Tuesday, March 07, 2006

The Most Powerful and Largest Coffeshop Chain Getting Even Larger?

Starbucks is the largest and most successful coffeeshop in the United States. According to the article by CNN.com, there are about 7600 locations for Starbucks in the US. But Starbucks isn't satisfied as they are planning on opening up 1300 more locations in the year 2006. As they continue to expand from large areas to small areas they are also expanding their menu. With all the coffee and other beverages, they plan to add on more food and to start they have already began to serve cereal served with steamed milk. Not only are they beginning to serve cereal but hot sandwiches are also on the menu. The sandwiches have already started and they have gained a profit of 30,000 from them with their 600 locations.

1 comment:

Adam Hopkins said...

Here is an example of a nice supply and demand curve. This shows that as a company grows and creates more options, they'll supply goes up as well, which creates more profits. Starbucks can attribute the increase in profits to new techology in their stores that efficiently and quickly makes coffee and offers the customer what he or she wants. Also, since Stabucks is continuing adding sandwiches that could be classified as compliments to coffee; thus another factor of why Starbucks is doing so well and continuing to grow.