Background Information
Starbucks is a well-known international coffeehouse chain established in Seattle, Washington. Their success is attributed to their offering of premium coffees and espresso-based drinks as well as their diverse range of pastries and snacks. Starbucks has become renowned for their distinctive atmosphere, and has grown to become a global enterprise with over 30,000 stores located in 77 countries. Starbucks is also an innovator in digital media. They operate a loyalty program, mobile application, and they even have an online store. Despite these extensive offerings, the primary focus of Starbucks remains on their unique and delicious coffee.
Price Range
The cost of a Starbucks coffee beverage depends largely on the type of drink and size. A Tall cup of brewed coffee generally costs around $2.45 regardless of whether you pick an Americano, Flat White, Cappuccino, etc. A Grande cup, which is bigger, typically ranges from $2.75 to $3.25, while a Venti cup is usually between $3.45 and $3.95. Incorporating espresso shots into the base beverage, like in a Latte, usually raises the cost about 50 cents. However, adding specific ingredients, like flavored syrups, can increase the cost further. Size upgrades, and additional syrup shots, often come with an extra fee. Additionally, certain types of frappuccinos and specialty drinks can cost up to five dollars. Generally speaking, a coffee from Starbucks costs about two to five dollars, depending on the size and certain modifiers.
Special Offers
Although coffee prices at Starbucks may seem somewhat expensive, customers can enjoy a variety of different savings opportunities. The Starbucks Rewards program allows people to receive special offers, exclusive discounts and free items by becoming a member. Customers can also use their rewards points to join other programs. Additionally, customers at Starbucks may be able to locate secret seasonal drinks or menu items, especially if they use the Starbucks mobile app. Furthermore, Starbucks periodically releases coupons and offers discounts, often on special occasions such as Halloween. Finally, many stores will occasionally offer buy-one-get-one-free deals as well as special beverages available exclusively to members of the Starbucks Rewards program.
Starbucks vs Competitors
When comparing the cost of coffee between Starbucks and their competitors, the difference is not very substantial. For instance, Dunkin’ Donuts tends to offer more reasonable prices on their coffee than Starbucks. However, quality varies from chain to chain. Although Starbucks is known for their quality excellence, independent coffee shops tend to produce drinks of comparable, even higher quality. Nevertheless, more expensive coffee drinks are often expected at independent shops compared to chain coffeehouses.
Source of Coffee
It is no surprise that Starbucks has a unique and delicious coffee since they carefully select their beans and produce them in an artful way. Starbucks sources their premium quality arabica coffee beans from over 30 countries around the world. From countries such as Guatemala, Colombia, Peru, Tanzania and others, the Starbucks’ flavor is compromised of blends of these beans. The company is known to have its very own laboratories where they test different combinations of beans and put them together to achieve that unique Starbucks taste. Starbucks blends its coffees differently based on size and product since each beverage requires its own level of intensity.
Roasting Process
The roasting process of the beans requires special care and observation. The process which is done in-house at Starbucks starts out with the beans being inspected at the Starbucks quality-control lab. Once approved the beans are set out for roasting. The company uses a traditional drum-roasting method for their beans. However, the roasting intensity and length of the roast varies depending on the type of beans being roasted as well as the specific blend being prepared. The beans are then immediately packaged in pressurized nitrogen to ensure that the flavor and aroma are protected during the shipping process.
Relationship with Coffee Producers
Starbucks is known to have a very intimate relationship with farmers and has a direct relationship with some of them. They have teams of agronomists, who not only help farmers produce their best quality beans but also provides education and guidance to help the farming community as a whole. Starbucks is known to aspire to go beyond fair trade with farmers and pay premium prices when possible. This is why many producers around the world religiously deliver their beans to Starbucks and have built long lasting relationships with the company.
Coffee Quality
The high quality of Starbucks coffees is the primary reason why customers return and the company’s beverage prices are higher than their competitors. Besides the careful selection of beans and their roasting process, Starbucks makes an effort to hire qualified baristas, which participate in continuous and rigorous training. These individuals are well versed in brewing methods and understand each bean’s unique flavor traits. Starbucks partners with exceptional roasters and suppliers to offer quality products that live up to the company’s promise. Furthermore, Starbucks offers a wide selection of craft beverages to reflect the flavors of their different regions.
Price vs Quality
When it comes to Starbucks and their prices, customers are ultimately paying for quality. Even though each cup of coffee may fluctuate in price, customers are still assured to receive a quality cup with every visit. Starbucks does not compromise on their standards, and the focus on quality is evidenced through their results. Customers are willing to pay for products that exceed expectations. For example, the vast majority of Starbucks’ drinks are handmade and organic options are an option, which prevents some of the negatives associated with pre-packaged, processed foods. Starbucks is also known to support other organizations and communities, giving consumers the item of philanthropic efforts as a bonus.
Environmental Impact
In terms of environmental impact, Starbucks is committed to sustainability initiatives in many aspects of the business. From a water and energy standpoint, Starbucks is actively reducing its environmental impact. The company is also a leader in the plant-based milk field and has fully embraced the revolution by offering alternatives to their customers. In addition, Starbucks is committed to waste reduction, mitigating climate change, and protecting the environment through the packaging of materials, the sourcing of raw materials, and a variety of programs around the world.
Customer Relationships
Ultimately, the prices of Starbucks’ coffee beverages reflect the attention to quality, sustainability initiatives and customer relationship. As previously mentioned, Starbucks has done a tremendous job in creating a personalized experience for consumers. They have built loyal relationships with many of their patrons and strive to provide a sense of community. Customers look forward to their coffee from Starbucks in part due to the friendly dialogue that often occurs between the store personnel and customers. Furthermore, the coffeehouse chain is a go-to destination for many people seeking a sense of social connectedness due to its pleasant atmosphere.
International Expansion
In addition to its environmental and customer-oriented initiatives, Starbucks has greatly expanded its global footprint. Their international expansion has enabled customers around the world to enjoy premium coffee beverages, local experiences, and a superior customer experience regardless of where they live. Starbucks has also launched initiatives such as training programs and social accountability initiatives to help bolster their communities. Starbucks’ unique program offerings, whether it is their rewards program, sustainability initiatives, or their international expansion, demonstrate their commitment to quality and customer satisfaction.
Employee Perks
Another way Starbucks sets itself apart from its competitors is by offering an array of employee perks. Employees enjoy tuition reimbursement and comprehensive health care. Moreover, Starbucks also provides stock options and an expansive 401(k) program for partners, which is unheard of for most fast-food establishments. Furthermore, associates are rewarded for their hard work and dedication with profits sharing, vacation pay and bonuses. Starbucks even has an Employee Assistance Program that provides a variety of resources for those undergoing difficult times.
Technology
In addition to its customer-first and employee-centric focus, Starbucks is also a frontrunner when it comes to technology. The company provides an extensive mobile and digital app experience, allowing customers to manage their purchases, view rewards balances and interact with their favorite store locations. The mobile app also provides exclusive offers, special discounts and other benefits to cardholding customers. Starbucks also offers a loyalty program that rewards regular customers with discounts and free gifts.
Merchandise
The company also offers a range of Starbucks merchandise and apparel online and in stores. From reusable tumblers and mugs to sweatshirts and accessories, customers can find nearly anything they need or want to show their Starbucks pride. Besides being aesthetically pleasing, Starbucks’ merchandise items tend to be environmentally conscious. For example, the iconic tumblers are made from BPA-free plastic and are designed to be reusable. In addition, the company is actively working to reduce their packaging from all merchandise and beverage items.
