After completion of the case study, the students will be able to diagnose the strategic challenges associated with scaling a company-owned, company-operated model in an emerging-market context characterised by institutional fragmentation; analyse how firm-specific resources and capabilities, such as supply chain localisation, centralised kitchens and training systems, create competitive advantage; evaluate the limits of these capabilities as geographic scale increases under conditions of institutional voids, regulatory variation and ecosystem fragmentation that characterise many emerging markets; and recommend and justify an appropriate growth strategy for California Burrito by evaluating the managerial trade-offs associated with alternative scaling paths [e.g. company-owned, company-operated (COCO), franchising, regional hubs and cloud kitchens] in terms of control, scalability, capital intensity and risk.
Set in India in 2025, this case study explores the strategic dilemma faced by Bert Mueller, the American co-founder and chief executive officer of California Burrito, a fast-casual Mexican-Californian restaurant chain that had grown from a single outlet in Bengaluru to over 100 company-owned stores across major Indian cities. Known for its fresh ingredients, centralised kitchens and hyper-local supply chains, the brand built its identity through a disciplined COCO model. As revenues reached US$23m, the company faced mounting pressure to accelerate expansion towards a 300-store goal by 2030. However, scaling posed serious risks to consistency, quality and operational control – especially in India’s fragmented and competitive quick service restaurant landscape. This case study challenges students to analyse the trade-offs between growth and control, evaluate the sustainability of the COCO model and recommend a strategic path forward that balances brand integrity with market opportunity.
This case is designed for undergraduate and postgraduate courses in strategic management and marketing, including Master of Business Administration-level programs.
CSS 3: Entrepreneurship.
