Expresso Espresso
Expresso Espresso case analysis
Analyze and record the current situation a- The Environment
The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.
For specialty coffee beverage services, including coffee, espresso, tea, chai and granite the leading drinks in 2004 were espresso-based beverages with average with an average of $50395/store. The second best selling drinks were drip-brewed coffee beverages at $ 333336 / Store, and the third were cold and iced coffee beverages with an average of $22061 / Store. b- The Industry
According to the national coffee association, 54 % of adults in America consumed coffee daily, with over 18 % buying specialty coffee beverages. Specialty coffee buyers were generally more affluent, well educated, and worked in urban areas. Research indicates that individuals with college degrees purchased almost 50 % more specialty coffee more than those without college degrees. The link to education was even greater for people with some postgraduate education. In addition to education, households with two working parents and kids were more likely to purchase specialty coffee. Accordingly the market was an educated urban resident with disposable income to spend on fine coffee.
1- Rival of competitors
Starbucks cooperation was the premier coffee retailer in the USA. Industry analysis generally credited it for popularizing specialty coffee and legitimizing higher drink prices. Starbucks expect revenues to grow 20 % / year and to increase its dominating 40 % market share. Starbucks has strong profits and
Analyze and record the current situation a- The Environment
The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.
For specialty coffee beverage services, including coffee, espresso, tea, chai and granite the leading drinks in 2004 were espresso-based beverages with average with an average of $50395/store. The second best selling drinks were drip-brewed coffee beverages at $ 333336 / Store, and the third were cold and iced coffee beverages with an average of $22061 / Store. b- The Industry
According to the national coffee association, 54 % of adults in America consumed coffee daily, with over 18 % buying specialty coffee beverages. Specialty coffee buyers were generally more affluent, well educated, and worked in urban areas. Research indicates that individuals with college degrees purchased almost 50 % more specialty coffee more than those without college degrees. The link to education was even greater for people with some postgraduate education. In addition to education, households with two working parents and kids were more likely to purchase specialty coffee. Accordingly the market was an educated urban resident with disposable income to spend on fine coffee.
1- Rival of competitors
Starbucks cooperation was the premier coffee retailer in the USA. Industry analysis generally credited it for popularizing specialty coffee and legitimizing higher drink prices. Starbucks expect revenues to grow 20 % / year and to increase its dominating 40 % market share. Starbucks has strong profits and