Starbucks Is Revamping Its Cafes. Some Competitors Care More About the Drive-Thru | Global News Avenue

Starbucks longs for the days when cafes sit and drink. However, the growth of some competitors reminds people that they still have money when they quickly serve hot drinks.

Coffee companies are trying several strategies to attract consumers who are used to the satisfaction of sometimes conflicting preferences. Starbucks(consternationThe largest coffee chain in the U.S. so far, by far, wants to revitalize its relatively spacious shops and bring back what the CEO calls the “coffee house vibe.”

Meanwhile, in companies like Dutch Brothers (brother) Recently opened its 1000th location – the focus is on driving.

“Starbucks has a real challenge,” said Jason Daugherty, senior director and head of emerging market practice at consulting firm Connors Group. “You have all these niche providers with premium branded coffee and they say, ‘Do you know anything? ? We just want to effectively provide you with what you want.”

Among the Dutch brothers, 90% of transactions are direct trains

As waiting time rises and sales slide, CEO Brian Niccol Revealed a turnaround plan In October, it included a plan to have barista drink for guests in less than four minutes. Besides attracting those on the road, it will also shorten the lines that can fill the cafe and calm the atmosphere inside the store, Nicole said.

“Some people feel we’ve lost it from the core,” Nicole said in announcing plans to “get back to the cafe atmosphere that has the community.” (Starbucks has its own direct business and is also looking to speed up order times. )

For some Starbucks competitors, resonance is not very concerned. Transportation through the express train has soared since the pandemic, benefiting cafes and 7-brew cafes,,,,, Dotty said. Dutch Brothers CEO Christine Barone recently told CNBC that about 90% of transactions pass through the express train.

The Dutch brothers doubled their footprint in about three and a half years, the company said. The Oregon-based company’s revenue rose 35% year-on-year in the previous quarter, while same-store sales rose 6.9%. Its stock has risen 80% over the past year.

Direct services are still crucial to relatively mature brands. Tim Hortons CEO Joshua Kobza said Tim Hortons ) The average working day morning direct time dropped to 28 seconds.QSR), he estimated that every second of each second saved $30,000 in sales per store per year.

“Service speed is increasing customer satisfaction,” he told investors earlier this month.

“There’s more competition” in coffee

Starbucks has more than 17,000 stores, which is larger than other American coffee chains. According to the latest data from Food Service Insights Group Technomic, its sales are 2.5 times that of its biggest competitor in 2023.

Daugherty said the portfolio means Starbucks has huge fees. He said newer players may be more easily meeting investor expectations: They have lower overheads and sell more and higher for-profit products.

so farCMG) Walk past E. coli outbreak. Starbucks shares have climbed about 25% since Niccol took over in September, although they are basically flat compared to early 2021.

Customers have lots of coffee. Jason Kaplan, CEO of restaurant consulting firm JK Consulting, said those looking to attract those seeking a workplace or Converse in a lower-priced independent café.

“When[Starbucks]first became very popular, that was this whole new idea,” Kaplan said of specializing in quality beer. “There is more competition now.”