»Click here to calculate your site FeedRank Today«
FeedRank, a newly developed algorithm for ranking RSS feeds only on RSSMicro
Click here to learn more
 1/10 Low --- www.theracetothebottom.org http://www.theracetothebottom.org/home/rss.xml
Sunday, June 22, 2008 --- 77 days ago http://www.theracetothebottom.org/home/starbucks-social-responsibility-and-profi
| Starbucks is in trouble. Per store earnings are falling. Competition is on the horizon, with McDonalds planning to insert baristas into its 20,000 franchises. Starbucks coffee, as a commodity, will find the competition from McDonalds stiff, with the fast food giant likely to be able to make high quality coffee drinks at competitive prices in often more convenient locations. Starbucks has become a commodity. 80% of the orders are consumed off premises. In other words, most people coming into Starbucks are not coming in for the experience. The company seems to recognize the consequences of this approach, deciding to expand more rapidly overseas where the statistics are the reverse. 80% of orders are consumed on premises . In foreign countries, where homes and apartments are smaller and open spaces at a premium, Starbucks likely provides a meeting place that causes people to collect there and, concomitantly, buy and consume Starbucks products. This is not true in the United States. As we have noted, Starbucks is increasingly an outlier in the US because it does not offer free Internet access (Peaberry's in Denver does, Caribou Coffee does, so does almost every independent coffee shop I've entered). This discourages those ubiquitous laptop users from planting themselves in the shop and buying product throughout the day. Do a small survey. Go into a variety of coffee shops (including Starbucks) and count the number of open lapt ... |
|
|
Recent Posts
|
|
|
Facebook Del.icio.us Digg StumbleUpon Reddit Google
Anytime
