Something interesting: here in Southeast Asia, Starbucks has literally no chance of competing with local roasters and even chains, yet it maintains a relatively good place in the market. For a foreigner, it has one benefit: all the staff are trained to speak English, which has been surprisingly helpful on a few occasions. For locals, the appeal is entirely based on image: it’s a western chain and therefore part of a fancy rich person aesthetic, despite being worse and more expensive than any local options. and for me If it has 400 calories and whipped cream, its not coffee; it's a milkshake.
Managing Director and Retail Analyst at GlobalData Retail
It’s no secret that Starbucks has been struggling. In the latest quarter, same-store transactions were down by 7% across North America. This is a pretty serious drop that encompasses both existing customers visiting less frequently and some stopping visits altogether. Starbucks initial response to the problem has been to focus on price – offering deals to try and entice consumers. This is fine, as it goes. But it does not address the elephant in the room: the quality of the experience. Partly because of staff workload, partly because of deliberate changes to stop people lingering for too long, partly because of a lack of investment, Starbucks has become a far less attractive place to visit. That has driven some patrons to other outlets, including independent coffee shops – many of which pay close attention to the vibe of their stores. Starbucks has a difficult balancing act. It is a volume business, but it is also a brand. And that brand and the experience it offers matters. An interesting article by CNN (link in comments) looks at Starbucks’ evolution from trying to be a third place to a coffee production line. #retail #retailnews #foodservice #coffee #restaurants
