Case Study Graeter's

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Graeter’s third generation of family owners expanded the company beyond Cincinnati using a franchising model. However, the fourth generation of owners stopped franchising the manufacturing, arguing that the customer is not aware it is buying the product from a franchise and if the product is not of the quality people have come to expect from the business, it can be damaging the organisations reputation. Developing a new strategy for growth, Graeter’s began distributing their products nationwide through a large network of grocery stores and supermarkets. To facilitate the increased demand for their products, they built a second factory. Furthermore, as a consequence of the business moving away from franchising Graeter’s repurchased the shops

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