coffee business strategies

Samantha Oller of CSP Magazine (Convenience Store Petroleum) writes an insightful article about Starbucks market presence and continued strategy for expansion in their September edition:

They say the allure of Starbucks’ coffee is so powerful that the sheer number of customers driving out of their way for a morning fix has increased the duration of the a.m. commute nationwide, contributing to air pollution and traffic congestion.

They say that Starbucks’ clout is so strong that it can dictate which businesses

open up near its locations, and if you’re a rival coffee chain—well, best look for another neighborhood.

They say that wherever a Starbucks opens, neighboring coffee shops often
see a lift in sales after consumers realize they can get better quality and value
for their $5 elsewhere. With 14,000 locations and $8.6 billion in revenue worldwide, Seattle-based Starbucks Corp. has attained the colossus status achieved only by companies
such as McDonald’s. In the process, it has generated a host of rumors and the full range of human emotion—love, fear,hate, admiration—from competition and consumers alike.

What they all can agree on: Starbucks sells.

Read my quotes on the subject throughout the article.

The full article is available in PDF format, here: Starbucks Throws Its Weight