Decisions Brewing at Fire Roasted Coffee Company
(3 pages of text)
The Fire Roasted Coffee Company (Fire Roasted) was a small regional roaster and seller of coffee in London, Ontario. The company sourced green coffee beans from over 20 different countries and managed the roasting process in house. Its coffee was primarily served at Fire Roasted’s own coffee shop locations, but was sometimes sold wholesale to other cafés and interested parties. In 2017, as the company was about to update its point-of-sale system, the company’s founder and president recognized the opportunity to implement a new set of prices for the premium coffee beverages on the menu. The list of beverages included Americano, cappuccino, drip coffee, latte, macchiato, and mocha. He considered a few different methods of costing selected items, intending to use these costs as an aid to his pricing decisions. He was also determined to incorporate industry and competitive dynamics into the decision.
After working through the case and assignment questions, students will be able to do the following:
- Make a pricing decision in a highly saturated market.
- Consider various methods of costing in order to produce the information necessary to make an informed decision.
- Incorporate non-numeric variables into pricing decisions that go beyond the costing method to include product positioning, competitor pricing, and industry conditions.
Accommodation & Food Services
Canada, Small, 2017
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