Rashi Mehta
Starbucks began from a single location Seattle, Washington has now experienced extraordinary growth and stepped its foot in almost every country with its coffeehouse chain. Starbucks has become a second home for people to spend time after a busy day, enjoying multiple types of coffee.
The company has invested heavily in its brick-and-mortar locations by expanding its facilities, food options and development of its infrastructure.
What makes its coffee different?
Well Starbucks the well renowned coffee shop is famous and different because of its unique and rich flavored taste. Starbucks uses premium beans, expert roasting techniques, consistency and some unique blends of flavor. It spends a lot of energy and time sourcing the finest beans from regions with high quality for eg, America, Africa and Asia that makes its taste unforgettable and leaves a huge impact on the consumers. Not only do they spend time sourcing beans but also in the roasting process which adds freshness in their coffee.
Starbucks offers many specialties that give consumers a reason to become a fan, from light and fruity blend to bold and dark roasts, customization options that allows them to alter their drinks and evolving flavor makes the Starbucks a groundbreaking brand.
Who are its competitors?
It is obvious that a renowned brand faces difficult challenges and competitors from numerous players in the market. It has competitors such as McDonald’s, Dunkin’ Donuts, Tim Hortons, McCafe, Costa Coffee, The Coffee Bean and many more.
Consumers have plenty of options that can provide them coffee at cheaper rates. Companies like McDonald’s and Dunkin’ Donuts provide a wide variety of beverages at lower prices than Starbucks but still Starbucks has maintained its strong position in the market with different pricing, promotion, production and location.
Despite having numerous rivals, it has maintained to earn $32.914 billion revenue in 2022 and plans to open 55,000 new stores by 2030.
Affected by COVID-19
Starbucks is also affected by the COVID-19 like it did to other brands and retailers. On March 4, 2020, Starbucks paused the use of personal cups and restricted business travel. Eventually after eleven days, Starbucks temporarily moved to primarily drive-thrus only for the United States. Due to this its global store sales declined upto 14% and net revenues dropped upto 11.3% from 2019 to 2020.
Nevertheless in 2021 it came back with a stronger base and increased its store sales globally by 20% and a 22% increase in sales across North America. Its net revenue increased 24% to $29.1 billion for the year. Till the end it has risen its trading shares upto $116.97 times.
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