March 2020
Case
HBS Case Collection

Cafe Kenya

By: Lynda M. Applegate and James T. Kindley

Format:Print
| Language:English

Abstract

This case describes Café Kenya (CK), a Kenyan-based chain of casual quick-food restaurants. The chain was started in 2011 in Nairobi by Nekesa Kuria. Kuria started Café Kenya and grew it by reinvesting profits into company stores and through franchising. She also concentrated on getting the details right, and she helped this effort by hiring the best people possible. Further, she feels a responsibility to help other African women succeed as business owners. The company is very successful. By early 2019, CK had 28 stores, 21 of which are franchised. All the stores are in major cities in Kenya, including Nairobi, Mombasa, and Kisumu. Kuria is considering several options to grow CK, including organic growth, equity investment from an outside partner, and a buyout offer. Each involves tradeoffs that Kuria must decide among. The case can be used to discuss issues such as entrepreneurial ventures, managing a service business, human resource management, and options for growth. It is recommended for upper-level undergraduate students or MBA students in entrepreneurship courses.