Cory: An Austrian Pastry Company

CASE TITLE: Cory: An Austrian Pastry Company (PDF)

AUTHORS: Romina Espindola and Francisco Castañeda

UNIVERSITY: Universidad de Santiago de Chile BABSON

FACULTY ADVISOR: Andrew Zacharakis

PUBLICATION DATE: 2010

PAGE LENGTH: 17 pages

ABSTRACT: Andrés Ungar, a master pastry chef, and his brother Johnny, a businessman, opened Cory Austrian Pastries, dividing the pastry and management sides of the business between them. Their business is a continuation in Chile of a three-generation family tradition that began in Austria. In addition to selling pastries in eight shops located in shopping malls, they run a factory called Gloriet, which produces baked goods and ice cream for their stores and fills special orders for other companies, generally in large quantities. The factory orders have become the most profitable part of the business. The brothers are now considering how to grow their business. Johnny Ungar likes change: “We live in a dynamic world, which is why we are considering offers for franchises to be built in shopping malls in different areas of the city and region. We have the necessary technology to take on these challenges.” Franchising, however, carries the risk that Cory will no longer control the quality of their products, and quality has been central to their reputation since they began making pastry in Vienna.

TOPICS: Entrepreneurial development, industrial organization, family business, business units, franchising, factory orders, sales to stores, leveraged growth, quality, marketing

OVERALL TEACHING OBJECTIVE: To present a business case in which a company faces the choice of expanding or remaining in its current model of business, especially in a highly competitive environment