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Black Canyon Coffee

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Black Canyon Coffee
Mohit Jain
MGT 767 - 302
Missouri State University

Company Background
Black Canyon Coffee (BCC) is a Thailand based coffee shop which has grown to become the largest coffee shop chain in Thailand. BCC opened their first store in 1993 in Bangkok and since then company has experienced 15 to 20 per cent annual growth with very little debt. Though Thailand is a low coffee consuming country but with the help of strategic marketing BCC has been able to penetrate the market. Presently BCC had 78 locations in 2002, and nearly 100 locations in 2003. BCC was founded by Pravit C. Pong who also is the managing director of the firm. Currently BCC has about 1000 staff members, 500 of which are direct employees and rest …show more content…

Another issue with opening shops in foreign locations is that of lack of efficient human resource. Experiences staff who speaks English in BCC are very few and hence if they are one place planning the start-up they cannot function someplace else and so the expansion rate slows down. Another challenge with the expansion is that of increased complexity of supply chain. Having foreign outlets scattered across the world, BCC needs to fight with stale inventory or stock shortages. With these challenges and restraints in place BCC has to take corresponding steps to expand globally.
Solutions Analysis
Coffee consumption is increasing not only in Thailand but also in other Asian countries which provides BCC a great business opportunity to expand. According to me BCC should plan on expanding throughout Asia initially through kiosks. They should also go ahead with selling branded Black Canyon Coffee beans in supermarket and other retail outlet. For expansion in America and Europe they should focus into the niche of high-end restaurant business.
Cost of goods sold at kiosks is twice that of a restaurant and so is the productivity. Though range of services available at kiosks are little less compares to a restaurant but the setup expenses, franchise fee and other expenses are lesser compared to the restaurant. Kiosks provide the highest profit margin to the company and hence will help BCC to generate

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