Crimson Fish & Chips:

Extinction or Evolution or Expansion?

By Dr. Md. Ridhwanul Haq, Mr. Mushtaque Ahmed, and Mr. Zeeshan Ahmed

On November 2015, Mr. Shahid Haque sat in his office and pondered about the
decision he must make. He had spent the entire morning thinking of ways to change the
course of his brand and bring about a positive change. The board wasn’t convinced of his
ideas and were keener on shutting down the project entirely or change its positioning to
something posh. As the Project Manager of Crimson Fish & Chips, Mr. Haque couldn’t easily
bend down to failure. The board will sit down for the decision in 5 hours, and Shahid had to
be ready with a decision and be able to back it up with proper reasoning.
Crimson Fish & Chips was a small seafood cart that served fish and chips in the Banani
area of Dhaka City. Gaining great popularity within the youth, Crimson Fish & Chips saw
increasing sales in its inception year. However things turned for the worse at the beginning
of 2015, and the board while ignoring at first was now eager to shut down the concern.
Crimson Fish & Chips wasn’t big enough to have its own board, but it was the board
of its parent concern Crimson Suites Bangladesh that was pushing for a decision (Exhibit 1).
The board consisted of members mainly from its parent group Crimson Private Limited.
Shahid acknowledged that most of the members were not too aware about Crimson Fish &
Chips and even less were interested in the venture, which meant he had a bigger job of
convincing them of his new plans. But what made his jobs more difficult and easier at the
same time was that he had to convince one individual in the board to get the board to side
with him. That was Zubair Chowdhury.
Zubair Chowdhury was the Managing Director of Crimson Suites Bangladesh, a
veteran in the Crimson group and the initiator of several successful ventures under the
Crimson banner. He had been supporting Shahid from the very beginning of Crimson Fish &
Chips but when it comes down to business Zubair is unbiased and would do anything for
Crimson. With the latest developments Zubair was not impressed with Crimson Fish & Chips.

Rise of Crimson
Crimson Private Limited started as a pioneer in the real estate and housing industry
of Bangladesh. Established in 1988, Crimson Pvt Limited since then has not only
consolidated its expertise in the field of housing but has also expanded itself into other
related businesses. With a workforce of 3300 people, Crimson promises high quality
buildings and apartments. As Crimson Pvt Limited achieved success day after day, it
expanded into other businesses such as hospitality (Crimson Suites Bangladesh),
consultancy (Crimson Consultants), Protection and Management Services (Crimson
This case has been prepared solely as a basis for class discussion and not as an endorsement, a source of primary data, or an
illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance
to actual persons is coincidental. There are occasional references to actual companies in the narration.
 Crimson Fish & Chips: Extinction or Evolution or Expansion?

Protection), stock brokerage (Crimson Brokerage), and ceramics (Crimson Ceramics).

