Exploring The Coffee Shop Industry

In choosing a business form for Tim’s Coffee Shoppe I would choose a Limited Liability Company. Operating as a Limited Liability Company Tim is protected from the issues of dealing with a partner and also the repercussions of his personal assets being attached to his business if he were to be sued. Under the Limited Liability Corporation all his personal assets are protected if the business goes under they cannot go after his home for debt. Working under a single entity LLC: This business is taxed the same as a sole proprietorship. The profits or losses from the business are not taxed directly to the business. But instead the taxed are paid through each single member personal federal tax. Although it will take him longer to turn a profit he will operate the business under his guidelines.

Coffee is a growing part of people’s daily lives. Just before the 9-5 weekdays, and even during the 9-5, it is common for the working class to drink a cup of coffee. To support this accustomed part of our culture, it involves a complex supply chain that allows those coffee beans to turn into a cup that can be consumed. This paper is structured on how Starbucks, the top coffee supplier in the world, can supply its stores, from raw materials to manufacturing, right to the start of someone’s day.

Statistics show that over half of the American population consumes coffee on a daily basis. You may drink coffee hot, cold, mixed, or even in a frappuccino. Individuals are able to make coffee at home, or buy it on the go. Coffee provides people with caffeine, which ultimately gives energy for hardworking people all around the world. The main focus for this paper will cover the following topics, with coffee as the basis: causes for shifts in supply and demand, how coffee supply and demand influence price, quantity,

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

20 million Americans drank gourmet coffee daily in 2003. As a result of this amount of coffee lovers that can’t start their day without coffee, Keurig. Inc had the idea that they should be able to brew their own perfect cup of coffee any time they need. People started paying $1.50 or more for a cup of gourmet coffee at coffee shops like Starbucks. This gave Keurig. Inc the idea of offering coffees in a single-cup proportion size to offices. After the placement of Keurig brewers, gourmet coffee sales increased by 40% in the U.S at-home coffee market. According to that big percent Keurig management wanted to develop an at-home single cup coffee brewer for coffee lovers. Keurig Inc. targets customers

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

These Paleolithic humans may have chewed caffeine containing leaves, seeds, roots, and bark which caused increased alertness (Weinberg). The history of caffeinated beverages dates back to 2737 B.C. in China (IFICF 3). According to legend, a man named Shennong discovered tea while sitting under a Camellia tree with a pot of boiled water. When dried leaves from the tree fell into the boiled water, he decided to take a sip and was delighted by how revitalizing it was (“The History of Tea”). Coffee originated much later in 575 A.D. in Africa (IFICF 3). On an Ethiopian plateau where red coffee berries grew, a man named Kaldi found that his goats became energized and restless after eating from a particular tree. When these berries were brought to the head of the local monastery, he made an energizing drink out of them. News of the berries spread throughout the monastery and eventually to the Arabian Peninsula (NCA). There, coffee was cultivated and public coffee houses, or qahveh khaneh, were created, turning coffee into a social drink (NCA). European travelers brought back stories of coffee and the mysterious beverage spread to Europe by the 17th century. Initially regarded as "the bitter invention of Satan", coffee was very controversial. However, it was soon approved by Pope Clement VIII, and coffee's influence grew (NCA). Coffee houses became the centers of socialization in Europe and coffee turned

There are several legendary accounts of the origin of coffee. The history of coffee, however, goes as far as the thirteenth century. It is believed that coffee came from Ethiopia in East Africa. Later on the fourteenth century it was cultivated by Arabs. Even though it is believed that coffee has been around since the thirteenth century the earliest credible evidence of drinking coffee is in the sixteenth century in the Sufi monasteries of Yemen (National Coffee Association). Coffee was first introduced to Europe in 1573 (UK Essays). It was first mention by a German physician when it started to be introduced among other African goods. When coffee was introduced to Europe it became widely acceptable among the rich and wealthy families. Coffee

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.

