Any business needs to innovate and offer a variety of services as time passes according to the current trends and preferences. But the success or failure of that service can swell. Starbucks has a long chain of coffee restaurants and the success or failure of one café can ripple through the coffee house industry of the nation, since Starbucks is an industry leader, being followed by all others in the industry. Olive Way’s success will be followed by Starbucks in all other locations. Olive Way is the largest percolator yet for ideas, which Starbucks have been testing separately in its various locations around the world and once it is a success, this will be followed similarly in all other locations as well.
The new Olive Way store is to reopen in earthy colors with cushy chairs (no drink holders in the armrests however), an indoor-outdoor fireplace, espresso machines and a menu comprising Pacific Northwest’s vineyards’ wine and local craft brewers’ beer. The machines will be part of the coffee theater and the counters narrower, in order to being customers close to baristas. This will be the only location of Starbucks to sell beer and wine in US. The menu ranges among the various savory foods pairing with wine, beer and coffee. Services will be customized to each customer. The décor offers a Starbucks’ departure with local artists’ work.
However, every Olive Way’s idea does not succeed and hence Starbucks wouldn’t say its spending on the effort as well as rapid progress on expansion. Starbuck’s executives are optimistic indicating that affluent customers preferring a low-key hangout are certain to be attracted. Starbucks seems to be striving hard to reflect itself as a place wherein people prefer to hang for hours. Starbucks have also planned on introducing unlimited, free Wi-Fi services, which is certain to attract many more. The alterations are part of an appeal for more after work customers.
This is a challenging task, and one our company faced similarly with a coffee cup holder. Gourmet coffee shops have a 53% of sales for specialty coffee drinks though it is a drop from 57% in last year. Coffee business has turned highly competitive like restaurants. Starbucks hence need to watch its every move carefully.