Berry Bliss Bakery (BBB) is a small family-run business specialising in high-quality artisanal pastries and custom-made cakes. Located in a busy city centre, BBB has built a strong reputation for its personalised customer service and attention to detail. The business relies heavily on word-of-mouth recommendations, with most customers being loyal locals. Despite its success, BBB faces increasing competition from larger bakery chains offering similar products at lower prices. Emma and Raj, the owners, are considering how to grow their business.
One option is to open a second bakery in a nearby town, allowing them to serve new customers. However, this expansion would require significant investment in hiring staff and renting premises. The second option is to start selling their products online, enabling them to reach customers further afield. Selling online would involve costs for setting up a website and creating a delivery system. Emma favours opening a second location to grow their local brand, while Raj is cautious, worrying about potential cash flow problems and loss of quality control if they expand too quickly.