The reason SBUX and other coffee shops can open in such proximity is because (1) many coffee purchases are impulse. The impulse buyer would not bother if he/she has to cross the street to get the coffee. Have you ever been driving somewhere in some heavy traffic and chosen a restaurant/gas station because you didn’t want to cross over or u-turn? SBUX said that near proximity stores don’t canibalize as much as you’d think. (2) during peak coffee selling times (i.e. right before work, etc.,) the money they can make during that period is so good that it can sometimes pay for another store right next door. and (3) they are selling a place to sit, along with the coffee, IF the store is full then open another one or expand. The closer the better.
This understates it a bit. Starbucks was the first franchise _in history_ to exhibit reverse cannibalism: open a store across the street, and sales at the first one rise. The explanation lies in a powerful competitive advantage: taste. The more often you drink a starbucks, the greater the chance that you’ll prefer starbucks to Dunkin Donuts. This obviously feeds upon itself. (Similar to Coke and Pepsi: you currently drink what your parents fed you growing up.) So there’s obviously a huge first-move advantage here, which is why sbux loves opening stores. There may be a limit however: http://www.theonion.com/content/node/29030
Reverse canabalism? Hmmmm… I bet that happened like 3 times out of their 16000000 locations so they talk it up in their press releases.
HoldSideAnalyst Wrote: ------------------------------------------------------- > I’m curious for people’s reactions to this story: > > There’s a Caribou near my office that does pretty > well. It’s in a suburban area with lots of > offices, ergo lots of yuppies buying coffee. > There’s been some development in the area, and a > few new commercial developments are spouting up. > CBOU recently opened another store literally > across the street from the first. I can’t really > explain the setup, but it’s not like this is a > case of both sides of the street being really > busy. Turns out they opened the new store simply > to stop any other coffee shop from opening across > the street. This from a company that is currently > closing unprofitable stores because they expanded > too quickly. where i live theres two starbucks across the street form each other and they are both always busy
JoeyDVivre Wrote: ------------------------------------------------------- > Niblita75 Wrote: > -------------------------------------------------- > ----- > > They still have a ton of those > > sophisticated types lined up out the store > > whenever I go there. > > That would be wannabe sophisticated types who > really don’t know anything. i think you should distinguish the company from its costumers, there seems to be lots of wannabe’s to buy their product. starbucks has been around so long i doubt people are going to it just because its trendy.
Down here in Toronto they opened up a SPOT coffee in the Lobby of my building and I have to say that coffee aside the new lid technology is really key. If starbucks could utilize SPOTs lids, then things would almost certainly improve. What I think the real problem with Starbucks is that people got tired of having their expensive cars all mucked up with coffee on the dash and it’s amazing to me that Starbucks that proportedly king of coffee wouldn’t think to implement these lids. Willy
I like SBUX. Until Starbucks starts selling cheeseburgers or MCD starts selling $4+ cofee type drinks, I think PNRA and Cosi’s are better comparisons.
anyone else interested?
Starbucks Announces Fiscal 2015 P&L Modeling Conference Call Nov 04, 2014 09:00:00 (ET)
SEATTLE–(BUSINESS WIRE)–November 04, 2014–
Starbucks Corporation (NASDAQ:SBUX) plans to address high level fiscal 2015 financial and modeling-related questions on a conference call on Wednesday, November 5, 2014, at 6:00 a.m. PT. Scott Maw, Starbucks cfo, will host the conference call, which will be webcast and can be accessed on the company’s website: http://investor.starbucks.com. Please refer to the company’s website in advance of the call for reference material to accompany the discussion. A replay of the webcast will be available on the company’s website until end of day Wednesday, December 3, 2014.
wtf
http://racked.com/archives/2014/10/31/engagement-ring-ban-starbucks.php?utm_source=RackedFacebook
I don’t like how the SBUX employees in Seoul are fat and ugly/wonky looking. At the competition (Cafe Bene) all the chicks are HOT and smiling, err but the coffee isn’t as good. Basically SBUX hires the reject chicks, that can’t get hired at the local coffee shops. SBUX, please have some standards, this is not the USA!
Bumping thread where JDV posted? Priceless.
#blastfromthepast holy old thread
I only get drinks from SBUX when my birthday award pops up or I get the occasional regular coffee or iced tea, or the 50% off deals like for frapps in May.
I love my SBUX. Everyday.
In Germany, I honestly think that Starbucks makes the worst coffee of all the coffee chains available.
The brew has this burned taste (I honestly could do better by letting a filter coffee pot lay for 3 hours) and the expresso is way too strong and bitter.
It’s quite interesting to pull these threads “ex post”, however. Starbucks doomed in 2007 sounds ridiculous in hindsight.
Indeed. I think everyone on the internet should be required to keep a “calledit” book. One’s % correct score would be posted next to their avatar.
I love my egg nog latte and the occasional green tea frappuccino. Overall though, there are better places for coffee.
Please tell me this post was meant to be ironic.
I actually like the strong, deep flavour espresso. I like my coffee to reach up and punch me in the face. I can understand its not for everyone though. That’s all I drink, Americano, black, little sugar. Enjoying my morning beverage right now.
sbux makes the best iced coffeeeeeeeeeee so good
Its not deep flavor. Its a one dimensional burned taste. There are a million better places to get coffee.