This article covers the Top Starbucks competitors that one should know of.
An American global coffee company based in Seattle, Washington. It was founded in 1971 as is known as the most famous coffee in the world. Starbucks is the largest coffee-house company in the world and operates 30000 Stores worldwide.
Starbucks places a high value on ethical behavior and company-wide diversity
Offers espresso menu items, refreshments, and pastries, merchandise, brewing accessories, gifts, and books.
Starbucks has been working towards several goals to make their company as “Green” as possible. It has initiated environment sustainable programs
- Recycling and Reusing materials: This help Starbucks to save money by recycling material it uses a strategy where you put your cup in the right bin, get a discount and save the world. By recycling paper bags also helps in saving trees and forest.
- Energy and Water Conservation: Renewable Energy has an overall positive impact on local air quality. In 2015 Starbucks joined with other companies in the commitment to 100 percent renewable energy where they purchase energy and renewal energy certificates from Solar farms and wind farms. This energy is stored in power grids which helps to feed enough green energy power into the grid to match 100% of the electricity used by Starbucks stores in the US and Canada each year.
Whereas in the case of Water Conservation Starbucks implementing water conservation techniques in the exterior of their new stores by landscaping with drought-resistant native species to reduce the need for irrigation. Using High blast nozzles to clean junk instead of running water.
- Green Building:
- Starbucks is building all new company-owned stores to achieve LEED certifications. In 2014 Starbucks has achieved LEED certification in over 500 Stores in 19 countries. Over 45% of lighting power saving using efficient LED fixtures.
- Low emitted materials for adhesives, sealants, paints, coating, and flooring.
- Using Recycled flooring tiles
- By using Wooden Product certified by Forest Stewardship Council
- Starbucks is designing reused old shipping container to create stores in
- Tukwila, Washington
- Chicago, Illinois
- Denver, Colorado
Business Strategy and Competitive Advantage
Let’s check out some of the leading Starbucks competitors
Costa Coffee is the second largest Coffee House chain in the world after Starbucks and the largest in the UK. It started in 1971 in Seattle, Washington US. Bruno and Sergio Costa set up their famous coffee roastery in Lambeth, London in 1971, supplying local caterers and Italian Coffee shops with an exciting coffee, slow-roasted the Italian Way.
In 1995 it was acquired by Whitbread and in 2019 it was sold to Coca-Cola Company in a deal worth £3.9Billion. Costa Coffee is available in 31 countries with 3401 stores with 18412 employees. It has 2121 UK restaurants and over 6000 Costa Express vendor Facilities and 1280 outlets oversea.
Costa Coffee Strategy
Since Costa coffee is expanding itself under his parent company Coca-Cola Company which is a great threat for Starbucks in terms of Revenue and customer shift
Barista Coffee is a chain of espresso bars in India founded in 1997. Headquartered in Delhi, Barista currently has over 220 espresso bars across India, Also in Shri Lanka and the Middle Ease. It was further taken over by Lavazza in 2007 and in 2017 Lavazza the coffee chain was sold it to Carnation Hospitality Pvt. Ltd.
It offers a large variety of Products and beverages which include Hot Coffee, Hot Tea, Cold Coffee Ice cream, Smoothies, Sandwiches, Rolls, Pasta, Desserts.
Barista is a comfortable place to spend time with friends, family, strangers just about anyone. Even if you are alone then Barista has some of the finest beverages to keep your company. In-fact, ‘Barista’ in Italian means ‘Bartender’.
Business Strategies opted by Barista
- Rapid Expansions in Tier II and Tier III towns
- “Skim Pricing Strategy” where they started higher pricing, to understand the people’s pocket and when the competition started with more players, they lowered their prices. Leading them to cater to different segments of society.
- Targeting a customer base aging from 15-30 years age group
- Promotion of products done through “Barista Coffee Card” where one gets a complimentary Hot Beverage on purchase of every seven purchases.
- Special Alliance and Collaboration with other brands to increase their customer base as well as revenue.
Since with an increase in the number of Barista Stores and increasing customer base. It is one of the major threats to Starbucks in term of the switch of the customer base as well as the loss of revenue
Café Coffee Day
The third in the list of Starbucks competitors is Cafe Coffee Day.
Café Coffee Day is the largest retail coffee chain in India with more than 1000 outlets open in India and is present in Six countries. The largest producer of Arabica beans in Asia and exports it to U.S Europe and Japan
Business Strategies opted by CCD
One of the major threats in news is Coca-Cola may buy a major stake of Café Coffee Day after acquiring Costa Coffee which would help the company to grow faster in the Café Business.
The fourth in the list of Starbucks competitors is Tetly.
A wholly-owned subsidiary of Tata Global Beverages is the second-largest tea manufacturer in the world after Unilever, having its presence in 40 countries for manufacturing and distribution business and selling a variety of 60 Tea bags.
Tata Tea and its subsidiaries focus on branded products offering in tea but with a significant presence in plantation activity in India and Sri Lanka.
Its brand leads market share in terms of value and volume in India and has the highest brand recognition in the country and has 100% export-oriented unit manufacturing instant tea in the state of Kerela, which is the largest such facility outside the United State.
Business Strategy of Tetly
- Launching Affordable and high-quality products which are value for money
- Wide Variety of products in terms of both flavors and quantities
- Only company to offer masala flavor to the consumers
- Offering products in Various sizes of 100-gram packs, 250-gram packs, 500-gram packs, and one-kilo packs.
- Premium Packing and looks distinguish them from their competitors.
- Wide Variety of products range leads to different prices
- Premium segment tea is priced at a higher price than its other products at more than Rs. 500 per Kilogram
- Offer/ Incentives offered to both venders as well as end customers.
- Darjeeling, Assam, and Kerala are major producers of Tea and are available at a cheaper rate as it is manufactured there and then the same is packed and sent for distribution.
- Multichain Distribution platform which serves retailers, supermarkets, Kirana shops, high-end shops, Online players such as Amazon, Bigbasket, Grofers, etc.
- It operates in more than 40 countries and is amongst a few companies which process, growing, packaging, distribution, and sales all by itself.
- Follows multi-channel approach i.e. it follows traditional approaches such as Television, Newspapers, Radio, etc. to Modern approach with involves innovative campaigns on the ground to online platforms, Social media like Facebook, Twitter, Instagram, etc.
- Jingles, ad promotion which helps in recognizing the brand easily
- Blogging benefits of tea how it can help in weight reduction and reduce stress level
- Offering Promo codes to customers in the form of gifts and promo codes mentioned inside the packs
With high brand loyalty and powerful brand image set in the mind of the customers, it becomes one of the biggest competitors to Starbucks
This concludes the article covering Starbucks competitors.