The Coffee Shop Conundrum: Aggressive Expansion and the Risk of Self Cannibalization The recent second quarter investor letter from Carillon Eagle Small Cap Growth Fund has been making waves in financial circles, and for good reason.
Black Rock Coffee Bar's (BRCB) aggressive expansion strategy is backfiring in a major way.
On the surface, it appears to be classic corporate hubris – a company expanding too quickly, diluting its brand and cannibalizing sales from existing locations.