Black Canyon Coffee
April 3, 2014
BA 451-01, Strategic Management
Dr. Jimmie S. Warren
Founded in 1993, Black Canyon grew to become the largest network of stores in Thailand in 2003. During the first decade, Black Canyon grew from one location to 78 outlets, serving a combination of hot and cold coffee drinks, as well as Asian cuisine. The founders had no experience in any cafe or catering services, but have been successful entrepreneurs associated industries. Black Canyon Coffee (BCC), a Thai coffee shop with a Wild Wild West theme and is at a crossroad with growth strategy. Black Canyon Coffee houses are located in shopping centers, discount stores, airports, gas stations, hospitals and other types of locations throughout Thailand.
Black Coffee Canyon begins to develop its own strategy for the second decade of the firm. Created out of an entrepreneurial spark to fill a gap in the Thai food and beverage market with an owner who had little food industry experience, Black Canyon Coffee is now profitable enterprise with revenues of THB 318 million and a profit margin of 10%. However there is still room to grow and BBC is exploring international expansion especially when the taste of coffee is growing. Black Canyon Coffee Company has been profitable and has threats from both foreign Starbucks and local competitors.
Although the company was in a strong position in 2003, competition in the industry is expected to become more intense in the coming years. Black Canyon Coffee now has more than 240 branches all around Thailand, and more than 50 branches outside of Thailand. The power of our basic concept is further proven by the flexibility achieved in our formats. In addition to our full service restaurants, Black Canyon Coffee also operates coffee corners and kiosks in locations such as airports and gas stations.
Growing a business that is acceptable to consumers in certain parts of the region is quite...