Essay on starbucks industry analysis

1564 WordsSep 21, 20137 Pages
Starbucks Industry Analysis The coffee and snack shop industry includes thousands of mom and pop shops to a small number of franchised businesses. The U.S. Census Bureau estimates that nearly half of this industry, 48.0%, of establishments are small business owners with nine or fewer employees. The top four players in the industry are Starbucks Corporation, Dunkin’ Brands Inc., Krispy Kreme Doughnut Corporation and Einstein Noah Restaurant Group, which currently dominate 64.8% of the market. When it comes to the restaurant industry, many companies have seen their profits and financials in whole decrease. One segment of this industry, the coffee and snack shop industry, experienced the same. Since 2009 players in this sector have…show more content…
Convenience food locations are plentiful and well-advertised, and it is because of this that they continue to compete within the coffee and snack shop industry. Healthy Eating The specialty coffee industry is modifying the products that it offers, as well as its services. With consumers demanding healthier eating options, it is up to the companies in this industry to decide which route they will go. Consumers are now more aware of the health issues that are associated with fatty foods and are going out of their way to avoid them. This includes spending the extra money on healthier alternatives. Many chains have already introduced their new healthy alternative, with more in the works as they look to expand their product lines. Major operators such as Starbucks, have already expanded their profits by providing a variety of menu options, including oatmeal and breakfast sandwiches. While major fast food chain McDonald’s has increased their hand in the stake by expanding their premium coffees. Coffee Consumption Another force that may affect the industry in the next five years is that per capita coffee consumption is expected to decrease slowly in this year. This poses a potential threat in the fact that coffee shops and other establishments that serve coffee are a major portion of the industry revenue. Economic Forecast Industry analysts are expecting that in the five years to 2018 revenue will increase at an average
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