Diversification by Crimson has had immense impact on the business overall, while also
experiencing a shift in priorities1.
Crimson Suites Bangladesh was the brainchild of Zubair Chowdhury. Then the
business development manager of Crimson Pvt Limited, Zubair envisioned the need of high
quality boutique hotels in Bangladesh. In 2008, he started the first venture for Crimson
Suites with very same name in the Banani area. Observing great response from the market,
Crimson Suites created its second venture in Banani in 2010. As the country progressed
Zubair realized that his hotels were leaving out a segment of the market who wanted to live
nearby to the airport in Dhaka. Soon enough he created his third hotel in Uttara, keeping it
only 4 km away from the airport.
The city of Dhaka experienced a revolution in its food industry in 2014. Food carts
were popping up all over the city to provide consumers with a new food experience. The
front runner in this was Wow burger. While Bangladesh has always had its own version of
street food, mainly fuchka and chotpoti, this was the first time that quality fast food was
brought out in carts. The food cart revolution was emblematic of a shift in societal attitudes.
Previously street food was always looked down upon due to hygiene issues leaving most of
people the option of sit-in restaurants. The revolution was bringing a change in perception
towards street food and creating a culture of its own.
Zubair realized the potential of the food cart revolution and wanted to join the
bandwagon as well. He assigned Shahid, a senior manager in Crimson Suites Bangladesh, to
analyze the market and propose a cart idea of their own. After analyzing the market, Shahid
realized that a potential item that they could bring to the food cart industry was fish and
chips. The British street food while unknown to most Dhaka consumers could help make
Crimson’s cart a good hit due to its uniqueness. Zubair loved Shahid’s idea instantly and
asked him to start procedures to initiate the plan in 2 months.
Crimson Fish & Chips started out as the first and only fish cart in Bangladesh on
August 24, 2014. With a new product in the market, the brand aimed to introduce the street
foodies of the country to a well-known yet new type of food. The concept of fish and chips
has only been known to Bangladeshis due to TV channels and British legacy. This was the
first time a brand was bringing the food to the consumers reach.
In an ideal location in Banani, the cart received immense positive response from
consumers. By the end of August 2014, the cart’s Facebook page had 500+ likes. With a basic
package of fish, chips, sauce, and a bottle of pepsi, Crimson charged the consumers Taka 220,
which was deemed reasonable by the consumers. Crimson Fish & Chips quickly took the
opportunity to participate in the GP Foodball Carnival held at the Banani School & College
field to increase its market exposure. The carnival was a great success for the cart and its
Facebook page reached 1000+ likes during that event. Shahid taking in the feedback of

1
Klein & Lien (2009).

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 Crimson Fish & Chips: Extinction or Evolution or Expansion?

several customers quickly removed the soft drink from the package and priced it at Taka
200.
The price change was welcomed by the fans, and Crimson to further expand opened
its 2nd
cart in Gulshan 2. The rest of 2014 saw Crimson Fish & Chips participating in several
food fairs, partnership with Foodpanda, and another cart opening in Uttara at the beginning
of 2015. Shahid quickly became a popular personnel in Crimson and was promoted to Project
Manager of Crimson Fish & Chips. The year 2014 gifted Crimson Fish & Chips with great
returns, however 2015 was a completely different chapter.

Bangladesh & Fish

Bangladesh has always been heavily dependent on fish as a primary source of protein
for its people2. Fish consumption accounts for 66% of total intake of animal source food,
indicating the key role fish plays in the Bengali diet. When looking at the daily frequency of
fish and meat consumption over a two week period among households, studies show that
approximately 55% consumed no meat at all during the survey period (Exhibit 3). In
contrast, 98.5% of households consumed fish on at least one occasion, and 60% ate fish at
least every second day3.
Fish however varies in demand according to region and income. Per capital fish
consumption increases from lower to upper income groups, in both quantity and value terms
and as a proportion of expenditure on food. There is a range in spending on fish from just
over 9% of total food expenditure in low income groups, to 14-15% for the wealthiest
categories, with wealthier consumers eating larger quantities.
An average consumer in the poorest quartile consumes just 39% of the fish consumed
by an average consumer in the richest quartile, while the former pays a lower average price
per kilogram for fish than the latter group. This indicates that consumption choices are
directly linked to the price of fish; poorer consumers buying cheaper species, and fish of
smaller sizes or of poorer quality. Fish has become an integral part of the Bangladesh food
culture; no matter the social class or income the consumer belongs to fish is an everyday diet
for all.

The Fast Food World of Fish

The fast food scenario in Bangladesh has been hugely dominated by the likes of KFC
and Pizza Hut for the last one decade, if not more. Only in the recent few years has the
industry seen a revolution in terms of both cuisine and the medium through which the food

2
Market Insight Bangladesh Fisheries Sector: Lightcastle Bangladesh (30 Dec, 2014)
3
Review of Aquaculture and Fish Consumption in Bangladesh. Malaysia: World Fish Center.

