Case Study Analysis

Topics: Baking, New York City, Bread Pages: 2 (549 words) Published: November 1, 2013
Case Study Analysis Narrative Format
Case Title: Amy’s BreadJuly 30, 2013

Amy’s Bread is a bakery located in New York City. It opened in 1992, and has a staff of 32 employees with Amy, the CEO and Toy Dupree, the assistant manager. The bakery industry in which Amy Bread is working in is very competitive. And usually has low wholesale profit margins. The spaces in New York City are always at a premium, which makes renting a desirable location very expensive. The issues in which Amy’s bread 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 Amy’s 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 Amy’s Bread. At their current location, they 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”. Amy’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 Amy’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...
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