Directors Centre - Case Studies - Bread. How to make more of it

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We're The Yeast

"We're the yeast" says Head of Business Consulting Paul Jobin. "Hobbs House Bakery was a good, traditional firm, but like many well established businesses tended to look to the past rather than the future.

"They knew where they had come from, and what they stood for, but they were not at all sure of where they were going.

"We've helped them define their business in twentieth century terms. At first, it was a struggle, but soon everybody began to see the benefits, and had positive suggestions to make.

"I think they felt a weight of history had been lifted off their shoulders when they realised that they could be a thoroughly contemporary business without in any way losing their heritage or their values.

"With new investors, new shops, and a television series, we believe that Hobbs House are well on the road to another five generations of success!"

Scan

Is heritage enough? Is there room for a five generation regional bakery business in the 21st century? Should a bakery just bake bread, cakes etc - or should it also have its own retail outlets? Just because you are a good baker, does that mean you are a good retailer too?

Evaluation

Hobbs House Bakery had a superb reputation locally especially for bread, and its shops were high street landmarks, but it was seen as "a bit too traditional". They needed to sharpen up the image of their shops, and really use their bread expertise to extend their range.

Recommendations

Open a new shop with a heritage theme , but with 21st century cappucinos to go as a blueprint for more shops. Invest in producing a range of award winning breads, and gain a nationwide reputation as a first step to selling online and opening shops outside their "home territory".

Action

The new shop has proved a great success, and after a year or so's trading the wrinkles have been worked through. Retail expansion is scheduled for as soon as the recession recedes.

The bakery team have won two nationwide awards, begun to build their online business, and the Fabulous Baker Brothers are now stars of their own TV series.