Freddy’s Coffee Shop: Expanding the Coffee Business in Bangladesh

Freddy’s Coffee Shop: Expanding the Coffee Business in Bangladesh

  • Case
  • Teaching Notes
Abstract

Management at Freddy’s Coffee Shop, a Chicago-themed coffee shop based in Dhaka, Bangladesh, is looking for ways to continue growing as competition from other coffee venues increases. Despite having made a good name in the coffee arena, the café management fears that with proliferation of competition, the coffee business would become commoditized. The management team is pondering alternatives for new revenue streams. Should they expand by opening additional coffee shops and contend with the subsequent increase in overhead costs? Should they open express counters or rent kiosks in the fast-growing modern trades in Dhaka? Should they expand by going upstream in the value chain by supplying bakery items to competitors or selling beans and barista machines? What would be the best growth strategy for the management team of Freddy’s Coffee Shop as they navigate various business challenges that their coffee shop and the coffee industry face at large?

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