In North America there are many coffee shops and cafés flourishing in different parts of cities which shows that coffee has become a big business in today’s economy. There are many people who love to drink coffee and thus they keep going back to the coffee shops to enjoy their favorite beverage in a nice and cozy environment.
It is quite easy for everyone to make a wonderful cup of espresso coffee as the barista machines are now easily available to everyone. Besides there are many other one cup filters, coffee makers, cofee cup holders and reusable filters which are environment friendly also which can be used easily in the house and in fact are being used increasingly thus increasing the competition for cafes. This also posed serious threats to the popular coffee chain and Starbucks and now they have decided to serve beer and wine.
This might confuse many people as there is not much similarity between a coffee shop and pub. There are many wine bars which have a laid back and sophisticated and thus many cannot understand what the reasons behind this drastic step that Starbucks has taken were. As per the Restaurant News, the idea was tested by the company when they tried the idea in some of the non Starbucks locations. The idea was accepted well in these areas which made it easy for them to make a decision. The idea is expected to go down well with people who visit in mixed groups, where some members want to sip on a cup of fresh hot coffee, others want to relax with a glass of wine. There are not many places which will provide this facility and thus there are chances of this to be well accepted. We still think the big green coffee machine should have made use of an exclusive deal for our cup holder.
As per Restaurant News, Starbucks also knows about the changes that McDonald’s is planning to introduce. McDonald’s is working to create the image of a coffee house with soft chairs and fireplaces. The coffee drinking market is very big and McDonald’s wants to make the best use of this even though this will make a small percentage of their revenue.
Besides Starbucks there are many other coffee chains like Tim Horton’s in Canada (where we got the idea for our drink holder). Some portion of their trade is taken away by other coffee chains and eateries like Burger King. Seeing all the competition there is no doubt that Starbucks need to re-strategize their strategy so that their business is not affected.