History
In 1971, Starbucks opened its first store in Seattle’s Pike Place Market. Since then, Starbucks has grown to become a global phenomenon. From selling roasted coffee beans and accessories, to becoming a coffee house behemoth with over 30,000 stores worldwide and many more still to come. Starbucks have developed into a lifestyle and a brand. This global brand is the largest coffeehouse company in the world, with headquarters in Seattle and the world’s biggest coffee chain with over 20,000 stores globally.
Coffee Bean
Coffee Bean & Tea Leaf is a privately held American coffee chain founded in 1963 in Southern California. It operates more than 1,000 stores in the United States, South Korea, Vietnam, Thailand, Hong Kong, Singapore, Malaysia, United Arab Emirates, Philippines, and several other countries. Coffee Bean & Tea Leaf is considered a rival to Starbucks, though the two chains take different approaches to the sale of its products. Coffee Bean & Tea Leaf has a heavier focus on its retail locations, rather than its drive-thrus and other services.
Ownership
Starbucks does not actually own Coffee Bean & Tea Leaf, but the two companies do have a significant relationship. The two companies entered into a partnership in mid-2019, allowing them to collaborate on new products. The two companies have since collaborated on several initiatives, including a loyalty program and the launch of a number of new products.
The joint venture between the two companies provides an array of benefits to both companies. By working together, the companies can leverage their respective expertise and capital to increase their collective revenue and profits. The partnership also enables them to cross-market and promote their products across different platforms, and to develop new products that can both benefit from the partnership.
Revenue
Starbucks’ 2019 annual report shows that the coffee chain saw $26.5 billion in total net sales, with nearly 95 percent of those sales coming from its retail stores. Coffee Bean & Tea Leaf reported revenues of $1.87 billion for 2018, with about 88 percent coming from retail outlets.
Marketing
Starbucks has leveraged its size and marketing capabilities to remain a major player in the coffee chain market. According to a 2019 study, more than half of all American coffee drinkers said they chose Starbucks over other brands. The marketing strategies employed by Starbucks include digital and experiential marketing, in which the company focuses on providing an experience for customers. Starbucks does this by creating unique products and offering events to create an immersive experience for customers.
Coffee Bean & Tea Leaf has taken a different approach to its marketing by focusing more on its stores and retail outlets, rather than large campaigns. The company has outfitted many of its stores with art and furniture, creating a unique atmosphere that customers respond to. The company also has a robust online presence, leveraging social media platforms to offer promotions and build customer loyalty.
Price
Coffee Bean & Tea Leaf is considered to be more affordable than Starbucks, with lower prices on its brewed coffee and tea. The company also offers deals on its coffees and teas, allowing customers to purchase more for a discounted price. Starbucks’ prices are higher than Coffee Bean & Tea Leaf, but the company has a greater variety of drinks and food items. Starbucks also offers discounts for members and rewards programs, which Coffee Bean & Tea Leaf does not have.
Consumer Preference
Though both chains are comparable in many ways, there are some subtle differences that consumers may prefer. Starbucks has a wide variety of food and beverage items, making it a one-stop-shop for customers. Coffee Bean & Tea Leaf has a smaller selection of food items, making it better suited for coffee and tea connoisseurs. In terms of atmosphere, Starbucks stores often feature comfortable seating areas, while Coffee Bean & Tea Leaf stores are often more intimate and cozy.
Packaging
Starbucks’ packaging reflects its modern and upscale atmosphere, utilizing sleek and stylish designs for its retail and to-go containers. Coffee Bean & Tea Leaf has a more casual packaging aesthetic, featuring bright colors and fun designs for retail and to-go containers.
Eco-Friendly Initiatives
Starbucks and Coffee Bean & Tea Leaf have both taken measures to reduce their environmental impact. Starbucks has implemented a number of initiatives, such as recycling and composting, as well as sustainable sourcing initiatives. Coffee Bean & Tea Leaf has taken a similar approach, offering customers reusable cups and launching an Eco-Friendly store pilot in 2019.
Employees
Employees at both Starbucks and Coffee Bean & Tea Leaf have similar experiences, with both offering competitive wages and benefits. Both companies have established employee engagement activities and provide ample training to ensure that employees are knowledgeable on the company’s products and services. Starbucks employees are often equipped with more technological tools, such as tablets and other technology, which allows them to better serve customers.
Conclusion
In conclusion, Starbucks and Coffee Bean & Tea Leaf both offer high-quality products and services to their customers. Starbucks has the larger market share, but Coffee Bean & Tea Leaf has a more intimate atmosphere and more affordable prices. The two companies have a partnership allowing them to collaborate on initiatives, which has been beneficial for both parties.
