Small Business, Big Decisions – Sugar & Spice AOR in a Changing Customer Landscape
What began as a home-based baking hobby grew into a viral dessert business. As trends fade and customer behavior shifts, how should Sugar & Spice AOR move forward?
At a glance
Location
Alor Setar, Malaysia
Year Founded
2015
Revenue
US$ 29,500
(as of 2025)
Abstract
Sugar & Spice AOR, a Malaysian SME founded by entrepreneur Haryati “Yatie” Tajudin, illustrates the challenges of sustaining a small food business in an era of rapidly changing consumer behavior and digital commerce. What began as a home-based baking venture evolved into a viral dessert business after introducing churros to the local market, attracting significant attention through social media and word-of-mouth marketing.
This case study explores how Sugar & Spice AOR adapted its business model as consumer preferences shifted from physical retail toward online purchasing, social commerce, live selling, and trend-driven consumption. It examines the company’s transition from a pop-up and café-oriented operation to a more sustainable model built on loyal customers, café supply partnerships, seasonal offerings, and digital sales channels.
The case highlights the opportunities and risks of viral growth, customer retention, founder-led operations, and digital marketing adoption in a highly dynamic market environment. It invites learners to evaluate strategic options for sustaining relevance, balancing innovation with operational capabilities, and aligning marketing, customer engagement, and business growth in an increasingly digital economy.
Key Topics: Small Business Strategy, Entrepreneurship, Customer Behavior, Digital Marketing Strategy, Social Commerce, Live Commerce, Customer Retention Strategy, SME Growth Strategy, Founder-Led Business, Business Model Adaptation
Cover Photo: Unsplash
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(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
(2) Regarding University Affiliation and Titles of Authors: The university affiliation and titles of author(s) seen in the case study is based on their affiliation and title during the time of publication. It may or may not represent the current status of said author(s).
