Amoy’s Bread Case Study Analysis
The Issues In which Amoy’s read Is facing, is whether to stay at the current location or expand the business and get a larger location to take on more wholesale customers. This would also help the gross sales to rise from the current 75 percent. Another Issue that Names Bread Is facing Is whether to find a location with a lot of foot action, so the retail side of the business could expand as well. Currently, the retail business Is 25 percent of the gross sales.
The primary problem Is space for Earns Bread.
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At their current location, hey are stretched to the limits. The dough production ranges from 1800 – 3000 pounds of day. And this is well over the capacity for just 1300 square feet space. Assistant manager Toy states “We are like sardines making breads.
Surviving in these close quarters is so difficult”. Amoy’s Bread also has a waiting list and customers may soon turn away, if she is unable to fulfill their needs. These problems have emerged due to the fact the Amoy’s Bread has earned a city-wide reputation for high- quality, creative and consistent products.
By 1996, the wholesale customer list had grown to 42 and 600 pounds of dough a day were prepared for their specialty breads such as semolina, golden raisin and fennel bread. The staff had also grown from the initial 6 employees to the current number of 32. They also have a low employee turn over due to higher wages than the competitors and the 5 day workweek as oppose to 6 day workweek that other bakeries and restaurants have.
Amoy’s Bread competes very well in the baking industry because they cater to upscale restaurants and gourmet shops.
The customers at these businesses are usually pampered, so fresh, baked bread is ideal. Amoy’s Bread is of high-quality, innovative and consistent. No machinery is used as they hand shape and individually bake their breads. Maps Bread also stands out because their prices are not focused on what the competitors are. They price their breads usually to cover their expenses and overhead costs.
The reputation for Amoy’s Bread is very positive and their waiting list for more wholesale customers is growing.
Also, the retail side of the business Is expanding as well due o the opening of new restaurants and shops In the area. The customers have commented that they enjoy Amoy’s Bread. Because of these new opportunities, Amoy’s Bread should expand. They should find an Ideal location that not only caters to her wholesale customers, but also a location with high foot action where many people live and work. This would Increase her sales significantly.
Also, Names Bread would need to higher more staff to help with the Increased demands. With a proven, high- quality, consistent products, more success would surely follow.