Nothing like the fresh scent of brewed coffee in the morning – “Starbucks” a well-known coffee house that is still growing and expanding their operations today is considered the number one specialty coffee retailer around the world and abroad. Therefore, the supply and demand for coffee is on the incline and is regarded as one of the most rapid growing organizations in the world. According to the National Coffee Association, adults between the ages of 18 and 39 are more likely to purchase coffee out-of-home, then older consumers (2016). Even coffee statistics conducted in 2016 indicates “50% of the population, equivalent to 150 million Americans, drink espresso, cappuccino, latte, iced/cold coffee” (E-Imports, 2016). Other statistics numbers show that an estimated of total Americans consuming coffee would be up by 1.5% and specialty coffee up from 20% in this year alone. Even the global consumption will increase by 12% over the next years. Therefore, a key question is how will the “law of demand” predict how the consumers will behave (Lorenzetti, 2016)? Namely, will the higher demand for coffee beans impact what the consumer at Starbucks will pay for a cup of coffee? Therefore, companies such as Starbucks should analyze and understand the microeconomic model to get a clear picture of the price elasticity, cost to produce, and the overall market to make the most effective business decisions and recommendations that will have an

In A History of Food, the author, Maguelonne Toussaint-Samat, comments how coffee was a luxury item that “only very high Arab dignitaries drank, as a tonic” (521). Coffee slowly made its way up to Mecca as a commodity for the common man in 1414 and by the end of the 15th century, the drink had spread into the rest of the Islamic world (Pendergrast 6). The drink was able to spread rapidly once it reached major port cities, like Cairo and Mocha along with the help of the Ottoman and Safavid Empires. It is not hard to see why the drink became so popular so fast, as it has numerous health benefits along with its enticing taste and aroma. Coffee stayed local in the middle east hundreds of years, as it didn’t become popular in Europe and the Western world until the mid-to-late 1600s. During this time, Middle Easterners has perfected their trade and style of coffee, mainly what is now referred to as “Turkish coffee” around the world and adapted coffee into their daily

The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.

Coffee beverages are extremely popular in the United States, as they represent 75% of all caffeinated beverages consumed in the United States (Reynolds, 2014). Coffee shops make up the fastest growing restaurant business in the United States (Reynolds, 2014). VR Coffee Café first year of sales is expected to be $850,000. We expect year two sales to increase 17.65% to $1,000,000 and year three to increase 20% to $1,200,000. We fully expect this large increase in sales because of two main reasons. First, we expect that our coffee shop will become increasingly popular in our community, due to word of mouth, increased store recognition, and increased store rating and positive feedback on social media apps like Yelp

The demand for coffee shops is born from the increased number of individuals seeking coffee brewed outside of the home. This creates a larger market for coffee shops. An increased amount of people are starting their mornings off by purchasing breakfast and a cup of coffee away from home (Tuttle 2014), more people are enjoying gourmet coffee (NCA National Coffee Drinking Trends 2015 Infographic), and younger generations are demanding more coffee and coffee drinks from coffee shops (Tuttle 2014, S&D Coffee and Tea inc. 2014, Statista 2015). Coffee shops must compete with at home coffee, work place coffee, and teas for the caffeinated beverage markets (LN 2015). Demand for coffee within different markets varies, and provides competition for coffee shops. Single cup coffee makers, increasingly qualitative instant coffees, and gourmet beans are all sources of competition that could satisfy the demand for coffee. However, coffee shops are becoming more ingrained in social

Any "Top List" is always subjective, in my opinion. There will probably be people in my town of Johnson City, Tennessee, who will disagree with the top 3 coffee shops that I have chosen. However, I think that these three independent coffee shops, which are all quite different, are exceptionally good. Beasley 's Southern Bistro Beasley 's Southern Bistro, located at 2203 McKinley Road in Johnson City (locals will remember the building as the old Klopman Mills), moved from its location on South Roan Street. It also changed its style a bit. The "old" Beasley 's was known for its home cooking, which it still offers; however, they have also expanded the menu and added some unique sandwiches (including a lobster sub) and, of course, various types of coffees. My husband and I were frequent visitors to the Beasley 's on South Roan and have followed them to their new place. I loved their regular coffee at the old location. I adore their vanilla cappuccino at the new location. There is nothing better than Eggs Benedict for breakfast and a large cup of cappuccino. You can order other flavors and lattes, as well. In addition, when you first walk into the old Klopman Mills, you will notice that it is being turned into a large building full of dozens of spaces for offices or small retail establishments. Also, in the large entryway, Beasley 's has set up comfy couches and chairs in front of a large stone fireplace where you can enjoy your coffee if you choose to skip the wonderful