers and ecologically-friendly bread – somewhat luxurious goods that can only be bought by customers having the extra money to pay. On the other hand there is Willys, for cheaper groceries and Raffes Bar & Restaurang offering cheap lunches and alcoholic beverages. It seems like the square is offering something for diverse groups of people living in Tuve. We observed people of different cultural backgrounds, elderly people and young families doing their shopping.

The square quite well represent the district as a whole. Tuve is an area with average income level, high percentage of low skilled people but low percentage of unemployment. Most of the people living there are born in Sweden but around 29% are born in another country and of these most are born in Yugoslavia (Bostadsområden.se, no date). It is nevertheless uncertain how many of the ones being born in Sweden have a different cultural background.

For our square analysis we chose the two businesses: Raffes Bar & Restaurang — a family-owned enterprise to be sold and Tuvebagarn — a newly opened bakery with an emphasis on ecological products. Both share certain similarities in offering food and food services but differentiate largely in their products, target groups and prices.

Subject

Object

Finance

Marketing

Because of these two businesses illustrating the diversity incorporated in Tuve Torg, we further describe both of them from a more detailed micro-perspective. The businesses will be analysed with the help of the triangular model as well as the rectangle model. To the triangular model we have added a fourth side - marketing. We decided to add marketing as both the people we interviewed brought up marketing as an important aspect of their business, but had different approaches to it. The pressure of pursuing marketing strategies for advertising their businesses and products was differently intense. We believe that this sort

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of perspective, providing an understanding of the social and economic driving factors, is essential to analyse the businesses and their environment — Tuve Torg. Additionally, personal interviews and statements from both businesses enabled us to get deeper insights of their positioning in Tuve and Tuve Torg.

We started our investigation at Raffes Bar & Restaurang with a lunch. The following description of the restaurant is mainly taken from our talk to the owner’s stepdaughter, Ezgi, working as a waitress and from the restaurant’s website.

Description of Raffes Bar & Restaurang Raffes Bar & Restaurang is a family owned restaurant at the heart of Tuve Torg. The restaurant was founded in 2002 and was owned by the same family ever since. Four to five employees support the owner in running the restaurant and serving the up to 90 guests that fit into the restaurant. Raffes holds a local monopoly as the restaurant is the only one in Tuve.

Ezgi told us that the diner moved from outside of the square to the inside around 2008. In the past eight years the restaurant experimented with different food offerings, among others Thai food. Many of these experiments did not succeed. Therefore today Raffes’ main menu is made up of traditional Swedish food, as well as kebab and pizza. From the first days Raffes has been a successful business in terms of customers and finances, so we were told.

Regrettably, being the only bar and restaurant in Tuve makes it a meeting point for illegal activities in the area. Allegedly this was the main reason behind the owner’s decision to sell his restaurant and open another business.

The future of Raffes is yet uncertain. A new owner will take over the restaurant in January 2017. The family wants to change the location and clientele. Furthermore they wish to be able to spend more time together as a family and to avoid family members having to miss events in the evenings because of work obligations. Therefore they wish to shift the focus of their future business venture more towards lunch offerings.

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The extended Triangular Model applied to Raffe’s Bar & Restaurang Object Service and product offering The products that Raffes sell are foods and drinks. Throughout the years they have tried different types of foods, such as Asian and Italian, but now they are focusing on Swedish “husmanskost” and pizza, proven the most successful. Raffes therefore follows a business strategy focussing on the customers’ needs and wishes experimenting with different food offers. The restaurant serves lunch every day from 11 am to 3 pm and the customers can then choose from three different dishes. Included in the traditional Swedish or pizza meal is a small salad buffet and coffee. Prices range from 70 to 90 SEK. Raffes also has full rights for selling alcohol, hence in the nights that is the main reason why people come there. As Raffes is the only place in the area to buy and consume alcohol, Raffes has a competitive advantage. A competitive advantage is defined as a value creating strategy that is implemented on a time where a similar strategy is not implemented by a competitor. However it is only a temporary competitive advantage as other actors can implement the same strategy at another time (Barney, 1991). As of now there are no competitors in the square that can start selling alcohol as well but if a new restaurant opens Raffe’s will lose this competitive advantage.

Subject Employees From the interview with Ezgi we found out that Raffes is a family owned and driven restaurant. The family therefore is extremely important for the restaurant to be able to go around. According to the girl we interviewed the main aim of the business is to pay good salaries to the family members, feeding four families.

