starbucks industry analysis Essay Example
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 experienced a major slowdown due to the economic downturn. After having an average annual rate of 0.9% over the last five previous years, it is estimated that revenue will grow on average of 3.9% annually. In 2014, industry revenue is expected to continue its resurgence with a jump of 4.1% to total 30.2 B.
There is significant price-based competition within this industry; however, coffee, snack and other quick-service establishments also compete on the basis of location, food quality and consistency, style and presentation, food range, variety and service. Starbucks and Dunkin brands make up more than 60 % of market share, they have a considerable role in determining trends in the industry.
Customer Analysis
The most devoted coffee drinkers range from the ages of 25 to 45 years old. They are typically well- off educated adults or affluent young adults. Baby boomers have been the driving force behind the success of coffee shops. However the appeal of specialty coffee suits a diverse adult demographic, college students included. On a larger scale, companies also sell coffee beans wholesale to commercial customers, such as restaurants and grocery stores.
Even with society spending their disposable income more cautiously than in
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 experienced a major slowdown due to the economic downturn. After having an average annual rate of 0.9% over the last five previous years, it is estimated that revenue will grow on average of 3.9% annually. In 2014, industry revenue is expected to continue its resurgence with a jump of 4.1% to total 30.2 B.
There is significant price-based competition within this industry; however, coffee, snack and other quick-service establishments also compete on the basis of location, food quality and consistency, style and presentation, food range, variety and service. Starbucks and Dunkin brands make up more than 60 % of market share, they have a considerable role in determining trends in the industry.
Customer Analysis
The most devoted coffee drinkers range from the ages of 25 to 45 years old. They are typically well- off educated adults or affluent young adults. Baby boomers have been the driving force behind the success of coffee shops. However the appeal of specialty coffee suits a diverse adult demographic, college students included. On a larger scale, companies also sell coffee beans wholesale to commercial customers, such as restaurants and grocery stores.
Even with society spending their disposable income more cautiously than in