1. Quality espresso
- Most stores have upgraded to the Swiss-made Mastrena, designed to make a high-quality espresso shot.
2. Fresh coffee
- Starbucks never serves coffee that has been sitting for longer than 30 minutes.
3. Customized coffee
- The chain claims to serve 87,000 different drink combinations.
4. Time efficient
- With two registers and a full staff, Starbucks can accommodate 220 customers per hour.
5. Consistency of brand delivery
- Starbucks baristas undergo over 30 hours of training on everything from techniques to the origins of coffee beans.
6. Best coffee
- Select stores have the top-of-the-line single-brew Clover coffee machine.
7. Good culture
- A healthy corporate benefits package offers health insurance for baristas who work at least 20 hours per week.
- Customers can pay with their smart phone and can earn stars that will go towards free drink and free food awards.
9. Internet service
- Starbucks provides free WiFi, with no restriction on laptop use.
- Starbucks makes it a goal to get each customer in and out in 3 minutes.
- The assumption that you can wing it. It is vital to do the proper research before opening up your own coffee business. If taking over an existing shop, you have to know the current business’ operations, successes and challenges. Whether starting from scratch or taking over an old shop, you have to know about the retail coffee business, how to open a business in general and how to acquire the necessary skills in accounting and management, the cost elements of your business, and how to brew coffee of course. In addition to researching prior to opening your shop, have a plan for after the opening. Set aside enough personal time for your business venture, sort out your personal and business finances, develop an overall business concept, develop a budget and establish a timeline. Failure to research and plan can result in a waste of time and loss of money. Additionally, not understanding all of the work that plays into owning a coffee business can lead to early burnout, damaging your energy needed to sustain a company.
- Failure to start small. Beginwith a narrow menu and add in more products and services as you move forward with your business. You can’t expect to start out making a large profit before your business has really taken off and word of mouth has spread, and putting too much money into products that end up expiring and being thrown away can kill your business early on.
- Not understanding your overall coffee shop concept. You can waste a lot of time and money if you don’t have a foundation to base all of your decisions off of. Determine what kind of business you want to be running, your budget, your location, your competition, and stay on track with your central concept as you move forward with decisions and success will follow. Always keep your brand image and company culture in the forefront of your mind so that you don’t put money in the wrong place.
- Not listening to your customers and taking their feedback to heart. Building a brand, marketing to your target demographic, building great business relationships, providing outstanding customer service, increasing profits and hiring the right people all start with creating a loyal customer following. Watch how customers respond to your business – how they react to your prices, to your menu items, to your service – and make adjustments accordingly to keep them happy. They will notice you making changes to accommodate them and their appreciation will pay off, literally.
- Overspending and overestimating. Commercial coffee equipment can be costly, and overspending on new shiny equipment that you don’t necessarily need can lead to massive debt and/or take away from funds you should be using to start up other aspects of your shop. On a similar note, you have to accurately estimate your cash flow so you know how much spending money you have on hand. Figure out your accounting methods and stay on track with your budget. If you overestimate how much cash you’ll be having flowing in, you’ll end up flowing right out of business.
Sources: https://guddina.wordpress.com/2013/10/15/4-ways-to-keep-a-coffee-shop-from-going-bankrupt/, https://coffeeshopstartups.com/top-reasons-coffee-shop-fail/
Brewed by forcing a small amount of nearly boiling water under pressure through finely ground beans, espressos are the foundation of coffee beverages.
Consisting of equal parts espresso, steamed milk, and milk foam, this is a classic favorite. It can be topped with grated dark chocolate or unsweetened cocoa powder to add character, and it can be made “scuro” with less milk or “chiaro” with more milk.
- Caffe Latte
Three parts steamed milk to one part espresso and topped with a layer of milk foam, this is a sweet delicacy commonly paired with cakes, cookies and bread.
- Caf au Lait
Equal parts brewed coffee and steamed milk, this is essentially a lighter, weaker version of the Caffe Latte.
A simple shot or two of espresso diluted with hot water, the result is a rich cup of coffee with a light layer of crema on top.
Sources: http://www.saratogacoffeetraders.com/saratoga-coffee-traders-blog/top-10-most-popular-coffee-shop-drinks, http://www.brownscoffee.com/popular-coffee-drinks/
- Starbucks intends to close down 150 of its stores in the U.S. during the 2019 fiscal year, due to weakening sales in the U.S. and in China. This is triple the number of stores it has closed in prior years on average. Most of the stores being closed are in urban parts of the country where rent and wages are high and Starbucks shops are in abundance.
- With news of the sizable closure of stores, Starbucks shares have fallen nearly 9% since the market closed yesterday, bringing a share of Starbucks stock to be worth less than $53. According to The Wall Street Journal, “If the slide continues, it could result in the lowest market close for Starbucks since November 2016.”
- Starbucks is not only taking steps backward by closing stores, but it also intends to slow down its growth, particularly the growth of its licensed Starbucks shops in retail stores such as airports and super markets.
- The CFO of Starbucks, Scott Maw, states that he plans for Starbucks to actually benefit from the slowed growth of its licensed stores so that it can focus more greatly on the company owned stores. This is because company owned stores facilitate introducing more products and pricing them more consistently.
- In the past 3 years, Starbucks has opened up over 2,000 new stores in the U.S., bringing its total to 14,300 U.S. locations. This is more than the number of McDonald’s locations in America, to give an idea of what a giant Starbucks is.
- Sales at Starbucks in the U.S. has been slowing in recent years, and the company reportedly expects 1% same-store sales growth in the current fiscal quarter, which is well below analysts’ expectation of 2.9% growth. Still, Starbucks has a plan for expansion and to increase of sales. Chief Executive Kevin Johnson plans to grow in the Midwest and South regions of the U.S., and to attract customers “by expanding the company’s ‘digital relationship,’ with customers.” Already, Starbucks is on the right track by opening up its mobile order app to all customers, not just rewards program members.
- Starbucks raised its quarterly dividend by 20% and plans to return $25 billion in dividends and buybacks to shareholders in the 2020 fiscal year. This is an ambitious $10 billion higher than its previously set goal.