There are four to five people working in the restaurant depending on the need. Some of the employees only work during the days while others work both night and day. The owner’s daughter in law said that is problematic to have a family owned business as some of them always have to miss the family events. This is also one of the reasons why the family now has sold the business and soon will move on to a new one. Their future aim is to find a business that enables them to spend more free time together.

Customers From our interview we also found out that Raffes can fit in around 90 guests and the customers vary in both age, gender and profession. Raffes’ main business is made around lunch break and in the evening and the guests differ between these times. We were told that around lunch time there are mainly construction workers from the construction site outside the square, business people from surrounding offices and retired people living close by. In the evenings they instead have many people described as “uncomfortable” visitors. These are mostly alcoholics and many are involved in illegal activities. The woman told us that she does not work in the evenings as it is too dangerous and uncomfortable for her to work with these types of people. In the mornings she can find rests of cocaine on the tables or weed behind the gambling machines.

Ezgi also told us that everyone working in the restaurant recognizes all the customers and they had even taken action when one of their regulars didn’t come for a few days. Therefore, she could instantly tell that we haven’t been to Raffes before.

The close relationship between Raffes and its customers, knowing and caring about frequent customers, can be regarded as another competitive advantage, not copyable.

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Marketing The waitress we interviewed stressed that Raffes’ marketing efforts are not very active and do not go beyond digital. Main reason for this marketing strategy might be the local monopoly status and by such a sufficient amount of customers. Raffes maintains an online presence with a facebook business page (Raffes bar & Restaurang, no date) and a website (Raffes, no date).

Website The site obtains a very basic, for us less appealing, design and non-responsive (not adjustable to different screen sizes, e.g. mobile), thus it can be assumed that it did not require big investments. Nevertheless, it does serve an informational purpose, containing menu, opening hours, and contact information. Since its launch in 2004 (RAFFES, 2004) the site was redesigned twice, first in 2007 (Raffes, 2007) and then in 2015 (Raffes, 2015).

Facebook Raffes’ Facebook page is unofficial and has no branding or original content. With a rating of 3,8 and 116 likes the page gets some very positive reviews and customers posts photos of themselves having a good time (Raffes bar & Restaurang, no date).

Satisfied clients, word of mouth and being the only diner and pub in the area combine into a working marketing formula, despite any visual shortcomings.

Finance The finances of Raffes will be based on the financial report as well as some information from the waitress we interviewed in the restaurant. She told us that she herself gets 25.000 sek/month for being a waitress (she gets some extra because she is the daughter in law of the owner) and four families can live from the restaurant’s profits.

The restaurant’s looks gives out an impression that in the past eight years since its opening there have been only a few investments in terms of equipment. Most finances go into purchasing food and paying bills and salaries of family members. The finances will be discussed further below with the help of the rectangle model.

The Rectangle Model applied to Raffes Bar & Restaurang Rectangle category

Key figure

Revenue

Revenue

5 748 249 SEK

Expenses

Raw materials

2 006 687 SEK

Personel

1 850 855 SEK

Other external costs

1 348 738 SEK

Depreciation and amortization of tangible assets

34 492 SEK

Total

5 240 772 SEK

Financial posts

Financial posts

1 728 SEK

Profit

Profit (before tax)

509 205 SEK

Assets

Fixed assets

54 960 SEK

Raw materials

168 195 SEK

Receivables

115 467 SEK

Bank, cash

561 300 SEK

Total

899 922 SEK

Liability

Liability

346 320 SEK

Equity

Equity

553 534 SEK

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Company figures for 2015

Raffes Bar & Restaurang cannot be found in the Retriever database, but when we searched for the corporate identity we instead found a company called YAPI-CAN AB which is also located at Tuve torg (YAPI-CAN AB, 2015). We therefore came to the conclusion that this must be the company name and Raffe is just the name of the restaurant. The numbers here will therefore come from YAPI-CAN AB s annual report even though we in this paper will call them Raffes bar och restaurang.

Revenue 5,749,977 Assets

Liabilities

346,320

899,922

Equity

553,534

Expenses

Profit

5,240,772

509,205

What is most striking when looking Lossat the rectangle for Raffes Bar & Restaurang is how small the assets and profits are in comRevenue parison to the high revenue. A reason explaining why Raffes has a low profit is because the company is spending a lot of money 468,330 527,340 on both raw materials and employees. A reason for this might be that the company is family owned and the focus of Raffes Bar & Restaurang is mainly to provide the family members with enough money to live a good life. The goal of the restaurant is therefore Liabilities 639,300 Assets not to constantly grow and.09-.12 get bigger. Instead the staff is paid more than restaurant employees normally are.