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 Crimson Fish & Chips: Extinction or Evolution or Expansion?

is delivered. With introductions of Japanese, Korean, Authentic Chinese, and many other
cuisines, the Bangladesh food scene has seen a change in the consumption behavior of the
consumers. Alongside, the introduction of higher quality food in carts have exposed the mass
consumer segment to new tastes.
Through this revolution, fish has taken a new mantel in the Bengali diet. With
restaurants and packaged fish products being offered in the market, consumers are looking
at their old fish staple in a new light. Although it’s been a few years, fish products have gained
immense popularity amongst consumers. With competition pouring in with dedicated fish
service or adding fish offerings to their menu, the fast food industry is experiencing the
growth of an alternative to meat.
Consumers in the fast food industry do not appear to be significantly affected by
pricing. With 2 million Bangladeshis joining the ranks of middle class and affluent
consumers, they are highly optimistic about the future, value foreign brands, and are
jumping onto the digital bandwagon4. These consumers care more about the quality of foods,
quality of services, food variety, pleasant environment of the outlets, and convenient
communication links with the food outlets. Furthermore as the per capita national income of
Bangladesh has crossed triple digit, consumers can now afford to consume the fast food even
in expensive outlets5.

Competition
Fish & Co.
On 21st September 2014, Fish & Co., an international seafood chain entered the
Bangladesh market. With a promise of premium service and food, Fish & Co. wasn’t really in
Crimson’s direct competitors list. However with the concept of a posh restaurant and fine
dining ambience, Fish & Co. easily won over a segment of the consumers in Dhaka. Even with
its premium pricing, the restaurant experienced great responses from the seafood lovers of
Dhaka.
Fish & Co. provided a more diverse menu than that of Crimson’s. While the Crimson
menu was limited to mainly a basic product of fish and chips, Fish & Co.’s menu covered a
wide range of products starting from different types of fish and chips to other seafood items
like mussels and calamari. This diversity of offering allowed the restaurant to create a brand
image like none other. With its already existing international image, the restaurant quickly
won the hearts of seafood lovers around Dhaka.
However with all great success comes a certain group of resistors. While Fish & Co.
was received with open arms by a majority of its customers, a certain customer sect labeled

4
Bangladesh: The surging consumer market nobody saw coming. Boston Consulting Group.
5
Consumer Behavior in Fast Food Marketing in Bangladesh. Developing Country Studies.

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 Crimson Fish & Chips: Extinction or Evolution or Expansion?

it as overpriced and unnecessarily premium6. This group of customers believed that Fish &
Co. like all other international brands was trying to fool the Bangladeshi consumer segment
into paying large prices for products that aren’t truly premium. Such perceptions are visible
at times in the restaurant’s Facebook page comments where consumers have expressed
disbelief as to how one country’s street food can be considered fine dining in another.
While resistance exist, it is only a mere minority in the consumer market. Since the
time of inception Fish & Co. has received amazing response from the consumers especially
from its target market, the upper class. Currently the brand is planning to expand its horizon
in Bangladesh with a keen eye on the rising middle class.
Saltz Restaurant
Saltz Restaurant is the true pioneer seafood restaurant in Dhaka. With a focus on fresh
and high quality products, Saltz has maintained both with great pride while its competitors
went out of business. Consumers still love the old restaurant due to its vintage nautical
themed décor with an option of both indoor and outdoor seating. Saltz also prides itself with
an impressive variety of seafood items.
Like its new counterpart, Saltz too hosts a premium priced menu. Most loyal
customers counter by saying the prices are worth it, but Saltz truly sets itself apart from
others by trying to create a relationship with its customers that is everlasting. The restaurant
has successfully created a cozy, relaxing, family brand in seafood. Saltz Restaurant since its
inception hasn’t changed much in terms of both offering and positioning.

