Chapter 2 CASE STUDY
Chapter 2 CASE STUDY |
The Creamy Creations Takeover
THE SHOPPE Creamy Creations Ice Cream Shoppe is a small and popular ice cream parlor in a midsized southern city. In 2007, Creamy Creations had been open for almost two years and was gathering a loyal clientele of fami-lies and students from the local community college. Creamy Creations specialized in fancy, individualized ice cream confections. Customers would order their base ice cream ( or frozen yogurt) plus the toppings they wanted to make their own “ creamy creation.” The toppings ranged from the typical ( such as hot fudge, marshmallows, nuts, fruit syrups, and crushed candy bars) to the exotic ( mango fruit chutney, chocolate- covered hazelnuts, and crystallized ginger). Each creamy creation was made start to finish by one of the high school or college students working behind the marble counter. Many customers had a favorite “ creamy creator” and would wait for that person to be available to make a special sundae. In the first eighteen months of the existence of Creamy Creations, it was owned by Bob Peterson, a local retiree who had started the business after thirty years in the military. However, after a year and a half of successful operations, Bob’s wife talked him into selling the ice cream business “ while it’s hot” and buying a motor home to tour the country. Bob sold Creamy Creations to Burger Barn, a local fast- food chain that wanted to expand into other types of food service establishments.
THE TAKEOVER
When Burger Barn took over operations at Creamy Creations, management was pleased with what it saw. Creamy Creations had a solid customer base and had been making a modest profit almost since it opened. Customers spoke highly of the quality product and the friendly atmosphere. As a result, repeat business was high. Not surprisingly, though, Burger Barn thought that Creamy Creations could do even better. Burger Barn had built its reputation on high- quality food served in an efficient and
The Creamy Creations Takeover
THE SHOPPE Creamy Creations Ice Cream Shoppe is a small and popular ice cream parlor in a midsized southern city. In 2007, Creamy Creations had been open for almost two years and was gathering a loyal clientele of fami-lies and students from the local community college. Creamy Creations specialized in fancy, individualized ice cream confections. Customers would order their base ice cream ( or frozen yogurt) plus the toppings they wanted to make their own “ creamy creation.” The toppings ranged from the typical ( such as hot fudge, marshmallows, nuts, fruit syrups, and crushed candy bars) to the exotic ( mango fruit chutney, chocolate- covered hazelnuts, and crystallized ginger). Each creamy creation was made start to finish by one of the high school or college students working behind the marble counter. Many customers had a favorite “ creamy creator” and would wait for that person to be available to make a special sundae. In the first eighteen months of the existence of Creamy Creations, it was owned by Bob Peterson, a local retiree who had started the business after thirty years in the military. However, after a year and a half of successful operations, Bob’s wife talked him into selling the ice cream business “ while it’s hot” and buying a motor home to tour the country. Bob sold Creamy Creations to Burger Barn, a local fast- food chain that wanted to expand into other types of food service establishments.
THE TAKEOVER
When Burger Barn took over operations at Creamy Creations, management was pleased with what it saw. Creamy Creations had a solid customer base and had been making a modest profit almost since it opened. Customers spoke highly of the quality product and the friendly atmosphere. As a result, repeat business was high. Not surprisingly, though, Burger Barn thought that Creamy Creations could do even better. Burger Barn had built its reputation on high- quality food served in an efficient and