San Francisco Coffee House: An American Style Franchise in Croatia

Description

On their return to Croatia following a six-year visit to the United States, a couple has decided to open their own coffee house, one that is new to Croatia — a California-style coffee house that offers the quality, service, product assortment, ambiance, and efficiency found in sophisticated coffee shops in developed markets, and all for a locally affordable price. The major challenge faced by the couple is how to grow. Specifically, should they consider franchising over organic growth? If so, how should they go about franchising in a country where the market is developing and where franchising is under-regulated, underdeveloped, and misunderstood?

Learning Objective

This case can be used in entrepreneurship, retailing, international marketing, or international business classes. The case provides a practical example of when and how to use franchising. The existing literature on this subject is limited, especially as it relates to emerging markets.

Keywords

Brands business development Corporate governance Franchising Human Resources Management Retail Marketing