| HBS Case Collection
(Revised June 2013)
Red Hen Baking Company
In 2007, the Red Hen Baking Company was deciding whether to move from its cramped and inefficient facility to a new facility. It had been in business about 8 years, and 2006 was the first year RHB realized a profit that was over $50,000. The added annual cost of the new location was about $58,000 and would require a $300,000 build-out. While the owner of Red Hen was excited about the possibility of a new, efficient bakery, he wondered if it was worth the added expense and risk.
Ruback, Richard S., and Royce Yudkoff. "Red Hen Baking Company". Harvard Business School Case 211-091, March 2011. (Revised June 2013.)