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

M6 is the annotation given to the Air Defense version of the Bradley fighting vehicle. During the 1980s, at the height of the cold war coupled with the ever growing nuclear threat, the U.S. need to insure the defense of ground forces and critical assets from aerial threats became ever so real. Budgetary constraints placed a heavy burden on military planners as they fought congressional committees for a solution to provide a mobile air defense platform. Dilapidated equipment and talks of a Russian armored invasion of the U.S. mainland, created the inception of the Bradley Fighting Vehicle. A vehicle designed to battle the Russian MBT (Main Battle Tank) T-80 in head to head battle would suit the needs within the limitations set forth by Congress.

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).

The third opportunity is the billions of dollars that consumers spent on coffee. It was estimated that American consumers spent 74.2 billion dollars on coffee alone in 2015. This billion dollar industry represents an opportunity for investments and stock knowing the immense monetary impact of coffee on the American market. Knowing opportunity number 1 and the economic impact of coffee on American consumers, Starbucks should market to younger crowds to continue increasing dollars spent on coffee. This opportunity received a .08 weight while acquiring a 3 rating for above

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 ocean. Beautiful. A mystery. Bright. Those words made the perfect description of her. She was born September 15th, of the year 2000. She had hazelnut brown hair and her eyes were the brightest of blue. They were as mysterious and as beautiful as the ocean. She was as ordinary as the rest, no problems. Until she was 5. A terrible accident occurred. A virus had struck her in her throat when her family was on a trip away from their home, Orange County, New York, a small town. She had received the virus and was rushed to the hospital. The doctors said that the virus had damaged and infected her vocal cords. The only option was that she would never speak again. She grew up, never speaking. When she started school, she could never say her name,

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

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’

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,

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.

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

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.

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.

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