Coffee Shop Economics : Coffee Shops

The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.

I set out to find a place to begin my observations, not knowing what to fully expect, what I may find. So I decided to look around at what is close to my home that isn’t a place I frequent or have even visited at all. Then it came to me, the Starbucks that is only about a mile away is a perfect place for me to observe subjects that I would consider different from myself, seeing as how I consider such obscene prices for coffee ridiculous. Starbucks is a very popular chain of coffee vendors that describe their product as more about quality than what Americans are used to in typical coffee joints.

Café Coffee Day was able to transform the tea drinking market of India into a successful café coffee market industry throughout the country. This “new” concept of coffee and cafés were to appeal to the younger generation who desired to socialize more but just needed a place to do so. Café Coffee Day was able to commandeer the coffee market and appoint themselves as the top coffee chain in India. Café Coffee Day was capable to be extremely successful until a large competitor, Starbucks, was launched in India. Starbucks attracted the established individuals and middle aged people who were able to afford its pricier product. Café Coffee Day has a younger demographic consisting of teenagers and college students who were unable to pay for the

For most working-class Americans, the first thought in the morning after waking up is typically: “I need coffee!” “The most widely used stimulant in the general population is caffeine, which is available in many food sources, including coffee, tea, and chocolate” (Lieberman, 49). Yes of course, these days a lot of people have coffee makers so easily they can score their first cup of “Joe” at home. But for those that don’t have the luxury of brewing a double shot espresso in the comfort of their humble abode tend to look for fast and convenient establishments that can serve them a latte` on the run. Starbucks is a well-known coffee house that is famous for their coffee and branded retail merchandise. Big time competitor Panera Bread is another well-known bakery that has a slimmer coffee selection but includes a larger bakery as well as dining room for guests to spread out and feel more comfortable. Although Starbucks and Panera Bread have

Coffee – for some, a morning cannot begin without it. Many daily rituals include it. It

Ours is a caffeinated nation. We purchase more coffee than most other nations in the word – almost a third of the planet’s supply – and consume roughly one hundred billions cups of coffee per year (Clark 2007:7). Coffee is the second-most-traded physical commodity in the world, with four out of every five North American adults drinking the beverage on a regular basis (Clark 2007:7). Throughout history, all civilized societies have had places in which people could get together and socializes, share gossip, discuss ideas, or just unwind. These public gathering places are vital to a culture’s health, and they have always reflected the diverse character of their patronage: London has it boisterous pubs, Beijing its formal and proper teahouses, and Paris its relaxed style sidewalk cafes (Clark 2007:2). Currently, in North America, we have the cozy, indulgent coffeehouses as our social hub, and Tim Hortons is a company that has taken this kind of communal place, standardized it, branded it, and sold it to a large amount of devoted consumers (Clark 2007:12-13). Customers all over Canada and the United States have seized onto the chain and made it such an entrenched part of their lives. Tim Hortons has found a way to provide and promote feelings of social connections and safe refuge – two things that people desperately crave. Due to this fact, I decided to examine a local Tim Hortons coffee shop located at the intersection of Ellesmere Road and Neilson Road and provide a detailed

The coffee house sector has become one of the largest growing in food service. The competition does not just start and end with nationalized coffee house chains, but also includes the smaller local coffee house businesses.

Coffee is a widely consumed non-alcoholic beverage prepared from the roasted seeds commonly called the beans of the coffee plant (Rojo, 2012). The love for caffeine is the reason why people are attracted to café houses and this is precisely, why coffee is such a booming and huge business today. In practically all civilized places today, a cup of piping hot coffee is always close by and especially in urban environments; it is difficult to walk even for five minutes without encountering a vendor. A coffeehouse, coffee shop, or café is an establishment which primarily serves hot coffee, related coffee beverages (e.g., café latte, cappuccino, espresso, tea, and other hot beverages). Many cafés also serve some type of food, such as light snacks, muffins, or pastries. Coffeehouses range from owner-operated small businesses to large multinational corporations. From a cultural standpoint, coffeehouses largely serve as centers of social interaction: the coffeehouse provides patrons with a place to congregate, talk, read, write, entertain one another, or pass the time, whether individually or in small groups. Since the development of Wi-Fi, coffeehouses with this capability have also become places for patrons to access the Internet on their laptops, tablet computers or mobile phones (Duncan, 2016).

(C) One of the advantage of the coffee shop have a customer who spend A$5 in the shop it is profit. Those customers are still spend $5 in the shops it make a profit for their business.

In the coffee industry, the three retailers, Dunkin’ Donuts, Intelligentsia, and Starbucks, all have their own unique style to attract consumers. To better understand and observe the elements of coffee retailers, we selected two locations from each retailer to perform our research. First, we collected menus to determine the products, depth of assortment, and product

From there, it was introduced throughout the Americas, and so began the history of the coffee shop industry in the United States. Now a day coffee shops are seen as a go to place to either relax, get work done, or to go socialize with friends. This has in turn created a new type of coffee culture, making coffee shops the place to be.

Consumers are less inclined to buy coffees and teas in supermarkets due to the wide variety of coffees that are available in coffee shops today. Hi-tech equipment and premium ingredients are now easily accessible and are used to make a variety of hot and cold beverages that are sold in coffee shops; from cappucinos to the ice blended coffees. As a result consumers are becoming more knowledgeable about the ranges of specialised fresh coffees and premium teas that are

Coffee has become extremely popular and is now the world’s second most valuable traded commodity, trailing only crude oil (Lopez, 2013). In 2012, there were roughly 20,000 coffee shop businesses in the United States, producing combined revenue of $10 billion dollars (SBDCNet, 2012). In the United States, major chain coffee shops account for 70

Included for discussion are various types of coffee venues such as coffee shops, which usually serve specialty drinks and desserts; espresso bars, which will also serve alcoholic beverages along with the drinks and desserts listed above; cafés, which usually serves specialty drinks, desserts, sandwiches, and soups; and coffeehouses, which is essentially the same thing as a café, except they also host live local gigs and present their customer with my space to sit and socialize with friends. Coffee shops are an interesting type of shop. On one hand, there is not a high profit margin in the sale of coffee and desserts; however, if additional product were to be sold on location, it may make it more profitable to have customers that want to

The coffee industry is one of the world’s largest commodities, produced in over 70 countries and employing nearly 20 million people. The United States accounts for approximately 20,000 coffee shop businesses with revenues totaling $10 billion in 2011 and on an upward trend, according to the Small Business Development Center (SBDC). Industry analysis, conducted in 2012, found the coffee industry to be controlled by the top 50 companies, which account for 70% of the sales. The remaining 30% of