Keep Good Shape (KGS) – the expansion dilemma

ABSTRACT

Learning outcomes: After working on the assignment questions, the learners can achieve the following learning outcomes: to deliberate on the emerging cloud-based business models in the food-tech sector;to scrutinize the challenges faced by a start-up while selecting an expansion model;and to purpose strategies and solutions for scaling up the business. Case overview/synopsis Ms Megha Bafna, the founder, conceptualized starting Keep Good Shape (KGS) in the year 2017. She started the business with a seed capital of INR 3,500 (US$54.13) from her savings. The idea stuck to her mind as she was working with a real estate firm, and every day, she packaged salad for her lunch. Bafna thought that if someone makes the salad available, she will buy it. Based on this this unmet need of the consumers, KGS started as a passion in 2017 and became a full-fledged business in 2021 with 400 daily customers and 38 full-time employees. Today, she serves 22 different salads, including customized salads for customers with lifestyle diseases based on a subscription model. She grew her organization using social media tools such as Facebook and WhatsApp without using any traditional promotion tools. COVID-19 pandemic has increased her orders by almost 10% as healthy meals emerged as people’s choice in 2021. In 2021, she has to choose between expansion through cloud-based kitchen business models across India. She has been confused about selecting the suitable cloud-based kitchen business model and contemplating about funding if she has to expand the business. Complexity academic level An instructor can use this case in the courses of entrepreneurship/strategy subject of a graduate/MBA program. The case study sensitizes the students about setting up a new business and organizing to scale it up further. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3 Entrepreneurship. © 2022, Emerald Publishing Limited.