689,300

2016

Equity

50,000

Raffes whole business is built on the foundation that people can get food and drinks there and it is therefore not surprising that Expenses they have high cost of raw material. An additional possible reason for the high cost of raw materials might be that the company 995,670with their suppliers and therefore pay a high cost for the material and that the owner and his does not have favorable contacts employees families eat in the restaurant for free on a daily basis.

Raffes Bar & Restaurang has most of their assets in bank and cash which is probably due to the fact that they have gambling machines where the customers are paying in cash to play and in case they win they are paid back in cash. The waitress we interviewed at Raffes said that they normally have around 60.000 SEK in the gambling machines when emptying each month.

Apart from the cash, Raffes does not own a lot of assets. Even if they spend a lot of money on raw materials they seem to use most of it quite fast after they got it which is to expect as they are selling food and drinks and those can’t be stored for very long.

YAPI-CAN AB started 2008 and except from the first year the turnover has been around six million SEK. The profit however has varied a lot between the years so even if the company has a stable sales it seems like the expenses varies through the year (YAPI-CAN AB, 2015). Maybe this is one of the reason why the owners now have decided to sell the restaurant and start a new business.

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Description of Tuvebagarn

Tuvebagarn is a small bakery business, recently opened in September 2016. Before Thomas Grßndl, the owner of Tuvebagarn, started his small business at Tuve Torg, the bakery was used as a confectionery. Therefore behind the about 30m^2 plain bar, where a friendly waitress served us, is a giant hidden 100m^2 baking workshop, which is in use for today’s business. Over the past decades the bakery had gone through several transitions. From being a classical confectionery, it turned into a franchise bakery and finally started again as a bakery and cake shop of Thomas today. Since the franchise bakery did not use the baking workshop for a long time, Thomas was bound to repair the old machines in the workshop, being the first big investment of his.

Tuvebagarn is the only cafe and bakery in Tuve. They serve hot beverages, bread, pastries, cakes, and a personalized baking service, too.

The cafe has space for 10 customers to sit down, but most customers get their products to take away. For customers who are not living in Tuve the cafe has a website with all the information about location and service, being the major marketing channel.

The future of Tuvebagarn is very uncertain at this point as the company just started and they have made a lot of investments to get started.

The extended Triangular Model applied to Tuvebagarn Object Service and product offering Tuvebagarn is selling bread, pastries, and hot drinks in Tuve Torg. According to Thomas some of the bread and pastries sold are there every day, some are seasonal and some are temporary experiments. The customers can either eat the pastries in the bakery or they can take away. The price is the same no matter if the customers eats it at the bakery or brings it home, despite the cost is slightly higher for the owner if they eat it inside.

The prices of breads and pastries are bit more expensive in comparison to those in the nearby supermarkets. For a regular coffee the customers have to pay 25 SEK and for a cappuccino 33 SEK. The supermarkets, ICA and Willys, are big corporations that can negotiate better prices from the suppliers than smaller actors like Tuvebagarn can.

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Many of the ingredients, such as flour and milk are ecological and fair trade and originate from local producers. The bakery’s unique selling point and therefore competitive advantage might be the usage of ecological ingredients – milk from a local farm and coffee from a roastery in Ringön. Thomas seemed very committed to this local and ecological concept. The intention and business identity behind this is to show the cafe and bakery as “local” and to support the local economy. However Tuvebagarn is in risk of losing this advantage if Willys or ICA start offering these types of bread and pastries.

A risk factor for Tuvebagarn’s baker is that customers in Tuve are not interested in local or ecologically-friendly baked products, or they are not willing to pay higher prices for these goods. Many people Thomas has talked to investigating his business idea, say that they really appreciate self-baked bread and the use of local suppliers, but then are not willing to pay an adequate price.

Willys and ICA might in that case be strong competitors.

It therefore is uncertain how the bakery’s finances are going to develop in future. Because of this uncertain situation Thomas is taking a risk placing a high-quality ecologically-friendly bakery in Tuve.

Subject Employees During the opening hours, from 6am until 6pm on work days, there are four people working at Tuve Bagarn including the owner Thomas who is also the one baking.

Thomas has only had a couple of days off since the bakery started its business in September 2016. Except from making the pastries, an important part of working in the bakery is to chat a bit with the customers and build up a relation to them.

