Posted on

10 Ways Starbucks Keeps Their Customers Coming Back

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.

8.     Convenience

  • 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.

10. Efficiency

  • Starbucks makes it a goal to get each customer in and out in 3 minutes.
Posted on

5 Things to Know about Green Coffee

  1. Green coffee beans are coffee seeds of Coffea fruits that have not yet been roasted. As roasting reduces the levels of chlorogenic acid in coffee beans, green coffee beans have higher levels of this chemical than other coffee beans, which is thought to have health benefits, aside from usual the boost in energy levels and alertness from beloved caffeine.

 

  1. Green coffee beans are rich in kelp, which is loaded with essential vitamins and minerals that help maintain the levels of nutrients in the body. This enhances the body’s metabolism to burn excess fat and calories.

 

  1. Green coffee beans are highly effective in enhancing the immune system because they contain powerful free-radical busters that help the body to eliminate toxic elements.

 

  1. Green coffee beans are also rich in antioxidant agents, fatty acids and esters such as arachidic acid, linoleic acid and oleic acid, which nourish and moisturize skin. Say hello to green coffee and goodbye to skin sagging and discoloration!

 

  1. Green coffee extract also boosts the growth and thickness of hair strands to prevent female hair loss.
Posted on

5 Stats on the U.S. Beer Market

  1. In 2016, the U.S. was the second largest country in worldwide beer production with an amount of 221 million hectoliters, second only to China. In the year 2017, 4 million barrels of beer were sold by the U.S. beer industry – that equals 2.9 billion cases of 24 12-ounce beers.
  2. There are 6,372 breweries in the U.S. as of 2017, a 16% growth from the 5,491 breweries in 2016.
  3. As of 2017, the retail value of the U.S. beer market is $111.4 billion, with craft beer sales accounting for 23% of the market at $26 billion.
  4. In 2017, S. beer volume sales dropped 1.2%, but craft brewer sales grew at a rate of 5% by volume, reaching 12.7% of the U.S. beer market by volume.
  5. The market share of brewers as of 2017 of the competitive U.S. beer industry falls at 41.6% for Anheuser-Busch, 24.3% for MillerCoors, LLC, 8.9% for Constellation, 3.8% for Heineken USA, 2.3% for Pabst Brewing, and the remaining 19% is all other domestic and imports.
Posted on

5 Stats on the U.S. Coffee Market

  1. Approximately 150 million Americans drink 400 million cups of coffee per day– more than 140 billion cups per year– making America the global leader of coffee consumption.
  2. According to the Huffington Post, 31% of coffee drinkers consider coffee the most important and first part of their morning routine, and 52% would forgo their morning shower if necessary to make time for their coffee.
  3. According to the National Coffee Association (NCA), the U.S. coffee market has an estimated retail value of $48 billion.
  4. Specialty coffees represent a 37% volume share of the U.S. coffee market and are considered the highest quality coffee in the world, according to the Specialty Coffee Association of America. As more efforts go into producing specialty coffees, sales of such comprise a nearly 50% value share of the U.S. coffee market retail value.
  5. In 2018, roast coffee is estimated to amount to $9.62 billion in revenue and instant coffee is estimated at $3.31 billion in revenue. U.S. sales are predicted to remain overall stagnant and these revenue amounts fairly unchanged between now and 2021, according to Statistica.
Posted on

Which Coffee Chains are Growing? Which are Falling?

Growing:

  1. Starbucks. 2018 is positioned to be a big year of growth for this coffee giant. Its high-end Roastery brand is largely expanding; it is expanding its customer loyalty program and mobile app; it plans to continue its highly successful refreshment category of drinks; a new Starbucks is opening in China every single day; it is boldly building its European footprint by opening a shop in Milan; and it is diversifying its menu by investing in Princi, a fancy Italian artisan bakery chain, to bring freshly baked bread and pastries to select locations. Yes, Starbucks is currently at risk of missing its growth targets for the second straight fiscal year and is closing down a number of locations. Still, the company is optimistic about its growth due to the aforementioned plans, and though its growth has slowed, it is still growing, and in the second quarter of 2018, Starbucks pushed forth and outsold its expectations for sales.
  2. Dunkin’ Donuts. A plan to open 9,000 new stores, doubling the amount of Dunkin’ store locations, forecasts large-scale growth for Dunkin’ Donuts. First, the brand is planning to scale down, pare down its menu, refine a new business concept, and then remodel stores, bring in new equipment, and sell more food in non-Dunkin’ locations such as supermarkets. It also plans to focus on building more locations with drive-thrus for quick and convenient coffee pick-up en route to work. In addition, there is talk of opening smaller stores for pick-up of orders customers place in advance using the pre-ordering options for food and beverages on its mobile app.
  3. Tim Hortons. As one of the fastest growing franchises in the U.S., Tim Hortons is expanding its menu to grow morning, lunch, and snacking options, adding more stores in convenient locations for where its customers live and work, and renovating its restaurants. In addition to ramping up its growth in the U.S. by following a plan made in 2014 to add 300 new stores by this year, Tim Hortons also plans to add 500 locations in Canada by this year.

