Lidia has worked for Coffee-Coffee for many years progressing from barista to store manager. She likes her job because she has the opportunity to meet and train new employees, oversee store operations, and meet and talk to members of the public. At a recent regional meeting, the store managers were informed that Coffee-Coffee was adding five new outlets in the region. Lidia and the other managers discussed how this would impact the business at their locations, and were informed that the expansion was viewed by the company as a benefit because it provided more power in dealing with manufacturers and suppliers of cups, coffee makers, and other merchandise and food that is sold in the stores. What type of business is Coffee-Coffee?

Chain retailer

Explanation:

The coffee-coffee business is a type of chain retail

Chain retail refers to two or more retail stores having the same ownership and selling the same lines of goods. It is a

group of similar retail shops that sell the same type of goods. The store has different branches located in different locations but are all under the control of the head office.

Advantages of chain store

1. It has direct contact with the consumers.

2. A particular products is sold but may be in different varieties.

3. Reduction in cost of advertisement because one advert can be used for all branches.

4. Non profit branches can be identified easily

5. Existence of a uniform price in all branches.

6. Absence of credit sales

Disadvantages of chain store

1. Difficulty in controlling different branches.

2. Chain store may lose Customer since a particular product is sold.

3. Taking account of every branches might be stressful

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