Customers Tuvebagarn has between 70 to 80 customers per day and most of them come between two and four o’clock in the afternoon, which is the traditional fika time in Sweden. Just as Raffes, Tuvebagarn has many returning customers that they have gotten to know. Many of their customers are retired elderly people.

Suppliers The suppliers that Tuvebagarn gets its ingredients and coffee and tea from are important for the company as they regulate which prices Tuvebagarn will have to set for products in his bakery. As Tuvebagarn is a small scale business he can not make as big orders as for example ICA can, which forces him to pay higher prices.

Marketing Tuvebagarn’s owner, Thomas, expressed awareness of the importance of marketing, both in digital and traditional media. He did not feel that his current efforts were proficient and shared his wishes of having better marketing. The marketing channels are in digital: website (TuveBagarn, 2016), Facebook business page (Tuvebagarn FB, 2016) and an Instagram profile (tuvebagarn Instagram, 2016). We will give an overview of the first two, as the Instagram profile with 27 followers can be omitted on this occasion.

Website Understandably for a newly established small business, the website looks like it was made with a humble budget. It has very basic functionalities and visual design and is non-responsive. However it has the opening hours, contact info, links to social media and a photo of the place.

There is also some short information about the bakery and possibility of ordering cakes “for all occasions”. The website is comprehensive for the user, yet does not visually reflect the bakery’s high-quality products.

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Facebook The Facebook page is maintained and has consistent regular updates. Photos of the goods, staff, and current information shows that effort is put into the page as an important marketing channel. 20-30 likes per post with some comments and shares show that there is a certain interest and following in the bakery’s work. 162 page likes and 4,8 rating with 18 reviews to date in the course of three months are rather good statistics indicating the channel’s potential, especially with proper maintenance (Tuvebagarn FB, 2016).

Summarizing Tuvebagarn’s maketing activities it can be stated that all marketing measures have just started and might develop further in future. The information for new customers about Tuvebagarn’s products and services seems to be a critical factor for Tuvebagarn’s success.

Finance As Tuvebagarn started the business in September 2016 they still have not made a financial report. Therefore this one cannot be used to analyze the business finances. Instead we have used another method, deriving key figures, for analyzing Tuvebagarn’s finances which you can see below.

The Rectangle Model applied to Tuvebagarn Rectangle category

Key figures

Figures

Revenue

Revenue

468.330 SEK

Expenses

Employees (3)

204.000 SEK

Ingredients

141.670 SEK

Rent

150.000 SEK

Ext. costs (machines etc.)

500.000 SEK

Total

995.670 SEK

Profit

Profit

-527.340 SEK

Assets

Shop (rent)

150.000 SEK

Machines

500.000 SEK

Receivables

19.300 SEK

Bank, cash

20.000 SEK

Total

689.300 SEK

Liability

Bank loan (incl. interest)

639.300 SEK

Equity

Equity

50.000 SEK

(Numberes based on Rosenlunds Konditori & Café AB, 2016, Lindskonditori, 2010 and Lönestatistik, no date)

Because Tuvebagarn was founded 1st September 2016 there is no annual report or balance sheet available for the company.

Nonetheless we made assumptions based on own calculations and a company of comparison “Rosenlunds Konditori & café” and their figures of 2015 (Rosenlunds Konditori & Café AB, 2016). Rosenlunds Konditori is a good point of reference as it is similarly an independent, small-sized bakery (one to four employees, just like Tuvebagarn with four employees) in Gothenburg.

Source of the rectangle design (see next page) are the described assumptions summarized in the table above.

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Revenue 5,748,249 Liabilities

Assets

346,320

899,922 553,534especially Equity The rectangle model illustrates the high expenditures taken at the start of the bakery business.

High investments, into machines influenced the first four months of the business. The model therefore had to be changed to visualize the negative Expenses 509,205 profit emerging out of it.

The equity5,240,772 of the bakery is very low in comparison to itsProfit liabilities.

We estimate that most assets, like machines etc., were paid with a bank loan.

Revenue

Loss

468,330

527,340

Assets 689,300

.09-.12 2016

Liabilities

639,300

Equity

50,000

Expenses 995,670

The revenue of 468.330 SEK that Tuvebagarn gained in the four months since its founding on 1st September until the end of the financial year 31st December, had been calculated on the basis of our interview with the bakery’s owner. According to his statement ca. 75 customers buy at Tuvebagarn every day. On basis of the prices of baked goods ranging from 15 SEK to 50 SEK depending on size and type of cake or bread, an average amount spend is set at 50 SEK per customer. Scaling these numbers up to four months a revenue of the upper number can be reached.

