(6) Case study: Expansion at the Caf Rouge Caf Rouge was founded in the UK in the late 1980's when they opened their first *French-style caf in Richmond, Greater London During the 1990's the company saw phenomenal growth. As one senior manager recalls: "We started with a theme and developed that theme into a service package that Would easily fit into any suitable building. We would experiment with caf layouts and with menu designs and choices until we had everything as we wanted it. We then documented all of our standard practices so that new locations could quickly learn how to operate. The choice of new sites is a matter of assessing the potential market and considering the structural constraints of any potential properties. Some areas have a better profile of regular restaurant users than others. Also, we needed to locate reasonably close to other restaurants. Our learning curve was quite rapid and now we can recognize whether or not a site will be appropriate and have also got the period from moving in to opening up down to less than two weeks. The restaurant staf are trained in other cafs and the furniture and fittings are all standardized, so it is really just a matter of adding the final touches and we're in and running. We also have to make sure that we can keep up with the rapid pace of expansion. Opening a new site needs both financial and management resources. We put a lot of effort into working out the cash flow and workload implications of each step in our expansion". i Discuss the main expansion-related issues for Caf Rouge. (10 marks) ii. Suggest the reasons why they like to locate close to other restaurants