Chimney & Mellow – The Pastry Café


SMG has run a sustainable and efficient business for 30 years. Following high standards of excellence, SMG attained a strong competitive position in its market sector. However, there are still many opportunities for growth. One of them is the establishment of a new business in the previously unexplored Food and Beverage industry that will provide a chance to attract new customers and increase brand awareness.

Business Owners and Management

As the major authority in the current business operations, SMG owners will remain the principal managers of C&M.

With an extensive experience in business, SMG will be empowered to supervise and amend C&M activities in order to improve its performance and achieve a better competitive stand.

C&M: Product and Service Range Overview

C&M is the name of the bakery project that aims to meet the current demands in the pastry market and actualize the modern industry trends.

The café will provide a versatile repertoire of products and beverages representing a modern take on the classical and traditional styles of bakery and confectionary – chimney cake and marshmallow. The name of the café is derived from the names of these sweet treats.

The flavor range of core pastry items will include coconut cream, dark and white chocolate, ice creams, and more.

Another important option in the café’s product line is high-quality coffee that will be served by a professional barista and will be diversified by intensity and flavors.

Apart from core pastry items, C&M will offer breakfast and brunch options, including waffles on a stick and pancakes with different savors.

Market Background and Target Population

Foodie culture is growing intensively worldwide, and more people are becoming interested in the authenticity of their food.

The global bakery segment is flourishing. For example, in 2011, the sales of baked products in the United Kingdom constituted over US $9.5 million (International Markets Bureau 2).

Bakery industry in UAE is dynamically evolving and remains stable even in the most difficult economic situations the country encountered during the last decades (Sharma par. 1). It indicates a high demand for pastry products among the UAE population that, compared to other countries, is very young and is attracted by modern trends, innovation, and quality.


Chimney cake is a traditional form of sweet pastry that originates from Eastern Europe (USAID 1). It has a twisted, spiral shape and a unique, delicious taste; also, it has a fluffy and crunchy texture.

Kürtőskalács baking process is a fascinating approach that is fun to watch. The sweet dough wrapped on the skewer is roasted over coals in the oven or on the grill, and even nowadays, the principles of chimney cake baking remain unchanged (USAID 1).

Chimney cakes went global just recently, but already have become an in-demand street food (USAID 1).

Considering the increasing demand for on-the-go products and innovations in the bakery market (“Rising Urbanization” par. 1), chimney cake in several flavor versions may become a great solution for the achievement of higher profitability because this form of pastry meets current trends in the market and thus is associated with a significant potential.

Traditionally, kürtőskalács represents a kind of festive bread because of its exceptional taste qualities. What makes it more valuable for the present-day consumers is its cultural heritage that increases the interest toward this authentic pastry.

Frozen S’mores

A Frozen S’more is a “hybrid desert” that combines traditional S’mores (smoked marshmallows) and ice cream (Knutson par. 1).

Frozen S’mores may also include additional components, i.e., chocolate, cookie, or wafer.

It is a relatively new and a highly innovative creation, and it thus attracts significant consumer interest.

Breakfast and Brunch Culture

The culture of having breakfast or brunch in cafés is well-developed in the European counties; and with the latest restaurant trends in UAE, the demand for café breakfast service commences to grow.

Nowadays, Abu Dhabi locals and visitors have a limited number of places to have a good meal in the morning.

By offering waffles on stick and pancakes as special breakfast options, C&M aims to encourage the development of a breakfast culture and fulfill consumers’ needs.

Coffee Offers

Coffee is the ageless classic and a perfect breakfast beverage. Moreover, coffee is regarded as “a fashion symbol and an opportunity to socialize” (Perez par. 3).

At present, coffee drinking is a modern trend particularly popular among young people. It is observed that since 2008, coffee cravings among global consumers increased twofold (Perez par. 1).

To attract potential customers, C&M will offer a broad range of drinks that will vary in styles and flavors.

Summary: Strengths and Benefits

The suggested product line and C&M environment design respond to the current trends in global the bakery and café industry and, in this way, focus on the attraction of the younger population (14-34 years old). At the same time, C&M offers more traditional options for older consumer groups as well.

C&M will provide a suitable environment for the fulfillment of different customer needs, and visitors will be able to attend the café for a variety of purposes.

Innovation and high quality will be the primary values of C&M and, as many researchers and business actors claim, these values are associated with the potential to develop customer loyalty, increase brand awareness, and achieve business sustainability in the new sector of performance (Sharma par. 1).


International Markets Bureau. “Consumer Trends: Breads, Cakes, and Pastries in the United Kingdom.” Market Indicator Report (2012): 1-14. Web.

Knutson, Ariel. “The Cronut King’s New Science Project: Frozen S’mores.” Kitchn, 2013. Web.

Perez, Marvin. Coffee-loving Millennials Push Demand to a Record.” Bloomberg, 2016. Web.

“Rising Urbanization and Demand from Millennials to Boost Global Cakes and Pastries Market During 2016-2020.” Business Wire, 2016. Web.

Sharma, Alkesh. “Sharp Growth Ahead For GCC Cafe & Bakery Sector.” Emirates Business, 2016. Web.

USAID. “Small Business Brings Tasty Delicious Pastry to Kosovo.” US Agency for International Development Report (2014): 1-2. Web.

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