Exploring The Coffee Shop Industry

Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).

Despite Peet’s Coffee and Tea being a corporate company, and the amount of stores it has produced, the goals and ambitions have not changed much. Coffee beans and tea’s are still the main focus of Peet’s and where they get most their revenue from. Bill Lilla, Peet’s executive vice president, said his company ensures quality through long-term relationships with growers, and by paying them more than the going rate. On the other hand, Starbucks Coffee insists their size has not affected quality, but it is hard to believe when their size is above and beyond the thousands. As the saying goes, too many cooks ruin the stew, and in this case, Starbucks would be the cooks, and its coffee and early aspirations are the

Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.

The first opportunity is that over 50% of eighteen year olds and older drink 3 or more cups of coffee per day in the United States. This group of coffee drinkers consists predominately of college students and career professionals who adding the morning cup of joe to their study time or work schedule. Currently in the coffee industry, competition is minimal for Starbucks, which has allowed Starbucks to capitalize on one of the biggest industries in the world behind crude oil. This

By 2003, the number of retail specialty coffee shops, cafes, kiosks, coffee carts, and roasters in the United States reached over 17,000, equating to nearly $9 billion in sales. According to the Specialty Coffee Association of America, 16 percent of adults in the United States drink coffee from one of these specialty outlets daily. (“Organo Gold”, 2008).

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

Research showed that 54% of the Americans over the age of 18 drink coffee everyday and 62% of the regular coffee was purchased from a coffee shop, rather than homemade. For corporation coffee house chain, Dunkin’ Donuts is developing very well in home base country and has its chains everywhere including Asia. That is why it is chosen to study within this industry for its financial performance.

Coffee, a cup of Joe, Java or brew, it goes by many names. It can be your morning jump-start or even used as an afternoon pick me up, to be enjoyed alone or with the company of others. It is a drinkable source of energy that is enjoyed in the United States and in many other places around the globe as well. It’s no wonder that coffee is such a popular commodity. Companies such as Starbucks and Peet’s Coffee have revolutionized the coffee shop industry in the United States by making it easy and convenient for consumers to purchase single-serving cups of coffee on a regular basis. Not only is the service quick and convenient, but it also allows consumers the ability to personalize their drinks to make it to their desired preference, making it a more enjoyable experience rather than just having a cup of instant coffee at home. In this paper, I will be exploring the coffee shop industry, which will be defined as firms who sell single-serving cups of coffee to their consumers.

THE MARKET In the competitive world of the coffee industry — and any industry for that matter — it’s crucial for companies to have a clear understanding of what they do best, and where they can be the best. Dunkin’ Donuts has defined its strategic heartbeat as the everyday, easy coffee stop that inspires rituals that revive. In other words, Dunkin’ Donuts provides food and drink that’s fast, fresh, and affordable — for busy people, leading busy lives. These days there is an incredible interest across the country in premium coffee. The average consumer is now demanding what Dunkin’

Just like American’s the British love their coffee. In fact coffee is the most popular drink worldwide.According to the National British Coffee association, the café culture is rising in popularity with 80% of people who go to coffee shops doing so at least once a week. According to the Short List, a popular UK magazine, you can not even walk four strides without coming to a new coffee shop. Daily Mail, a popular online newspaper, states that coffee is quickly gaining popularity even over the nations iconic drink, hot tea. Due to the rising popularity of chain coffee shops, the nation is drinking almost two and a half cup of coffee for ever one cup of tea. The market is also being dominated with the sales of specialty drinks. For these reason, it is not surprising that coffee retailers are flourishing.

2. 1. Industry Overview and Analysis: Dunkin ' Donuts is America 's most loved throughout the day, ordinary stop for espresso and prepared merchandise. Dunkin ' Donuts is a business sector pioneer in the hot customary/decaf/enhanced espresso, frosted espresso, doughnut, bagel and biscuit classes. Dunkin ' Donuts has earned the No. 1 positioning for client dedication in the espresso classification by Brand Keys for a long time running. The industry is now forecasted to grow over the next five years, with a billion revenues in the US. This growth would be mainly driven by an improving economy,increase in consumer confidence and expanding menu offerings within the industry. Dunkin’ Donuts dominates the industry with a market share of 36.7% and other competitors like McDonalds, Costa Coffee,

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.

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

Beginning in 1971 with only one shop in Settle’s historic Pike Place Market for coffee and tea, Starbucks has managed to become one of the most successful companies in the world. It has become number one in the coffee industry. As of June 2012 Starbucks owns 19,763 coffee shops in 59 countries which includes 12,848 in the United States, 1,264 in Canada, 973 in Japan, 778 in Great Britain, 621 in China, 441 in South Korea, 350 in Mexico and 269 in the Philippines. Offering to its consumers’ different coffees with unique flavors, tea and beverages, including food

Abstract this study focuses on the unique coffee drinking culture, the specialty coffee industry, and the behavioral patterns of coffee drinkers. Coffee drinking in specialty coffee shops is compared with coffee drinking behavior at home, in school or in the office. the results are based on two consumer surveys, each involving three hundred respondents. One survey was conducted among current in-store coffee shop customers and the other among consumers aged sixteen to thirty, randomly picked among store/mall visitors, residential subdivisions and offices.