Coffee’s Popularity
Coffee, for many, can be a central part of life and culture. Whether you’re an early-bird office worker or a student who has had one too many all-nighters, a solid cup of joe can be the fuel that keeps society running. There’s no denying the substantial and significant part coffee has played in culture. In fact, researchers from the University of Birmingham suggest that our love affair with caffeine predates the written word, with archaeological evidence of early-version coffee-drinking going as far back as 1000BC.
Even in the modern world, coffee has serviced a large part of society, with the typical European drinking a staggering 144 litres of the caffeinated beverage each year. As of 2019, the global coffee market was valued at US$111.2 billion.
Starbucks’ Popularity
What might be more of a recent development is the specific product being attained. Starbucks, one of the biggest coffee brands in the world to-date, saw its first store opening in 1971, in Seattle, Washington. Starbucks has brewed itself a significant corner of the coffee market and with over 33,000 stores in the world began reporting a net-income of US$3.8 billion in 2020.
Since the beginnings of Starbucks, the brand has been successful in creating its own culture and identity, engaging new customers and reaching out to coffee drinkers through different products. Starbucks has evolved from offering just basic coffee, to offering coffee products from different countries, as well as specialty pastries and signature sandwiches, creating a special Starbucks experience with ‘coffee-ambience’.
How Much Coffee Does Starbucks Sell?
Starting in a single store back in 1971, Starbucks has now become the biggest coffee chain in the world, serving almost 120 million customers weekly in countries across the globe. Starbucks’ venture into international markets has made it an international powerhouse in the coffee industry. As shown in the following chart, in 2019 the company reported a net income of US$26.5 billion:
The yearly revenue numbers don’t come close to what the coffee-giant produces on an average day. According to Starbucks, its stores serve an impressive number of nine million customers each day, with the company reporting approximately 2.4 billion transactions each year. With the average customer spending around US$4 on each purchase, this equals roughly US$36 million each day, with further growth on weekends.
Keeping Pace With Growing Numbers
With continuing growth and an eager global customer base, how does Starbucks manage to keep up? What makes them different from other coffeehouses? As discussed by Joseph A. Michelli and Paul Yost in their book ‘The Starbucks Experience’, Starbucks succeeds by creating a unique, stand-alone store experience in each location. Employees are key when it comes to the success of each Starbucks, making and serving the coffee that has become an international favorite.
Member satisfaction is the leading priority for the company and the way in which Starbucks staff treat the customer is paramount in delivering the Starbucks experience. Celebrity baristas, a renowned 24-hour customer service and free Wifi have all become associated with the Starbucks brand. Starbucks is praised for its ‘buzz creation’, and reputation in the market.
Competing In The Market
When comparing Starbucks to some of its competitors, it’s not just size that matters. In 2019 Starbucks had a total global market share of 19.2%, with Dunkin Donuts following close behind with a global market share of 16%. The global market still remains split, with a lot of regional and local competition limiting Starbucks’ market share, suggesting that there is still enough space for both companies and other independent coffeehouses to co-exist.
Good Practices and Global Impact
Starbucks is also praised for its commitment to environmental protection, animal welfare and ethical coffee buying standards. Starbucks has been the butt of many coffee-related activist campaigns, from low-payment accusations to marketing coffee using endangered animals, with the company facing criticism for acting unethically. Others view Starbucks as an example of hard work, dedication and passion for the environment.
Conclusion
Starbucks is more than a coffee chain. It’s an experience; one that has been created through hundreds of stores and millions of coffees being served across countries and continents. This coffee giant has revolutionised the industry with its drive to serve higher-quality, better tasting coffee and to make sure each customer receives the same, outstanding Starbucks experience.
