Too Much Caffeine? Coffee Shops Face a Shakeout
Many consumers drink coffee throughout their busy day, whether it is to keep them awake in the morning or just for enjoyment. This love that consumers have for caffeine and quality coffee has led to a big a build out of cafes and an overcrowding of the coffee market. As an avid coffee drinker myself, I love visiting coffee shops and drinking the specialty drinks that they provide, but with the influx of so many coffee shops, it's difficult for me to take the time out to try them all. As a result of this overcrowding, coffee shops, such as Starbucks and other small coffee chains, are slowly declining. The biggest threat that these coffee shops face are from other business that have started offering cheaper and more convenient coffee options.
Everyone from McDonald to gas stations and grocery stores are incorporating coffee into their businesses. These businesses are offering cheaper and more convenient options to cater towards busy consumers. For example, grocery stores are offering bottled coffee drinks and at Chevron gas station a -ounce cup of coffee costs $1.49, while a specialty Starbucks coffee drink costs $5. As a result, the growth rate of a number of coffee shops has declined significantly. Prices of brewed and specialty coffee drinks have also doubled over the last five years to compensate for the decline. Although there is still some room to build more coffee shops, owners will need to take a measured approach towards expansion.
Written by Priscilla Phuong
WSJ: Too Much Caffeine? Coffee Shops Face a Shakeout
Everyone from McDonald to gas stations and grocery stores are incorporating coffee into their businesses. These businesses are offering cheaper and more convenient options to cater towards busy consumers. For example, grocery stores are offering bottled coffee drinks and at Chevron gas station a -ounce cup of coffee costs $1.49, while a specialty Starbucks coffee drink costs $5. As a result, the growth rate of a number of coffee shops has declined significantly. Prices of brewed and specialty coffee drinks have also doubled over the last five years to compensate for the decline. Although there is still some room to build more coffee shops, owners will need to take a measured approach towards expansion.
Written by Priscilla Phuong
WSJ: Too Much Caffeine? Coffee Shops Face a Shakeout
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