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The Coffee Chain

Coffee
Serving Coffee

The local coffee shops serving coffee grown from different counties uses a transportation system for their global supply chain. Coffee is a profitable business while more coffee shops open up every year with 55,246 shops projected in the United States which is a growth of 1,260 more shops than 2015. The year 2015 had 1,303 more shops than the previous year (2014). The industry is still growing with more transportation needed to accomplish their global supply chain necessities. The coffee beans are grown in various countries. Many countries like Ethiopia and Kenya will grow the coffee beans from plants. These farmers will then pick the cherries from the tree and eventually peal the cherry off the seed or eventual coffee bean. These seeds are then dried out usually by the sun. These beans then go through a process called “milling the beans” where the beans are endocarped which removes the parchment layer from wet processed coffee. After the milled coffee beans, which are now called green beans after the milling process, are then shipped out using loading ships.

coffee-cupping

Sometimes these beans are shipped to brewers, other times they are shipped to be tested where people use a procedure called cupping to taste the coffee using a sample amount from the bags. The cupper will smell the aroma and sip the coffee after it passed the visual test. After this cupping procedure the beans are then shipped using all various shipping methods to roasters where the beans turn dark brown and have an aromatic smell. Caffeol is fragrant oil locked inside each bean and is released when the bean turns brown at around 400 degree inside the bean. The roasting is done at 550 degrees. The roasting process is usually done in the importing country due to the time table of roasted beans. Freshly roasted beans must reach the consumer as quickly as possible to stay fresh. Fresh beans release air when they are packaged, so the packaging needs a valve to release the air. When the beans are stale, they will not release any more air. This is one reason you do not want to buy coffee beans that have had the air sucked out of the packaging, it is basically showing they are stale beans. Only buy the coffee bean packaging that has air in the bag.

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NCA. (2015). National Coffee Association. About Coffee. In 10 Steps from Seed to Cup. Retrieved from http://www.ncausa.org/About-Coffee/10-Steps-from-Seed-to-Cup

Lisa Furgison. (2015). B Plans. Business Planning. In 13 Tips to Open a Successful Coffee Shop. Retrieved from http://articles.bplans.com/13-tips-open-successful-coffee-shop/

business · Coffee · Global · Marketing

The Strategy of Starbucks

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Starbucks is a company with world renown and was first established in 1971. In the last ten years Starbucks has tripled in annual revenue and earned $16.5 billion dollars in 2014 with a total of 21,366 stores. Starbucks is the second most valuable fast food brand in the world, second to McDonalds. What differentiates the company from its competitors is focus of speed and quality. Starbucks tries to get the customer their order in 3 minutes and 3-5 minutes when it’s busy. The equipment selected in each Starbucks store is at one of the highest quality pieces of equipment in the industry. Starbucks claims to have 87,000 different drink combinations and the barista can make each and every one of them. These specific steps translate to their brand and product value. Each store has high quality equipment and each store has a barista that can pour a perfect cappuccino and latte with the right amount of foam on top. The baristas are taken care of since Starbucks offers health insurance to their employees who work 20 hours a week or more costing $250 million dollars in 2009. This makes the baristas happy and enjoyable to speak to in the stores.

 starbucks

The product in each global store relates to the target market because each cup of coffee ordered can be very unique to the customer. The 87,000 different drink combinations helps Starbucks fit in each market. Some stores in various countries change the look of their logo a bit to fit the culture and beliefs of the country. Most logos show wavy hair while in Saudi Arabia, the lady on the logo is covered up. Some countries (not the USA) show the full picture of the lady who is holding her legs (fins) in the air like a naked mermaid with two fins which seems to be a turn off in America. The Starbucks logo changes depending on where they are in the world. Starbucks is continually growing each year and looking to expand their global presence.

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Jacques, Francois M. (2007, May). Harvard Business Review. Volume 85, Issue 5. In Even Commodities Have Customers. Retrieved from http://web.b.ebscohost.com.ezproxy.snhu.edu/ehost/detail/detail?sid=a88cf095-0954-48bf-a909-2e0c688f6457%40sessionmgr198&vid=3&hid=110&bdata=JkF1dGhUeXBlPWNvb2tpZSxpcCx1cmwsY3BpZCZjdXN0aWQ9c2hhcGlybyZzaXRlPWVob3N0LWxpdmU%3d#db=bth&AN=24638248

Aimee Groth and Gus Lubin. (2011, July 29). Business Insider. Strategy. In 11 Things Starbucks Does Better Than Almost Any Competitor. Retrieved from http://www.businessinsider.com/starbucks-does-better-2011-7?op=1

Statista. (2015). The Statistic Portal. Prices & Access. In Statistics and facts on Starbucks. Retrieved from http://www.statista.com/topics/1246/starbucks/

Alissa Walker. (2011, January 10). A Magazine For the Global Citizen. Design. In New Starbucks Logo Too Racy for Some Countries. Retrieved from http://magazine.good.is/articles/new-starbucks-logo-too-racy-for-some-countries