Not just another burrito: can California Burrito scale without losing its essence?

Learning outcomes 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. Case overview/synopsis 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. Complexity academic level This case is designed for undergraduate and postgraduate courses in strategic management and marketing, including Master of Business Administration-level programs. Subject code CSS 3: Entrepreneurship.