Others
Fish and chips has become a trending item in Bangladesh by the end of 2014. By the
beginning of 2015 numerous restaurants, including those whose main offering is something
else, started to offer fish and chips. Fish Fish a seafood dedicated restaurant started in
Khilgaon recently aiming to fulfill the gap that both Pepper Restaurant and Fish & Co.Fish &
Co. has left behind. By providing seafood dishes at reasonable pricing, the restaurant aims to
serve the middle and lower middle class segment.
Other product providers like Burger & Boost and CFC have both started to provide
fish and chips besides their core product offering to tap into the demand for fish and chips.
With lowered pricing and similar tastes, these restaurants tend to nullify the point of
difference and make the item into a point of parity in Dhaka.

6
Dean, (1976).

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 Crimson Fish & Chips: Extinction or Evolution or Expansion?

2015: A Year of Never Ending Challenges

After the great success of Crimson Fish & Chip’s first year, Shahid was not ready for
the immense hurdles that the second year brought on for him. The Gulshan cart of the
company had to keep changing locations due to the delay of permission from the police. As
the cart kept shifting locations, customers became frustrated with the inconsistency. By the
time the Gulshan cart could find a permanent location, customers were lost as most didn’t
find it in their patience to always check up on the location.
While the location was a trivial matter, a more important social issue overshadowed
Crimson’s business prospect. The political situation in the country quickly deteriorated and
a non-stop blockade by the opposition party caused sales to fall. The crisis got worse when
Crimson had to close its main cart in Banani due to security reasons for 3 days. The months
of non-stop blockade impacted severely on all businesses. Crimson Fish & Chips booked few
sales on a very good day but good days were rare. On most days Crimson would have no
customers visiting them. As costs kept constant, profits were plunging downwards. Crimson
Suites Bangladesh was getting more and more concerned regarding its cost-intensive
subsidiary.
As the political situation became better in March, Crimson Fish & Chips tried to kick
back into gear and increased promotions to attract customers. Shahid created a new menu
consisting of 4 new items to attract the customers again (Exhibit 2). The new menu brought
in Prawn Pops, Fish Burger, Chips & Dips, and a smaller package of Fish & Chips costing Taka
100. The new menu and Facebook advertisement couldn’t bring back the loss the last two
months have caused. Somehow it seemed that customers have lost interest in a seafood cart.
Shahid realized that the political instability has caused his customers to value the safety of
sit-in restaurants like Fish & Co. and were no longer looking for convenience.
Shahid further tried to partner up with Grameenphone Bondhu Garage to attract the
youth segment in Dhaka. However costs were increasing at a faster rate than profits. In
August, Shahid realized that his Uttara cart has failed to make any profit in its tenure. The
cart was only adding more to costs of Crimson, so Shahid retired the cart and pulled out to
save himself from more undesirable costs. Crimson Suites was getting frustrated with the
venture as well and wasn’t willing to invest money further until it started to make profits. In
desperation Shahid started operating business on the weekly holiday it had been holding
since inception. Every Sunday, Crimson Fish & Chips was now open for business.
Events in the month of September caused Crimson to close down its Gulshan cart as
well. With the foreigner murder incident, the location was no longer feasible as the Police
allowed no cart to do business in that proximity. Shahid couldn’t believe how the second year
was turning out for him and his venture. Everything he had built in the first year, was
crashing down in 2015. With the Banani cart as his last hope, Shahid needed to make a
strategic decision regarding the venture, or else extinction would soon engulf Crimson Fish
& Chips.

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 Crimson Fish & Chips: Extinction or Evolution or Expansion?

