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Ben's Beans, the local roastery The Daily Grind has been using for the last two years, has been late in delivering orders several times
Ben's Beans, the local roastery The Daily Grind has been using for the last two years, has been late in delivering orders several times in the past quarter. This has forced The Daily Grind to temporarily pare down their various coffee offerings to guests-which has had a slightly negative effect on quality and guest experience. As a result, The Daily Grind has decided the current partnership is no longer working. Should The Daily Grind: A.) Start buying beans that are pre-roasted. To keep it local, which is very important for The Daily Grind's brand, their only option would be to go with the one other coffee roaster in town, Java Jane's, which sources their own beans. Although the beans would not be hand-selected by The Daily Grind, there would be an overall cost savings of 17%. Java Jane's also vacuum seals their bags increasing their shelf life from one month to 12 months. As a result, on-time fulfillment of specific single origin and coffee blends would not be an issue. B.) Buy out the roaster. This option would bring The Daily Grind's roasting in house, making it solely responsible for every step from sourcing all the way to brewing. Ben's Beans currently can't afford to expand to meet your growing demand. As a result, they would be willing to sell the business to The Daily Grind for $325,000. The Daily Grind would then invest an additional $55,000 into expanding the roastery's output. Current staff at Ben's Beans would continue to work in the roastery providing the expertise The Daily Grind has come to expect from them, while also training select The Daily Grind employees on the roasting process. C.) Become an investor in Ben's Beans. The Daily Grind could invest $100,000 into Ben's Beans so they would be able to make the necessary expansions to fulfill The Daily Grind's orders. As a result, The Daily Grind would own 33% of the roastery and would be able to negotiate a discounted price for roasting its beans.
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