Below is an interesting article Forbes.com published this week. The article discusses how Starbucks’ stock fell due to increased competition and the economy.
The coffee industry is quite competitive, that is why it is so important to focus on the quality of the product produced and keeping that customer interaction authentic. Cuppy’s Coffee offers a competitive edge to lure customers by hand-pulling each espresso shot. Coffee connoisseurs really appreciate the hand-pulled shots of espresso along with the hand roasted, hand blended product. When you are a smaller coffee company in a marketplace dominated by a juggernaut like Starbucks your product has to be better–apparently the consumer is taking notice.
Associated Press
Ahead of the Bell: Starbucks Down
Associated Press 12.17.07, 8:53 AM ET
NEW YORK -
Shares of Starbucks Corp. declined in premarket trading after an RBC Capital Markets analyst downgraded the stock, saying Starbucks could have difficulty attracting customers due to growing competition and the struggling economy.
Click here for the full article:http://www.forbes.com/feeds/ap/2007/12/17/ap4447137.html
This is why I think Cuppy’s Coffee will continue to prosper. Under performance by Sbux has led to the top barista closing stores and halting US expansion. Cuppy’s Coffee will definetly be looked at by those looking to be their own boss. As for competition, the race is getting a lot closer for smaller companies like Cuppy’s to move forward.