 

Falling:

  1. Costa Coffee. Britain’s biggest coffee shop chain is suffering a notable decline in sales and consumer demand. It explains that it has taken a big hit from the structural shift to online shopping, which has decreased the traffic to high street retailers and thus high street locations of Costa Coffee, where many of its UK shops are located. UK coffee drinkers seem to be turning away from large coffee chains in favor of artisan alternatives.
Posted on

5 Reasons Coffee Shops Lose Money

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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/

Posted on

5 Best Selling Coffee Drinks

  1. Espresso

Brewed by forcing a small amount of nearly boiling water under pressure through finely ground beans, espressos are the foundation of coffee beverages.

  1. Cappuccino

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.

  1. 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.

  1. Caf au Lait

Equal parts brewed coffee and steamed milk, this is essentially a lighter, weaker version of the Caffe Latte.

  1. Americano

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-drinkshttp://www.brownscoffee.com/popular-coffee-drinks/

Posted on

5 Facts on the Global Growth of the Coffee Market

  1. The global coffee market is expected to have a CAGR, compound annual growth rate, of 5% from the years 2017 to 2022.
  2. Annual world coffee consumption, according to the International Coffee Organization, has increased from 148,889,000 60-kg bags to 157,858,000 60-kg bags from 2013/14 to 2016/17. That is a LOT of kilograms of coffee. And this change represents a 2% CAGR, which helps put our fact #1 into better perspective.
  3. Coffee has grown to be the second most traded commodity in the world, after oil. Clearly, the world’s priorities go: 1) essential petroleum products, 2) caffeine.
  4. From 2008 to 2016, daily consumption of coffee among 18 to 24-year-olds increased from 34% to 48%, and daily consumption among 25 to 39-year-olds increased from 51% to 60%.
  5. Global coffee supplies are expected to be in surplus in the 2018/19 season, but prices are expected to continue increasing as companies restock their inventories. Retail sales of coffee are predicted to drop from 766,000 metric tons to 764,000 from 2017 to 2018, and possibly remain stagnant through 2022, according to Euromonitor International. This would be due to improving economies promoting a reduction in home brewing of retail coffee and an increase in café purchases.
Posted on

5 Facts on the Global Growth of the Coffee Market

  1. The global coffee market is expected to have a CAGR, compound annual growth rate, of 5% from the years 2017 to 2022.
  2. Annual world coffee consumption, according to the International Coffee Organization, has increased from 148,889,000 60-kg bags to 157,858,000 60-kg bags from 2013/14 to 2016/17. That is a LOT of kilograms of coffee. And this change represents a 2% CAGR, which helps put our fact #1 into better perspective.
  3. Coffee has grown to be the second most traded commodity in the world, after oil. Clearly, the world’s priorities go: 1) essential petroleum products, 2) caffeine.
  4. From 2008 to 2016, daily consumption of coffee among 18 to 24-year-olds increased from 34% to 48%, and daily consumption among 25 to 39-year-olds increased from 51% to 60%.
  5. Global coffee supplies are expected to be in surplus in the 2018/19 season, but prices are expected to continue increasing as companies restock their inventories. Retail sales of coffee are predicted to drop from 766,000 metric tons to 764,000 from 2017 to 2018, and possibly remain stagnant through 2022, according to Euromonitor International. This would be due to improving economies promoting a reduction in home brewing of retail coffee and an increase in café purchases.
Posted on

7 Things to Know about Starbucks Closing 150 Stores

  1. 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.
  2. 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.”
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.

Source: https://www.wsj.com/articles/starbucks-to-close-more-stores-amid-glut-of-coffee-shops-1529448017