As I stepped into Cravings Gourmet Popcorn, a Black-owned business in Lansing, Michigan, my first instinct—perhaps shaped by years of operating in African markets—was to check the price. The price of a bag of gourmet popcorn? $9.95. My initial reaction, influenced by my Malawian upbringing, was: That’s a lot for popcorn!
A Simple Product, A Multi-Million Dollar Business
But as I stood there and engaged in conversation with the founder, Chad Jordan, I began to unpack the layers of entrepreneurship in an economy built on convenience, branding, and premium experiences. Chad shared insights into how his business works, and what I learned made me rethink everything I had known about entrepreneurship—especially in emerging markets like Africa.
In this blog, I want to reflect on this experience, break down the economics of a business like this, and compare it with what I have learned about markets, supply chains, and consumer behavior—both from my time in Africa and my current MBA journey in the U.S.
Cravings Gourmet Popcorn: The Business Model That Works
Founded in 2007, Cravings Gourmet Popcorn started as a stall at Lansing City Market before expanding into a full-fledged brand. Chad Jordan saw an opportunity in a simple, high-margin product—popcorn—and built a premium, experience-driven brand around it.
What Makes This Business Successful?
- Profit Margins Are Incredible:
- Chad shared that profit margins in the popcorn business can range between 70% and 90%.
- Given that the core ingredients (corn kernels, oil, and seasonings) are relatively cheap, the business thrives on branding, packaging, and consumer experience.
- Convenience as a Selling Point:
- As my MBA classmate, Kat, pointed out: “America is an economy built on convenience.”
- People don’t just buy popcorn—they buy the ease, the variety of flavors, and the premium experience of enjoying something different from generic store brands.
- Branding and Niche Positioning:
- Chad didn’t just sell popcorn—he positioned Cravings as a gourmet brand, creating unique flavors and aligning with a higher-end market.
- Customers are not just buying popcorn; they are buying a lifestyle choice, a treat, a small luxury.
- Leveraging Local and Community Support:
- As a Black-owned business, Cravings has built strong community ties in Michigan.
- It benefits from local loyalty, word-of-mouth marketing, and collaborations with other small businesses.
- The Power of Scalability and Automation:
- Unlike service-based businesses that rely on human labor, Cravings has a scalable product.
- If demand increases, the company can simply increase production and open more locations.
Why Would This Model Fail in an African Market?
As someone who has spent years as an entrepreneur in Africa, I couldn’t help but compare this business to what would happen if someone tried to launch a similar concept in Malawi or another African country.
1. Pricing and Consumer Behavior
- Price Sensitivity: In Africa, particularly Malawi, popcorn is seen as a low-cost staple, not a gourmet product. Selling a small bag for $9.99 (approx. MK 17,000) would be unthinkable.
- Luxury Perception: Unlike in the U.S., where premium food experiences are common, most African consumers prioritize functionality and affordability over indulgence.
2. Supply Chain and Infrastructure Challenges
- Raw Material Costs:
- In the U.S., supply chains are efficient, and bulk-buying ingredients is affordable.
- In Africa, importing food ingredients can be expensive, and supply chain inefficiencies drive up costs.
- Logistics and Storage Issues:
- A business like Cravings relies on maintaining product freshness.
- With unreliable electricity, poor cold-chain logistics, and limited distribution networks, maintaining quality in an African setting would be challenging.
3. Lack of a Culture of Convenience
- American consumers value convenience and are willing to pay for it.
- In Africa, a large percentage of the population still prefers to cook at home rather than spending extra on pre-prepared snacks.
4. Limited Middle-Class Spending Power
- The success of Cravings is based on middle- and upper-class consumers who are willing to pay a premium.
- In Malawi, only a small percentage of the population can afford non-essential luxury foods.
What This Experience Taught Me About Entrepreneurship
Being in the U.S. has given me a new perspective on what makes businesses thrive. Reflecting on my own entrepreneurial journey in Malawi, I realize that many of my businesses—especially Digital Skills for Africa—were operating in non-viable markets.
Key Takeaways:
- You Can Have the Best Idea, But the Wrong Market Will Kill It.
- DSA had everything—a clear mission, a high-impact service, and demand.
- But the problem? We were serving a market that could not pay.
- Convenience and Lifestyle Businesses Work Where People Can Pay for Them.
- Cravings thrives because people pay for convenience.
- In African economies, people do not yet prioritize convenience at scale.
- Branding and Positioning Are Critical for Market Success.
- In the U.S., businesses can create perceived value and charge premium prices.
- In Africa, this branding playbook is still developing, making it harder to charge high prices.
The Future of My Entrepreneurial Journey: Learning from This Experience
My experience with Cravings Gourmet Popcorn made me realize something fundamental:
🚀 The best businesses are built where the market conditions allow them to thrive.
This is why my next venture, Q2 Corporation, is focusing on gaming and entertainment, industries that have global scalability.
What I’m Doing Differently Moving Forward:
✔ I will no longer build businesses that rely solely on Africa’s local economy.
✔ Q2 Corporation will focus on global markets first and Africa second.
✔ I will prioritize scalable industries like gaming and digital entertainment.
What This Means for African Entrepreneurs
If there’s one lesson I’ve learned, it’s this: Entrepreneurship is not just about solving problems—it’s about solving them in a way that makes business sense.
My Recommendations for Young African Entrepreneurs:
1️⃣ Build Businesses That Scale Beyond Africa
- The most successful African businesses (like Flutterwave, Andela, and M-KOPA) serve global markets.
- Consider industries where you can sell to international customers rather than just local ones.
2️⃣ Find Business Models That Work in Low-Spending Power Economies
- Focus on high-volume, low-margin businesses if you’re targeting mass African markets.
- Otherwise, go premium but target customers who can afford it (e.g., expatriates, tourists, or corporations).
3️⃣ Embrace Digital and Scalable Ventures
- Digital services, SaaS products, gaming, and fintech offer better scalability than physical goods in Africa.
4️⃣ Prioritize Policy and Ecosystem Change
- Governments need to create environments where businesses can thrive, including:
✅ Better infrastructure (electricity, internet, roads)
✅ Easier access to funding and investment
✅ Policies that support digital and creative industries
The Big Picture
When I first walked into Cravings Gourmet Popcorn, I didn’t think I’d leave with such a deep reflection on market viability, pricing power, and entrepreneurial ecosystems.
But this experience reaffirmed what I’ve been learning in my MBA:
✅ Successful businesses are not just about great ideas—they’re about great execution in the right market.
And as I step into my new role as Black MBA President, I want to help more young entrepreneurs—especially young Black Africans—understand what it takes to build businesses that actually work.
from the new Black MBA President,
Ntha
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