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Jamie
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CoCo sounds delicious! Would love to try one out if it’s ever available in Boston! There multitude of flavors sounds very fun and exciting, however, as they seem to spend a lot of time inventing new flavors, I’m curious as to how much does this drive up the cost of R&D and ultimately the price of the drinks. I also wonder if they share these flavors with customers first, for example in focus groups, to see how well the customers like the new drinks. There quality control systems of intense training before a new store is opened is very interesting as well. It seems CoCo is interested in having each store look and feel the same vs providing latitude for owners to change the store depending on the local region. Do you think this is the appropriate operating model for attracting high quality customers or would they see any benefit in allowing some tailoring for local customers, especially as they are tied into their local community?
Thanks for the insights on the inner-workings of BoltBus! I’ve used their service before and had a great experience myself. In addition to the factors you pointed out, does their bus fleet utilization factor into their low-cost model? I’m wondering if BoltBus is able to afford luxurious buses and still charge bottom dollar prices by maximizing the utilization of the bus routes. Additionally, I’d be curious to see what other kind of internal HR/organizational structures BoltBus has implemented that also contributes to their low SG&A.