Beans N' Cream Coffeehouse...and More?

Abstract

This case involves an entrepreneurial company’s decision on whether to expand or not expand due to over-crowding issues at their current location.  Caroline McCourt and Beth Mielcarek started their Sun Prairie coffeehouse initially as more of a hobby, “a comfortable 3^rd spot” for their regular customers.  The offerings included not only coffee and specialty drinks but also a breakfast and lunch menu in a comfortable relaxing atmosphere.  Operating in a mid-sized (20,000 population) Midwestern town experiencing significant growth, sales have steadily increased over the past 6 years.   As the popularity of the shop increased, long lines and a crowded atmosphere have detracted from the favorable ambience of the shop.  This case places students in the position of owner of an entrepreneurial company contemplating expansion alternatives with the goal of satisfying customer needs.