The high amount of expenses was calculated with information from the interview and Rosenlunds Konditori as point of reference. As the owner of Tuvebagarn is one of four employees and we imply that he does not pay himself a salary, three paid employees remain. An average salary for working in this sort of sales is 17.000 SEK per employee (Cafebiträde lön, no date). This is scaled up for three employees and four months of work.

Further expenditures are done for ingredients and rent. These numbers rely on Rosenlunds’ annual report. The last factor are machines that were bought from the previous owner, according to the interview with the owner. The machines were old and had stood still for a long time so that he had to pay repairments. We therefore estimated the investment in the machines and further external costs at ca. 500.000 SEK. Assets of Tuvebagarn are the shop itself (rent), machines, receivables and cash from the bank. All numbers, but the one for machines, were taken from Rosenlunds’ annual report 2015. The amount of equity is the minimal amount necessary to start a business in Sweden and has the same height as the one of Rosenlund. Liabilities have been calculated as the difference between assets and equity.

Because Tuvebagarn’s bakery business just started four months ago it is difficult to say if these assumptions can be regarded realistically. Nevertheless it can be stated that the high expenditures will lower in the following year 2017 as, if the machines do not break, the investment will hold for several years.

The opening of an ecologically-friendly and quality-oriented bakery in Tuve Torg is an experiment and future developments are hard to foresee.

Comparison of the two Tuve businesses General similarities Raffes Bar & Restaurang and Tuvebagarn both lie in the service sector, serve food and beverages and are small businesses inside Tuve Torg. Both have a small number of employees (five or less), rely more on regular customers and have a local monopoly in their fields. The amount of customers a day may be similar, however it is uncertain. Marketing for either company is low budget and involves a website and Facebook as a communication channels.

Besides these similarities both businesses are very different in their specific product offerings, their establishment within Tuve Torg and target groups.

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General differences Raffes is a family-run restaurant and a bar, serving mostly main courses and alcoholic beverages during day and night. Tuvebagarn is a non-family bakery and pastry shop serving desserts and non-alcoholic, mostly hot drinks from morning until evening. The first one has been in business for almost 15 years and soon to be sold, while the second is newly established. Naturally, Raffes had some time to experiment with its product and service offering, ranging in various world’s cuisines and activities from karaoke to gambling, whereas Thomas Gründl of Tuvebagarn relies on establishing a niché within his expertise and high-quality baking offerings.

The diner/bar is consistently low budget and settling for average, relying on lack of competition and choice for customers. Due to the nature of its offerings Raffes attracts very different clientele than the bakery. Some of Raffes’ clients are even involved in criminal activities. Tuvebagarn’s business has a different approach to currently restricted financial assets, investing in quality and professionalism to deliver potentially high-end products and services, with aim at great care for food craftsmanship. The bakery uses organic components and local ingredients. Raffe’s relies on availability and supplying demand, Tuvebagarn does rely on standing out and creating a quality value proposition.

Marketing differs in the perceptions of it and the investment of time and effort. While Raffes’ seems to assign marketing a lower priority and uses the website mainly for informational purposes, Tuvebagarn views marketing as important aspect establishing the business and attempts to explore the potential of two social media channels in addition to an informative website. Customer reviews on Facebook show a higher satisfaction rate for the bakery.

We chose two businesses that are very diverse. One successfully established restaurant sold because of a criminal customer base and one newly opened bakery optimistic about a demand for high-quality baking goods. The businesses attract different kinds of customers and have different aims for their companies. Because of the observed diversity in Tuve and Tuve Torg we are positive that both companies have the possibility to be successful here.

Comparison of two squares As illustrated Tuve Torg is a square of diversity serving the community and offering a place to meet.

The square is characterized by public institutions for the community, like church and a family center, as well as supermarkets and other shops to do errands.

A different square, Hackesche Höfe , is located in the core of Berlin. The complex, which consist of eight courtyards, was constructed in 1906 as a residential and commercial building. The Hackesche Höfe are characterized by the interlinking functions of each courtyard. The square of comparison is therefore rather a combination of eight small squares for different purposes. In the

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first and second yard once can find restaurants, small businesses mainly in the creative industry, also a little cinema and a cabaret. The cultural approach of the first yard is reflected in its facade held in Art Nouveau design. Whereas the residential parts in the back are closed every evening (Hackesche Hofe, n.d.). Because of this mixture of places and shop the Hackesche Höfe is a very touristy and popular place to go.One can drift along and stroll around and discover special characteristics in each of the eight yards.