Strategic Viewpoints
Shahid kept going over the strategic directions Crimson Fish & Chips could head
towards right now. He kept going through the pros and cons of each decision and its impact
not only on the business but also on employees and customers. The last meeting was not
subtle in passing the message of what most members of the board had in mind; close it down.
Each member looking at a different venture under Crimson, felt that the cart business was a
ridiculous project and believed that the money invested could have been put to better use.
While Shahid could have refuted this claim at the initial years of Crimson Fish & Chips, right
now he wasn’t so certain about it himself.
Closing down the cart would at least help save more money from being wasted but it
would mean that a Crimson venture has failed and Zubair wouldn’t take this lightly.
Employees too would be laid off and Shahid may end up leaving Crimson. Shahid couldn’t
come to the fact with the last bit, he couldn’t let go off a company he has been a part of for so
long. He needed to make Crimson Fish & Chips work, he needed to prove that it wasn’t a
worthless venture.
Shahid looked back at the initial plan he had made at the end of 2014 for Crimson Fish
& Chips. A major part of the plan was to open another cart in the Dhanmondi region after
Uttara. Most carts have prospered in terms of business when it came to Dhanmondi, at the
time Shahid had believed that his cart can also benefit by venturing into that area. But trying
to pursue such a case to the board would be quite a hassle. With two carts already closing
down, the board wouldn’t easily entertain the idea of opening another cart. Shahid could
point out the excess carts and employees from Gulshan and Uttara but the additional
investment in the location would deter the board.
A major change could also be brought about following what others did from the
beginning. Crimson Fish & Chips could be changed to a sit-in restaurant and provide the
comfort and safety that all the other shops are inherently providing. If expanding into
Dhanmondi was costly, this would be the colossal. Convincing the board regarding this
decision would be near impossible but it allows the shop to live on and more importantly,
become better for the customers. The brick and mortar model has helped others in the
market to survive, and now it may allow Crimson Fish & Chips to renew itself. However this
change in business model could lead to established restaurants like Fish & Co. and Saltz to
become direct competitors.

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 Crimson Fish & Chips: Extinction or Evolution or Expansion?

Extinction, Evolution, or Expansion?

As Shahid looks out of his office window, he keeps going over the options he has right
now for Crimson Fish & Chips. One decision could end all that he has been working for in the
past one and half year. The other two could take Crimson Fish & Chips further and maybe
even sustain but both would entail greater costs in the short term. However the returns could
be even greater. Shahid must now choose to pick a decision. The board has already made it
clear that they won’t hesitate to close down, but what should he do? Should Shahid side with
the board and let go off Crimson Fish & Chips once and for all? Or should he expand into
Dhanmondi and test new waters for the cart? Or should Crimson Fish & Chips evolve from
the cart business to become a restaurant? Extinction, Evolution, or Expansion?

Exhibit 1: Crimson Company Structure

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 Crimson Fish & Chips: Extinction or Evolution or Expansion?

Exhibit 2: New Menu of Crimson Fish & Chips

Exhibit 3

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 Crimson Fish & Chips: Extinction or Evolution or Expansion?

Exhibit 4: References
1. Lightcastle Bangladesh. (2014, December 30). Market Insight Bangladesh Fisheries Sector.
Retrieved from Lightcastle BD: http://www.lightcastlebd.com/blog/2014/12/market-insight-
bangladeshfisheries-sector.

2. Belton, B. (2011). Review of Aquaculture and Fish Consumption in Bangladesh. Malaysia:

World Fish Center.

3. Munir, Z., Muehlstein, O., & Nauhbar, V. (2015). Bangladesh: The surging consumer market
nobody saw coming. Boston Consulting Group.

4. Ashraf, M. A., Akhter, S., & Noor, S. I. (2014). Consumer Behavior in Fast Food Marketing in
Bangladesh: A Case Study. Developing Country Studies, 34-44.

5. Dean, J. (1976, November). Pricing Policies for New Products. Retrieved from Harvard
Business Review Web site: https://hbr.org/1976/11/pricing-policies-for-new-products
6. Klein, P. B., & Lien, L. B. (2009). Diversification, Industry Structure, and Firm Strategy: An
Organizational Economics Perspective. Advances in Strategic Management, Economic
Institutions of Strategy, 289-312.

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