Assignment Task:
CASE STUDY – ROAST LTD
Roast Ltd is an independent coffee house chain that was established in the UK in 2008. It has become a well-established part of the popular café culture that has developed alongside the emergence of the digital age, with workers taking their mobile devices to their local café to benefit from wifi, a caffeine boost and possibly something to eat, as an alternative location to their desk. To face off competition, Roast Ltd has built its brand strength on the fact that it is independent. Paola King, the chair of the company since their inception, and formidable driving force behind their success to date, cites their USP as follows: “We offer an alternative to the big brands: we are all about employing local people, and giving something back to the high street; our coffee shops are not cookie-cutter duplications of each other, they all have a certain character depending on their location, and that’s important to us in this increasingly globalised and corporate world. This is a family business, proud of its Italian heritage and inspiration: my parents were from Rome, and we use only the best Italian technology in our coffee machines and follow Italian brewing processes to ensure that every cup of Roast coffee is on a par with what you’d get in a top Italian caffè.”
It may be smaller in size than its big brand competitors, but that hasn’t limited Roast’s ambitions, as it is currently in the middle of a two-phase expansion strategy:
• Phase one – which commenced at the start of 2017 was the opening of a chain of coffee shops in Romania. This has been slow to get going: the launch was initially anticipated for midway through 2017, but ultimately sales only started in January 2018.
• Phase two – In 2019 Roast Ltd is seeking to use its strong supplier contacts in Italy to acquire a share in a coffee machine manufacturer for which it needs to secure finance of a further £400,000.
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