Tuve Torg

All yards are made up of warm-colored bricks with big inviting windows to look into. Walking through the different yards arouses the feeling of discovery in an old commerce environment. History and modern culture meet here. During the Second World War the Hackesche Höfe got partly destroyed, but restored after the turnaround in Germany.

facade (renovated)

Tuve Torg and Hackesche Höfe can be compared to the aspect of diversity. Both places have the similarity of people trying to create different businesses to offer a variety of goods and activities to people visiting the square. In both places you can find for instance restaurants serving food and a places to enjoy a coffee. Nevertheless both squares are very different.

area layout

Hackesche Höfe

One might have different first impressions of the two squares when visiting them for the first time.

Hackesche Höfe is cherishing its historic architecture and turning it into a modern place to visit. Tuve Torg on the other hand embodies a sheltered marketplace with access for all people from Gothenburg, but mainly being visited by people from Tuve. However besides the municipal services and businesses selling basic goods distributed in in total 7 facilities, there is nothing more in Tuve Torg. In comparison the Hackesche Höfe’s area is at least double the size of Tuve Torg’s and the buildings are relatively higher. Therefore the Hackesche Höfe has the opportunity to offer way more services and businesses. Among others there’s a jewellery workshop, a soap factory, service of a lawyer or architect and even a cacao atelier. Hackesche Höfe creates a melting pot of emotions and activities, where people gathering together. Tuve Torg does not gives you the feeling of a place in rest at any time, so it is not perceived as a place to meet.

Since Hackesche Höfe is located in the core of Berlin and Berlin is a popular city for tourism the vision of the the square is to leave a big impression on all visitors and inspire them to come back. The stay should end as an unforgettable holiday trip, while in Tuve Torg people visit the square to just to run errands and check off their list. Although these two places seem very different they both have the purpose to bring people together and offer services and goods.

The reason we chose Hackesche Höfe is, because it can be an inspiration for the further development of Tuve Torg.

By adding certain elements like light, or the choice of shops, Tuve Torg might as well be turned into a more attractive square to meet, stay, and discover.

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Discussion and conclusion Tuve Torg is a square of diversity with both strengths and weaknesses. The main strength is that the square offers a place for people to meet and be social. It is a place where retired people can go to meet others and be taken care of, where colleagues can hang out together and where you can have a chat with the people living around you. Tuve is also conveniently placed as it offers this social space as well as practical space (grocery stores, hairdresser and doctor) which means that the people in the area don’t have to go further away to find these services. The shops and restaurants in the square also have a strength that mostly business in smaller areas are privileged to – they know their customers. Therefore they can offer personalized services and provide security for their clients.

The weaknesses found at Tuve torg are mostly related to the not so inviting environment. Because of the fact that there are people there using drugs and bringing guns it is not a safe environment during the nights. Also the inside center (the area between the stores and restaurants) offers very few seating areas, unpleasant lightning and very few things to look at. This is a weakness as not all people have the possibility to spend money on buying food or drinks in restaurants and cafés, but still want to be outside and meet others.

We did see that Tuve is going through a developmental phase, as new types of actors are coming in – such as the ecological bakery. This is likely to change the clientele a bit, as the people who earlier went to other city areas to get this kind of stuff can now come to Tuve instead. To develop Tuve Torg further and minimize the problems with guns and drugs it might prove effective to have more businesses open in the night that are not related to alcohol. This may lead to a larger number and diversity of people enjoying the square in the night, forcing higher security measures and making it a less convenient place for illegal business. Furthermore they should offer space to rest and mingle in an inviting atmosphere for all different inhabitants of Tuve. Besides seating possibilities further art installations might make people stop from doing their errands and start conversations based on the art. They might even be able to interact with is.

Tuve is a square of diversity. Different types of shops and places to eat and drink as well as different types of people coming there. This is one of the strengths that they should always try to maintain and cultivate. Improving Tuve Torg will improve Tuve’s community.

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Rosenlunds Konditori & Café AB (2016). Årsredovisning för Rosenlunds Konditori & Café AB. Göteborg Sandin, K. (2016) Nya Myran-skulpturen på plats på Tuve torg. Available at: http://www.vartgoteborg.se/prod/sk/vargotnu. nsf/1/kultur_o_fritid,nya_myranskulpturen_pa_plats_pa_tuve_torg (Accessed: 8 January 2017).

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