Amy's Bread Case Study

680 Words3 Pages
Amy’s Bread was founded by Amy Scherber in 1992 and served about 50 wholesale customers in the Manhattan area. The bakery serves only high quality, handmade breads made only out of premium ingredients. Amy’s clients include some of the finest restaurants, hotels and gourmet food shops in Manhattan, and they have a waiting list of more than 30 wholesale customers from other quality restaurants, hotels and shops. The bakery faces the problems of space and demand. The existing space is space is simply not enough to fulfill the demand of the customers. Other problematic factors include that fact the techniques that Amy’s Bread uses are physically demanding on employees, resulting in the need for more employees and again, the need for more space. More employees also mean a higher overhead in an already low profit margin industry. The initial cause of the problem is that the very driven and young entrepreneur, Amy Scherber was not able to obtain a loan from a bank to open her initial location. This was the first business venture on her own and the banks would simply not give a loan to a business without a proven track record. Since Amy had to rely on only on her dream, her personal savings and a few private loans she received from her parents and from former colleagues, she settled on a 650 square foot store front in the tough area of Manhattan known as “Hell’s Kitchen”. Amy set out on her venture, getting the shop in working order and hiring employees that she trained in her unique handmade bread making techniques. Between a loyal customer listing, very powerful word of mouth advertising in the Newly York restaurant business, and a growing industry for health food, the bakery quickly became very popular and was running to their full capacity. This is a very highly competitive industry with low wholesale profit margins. In order to move to a

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