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  • Starbucks' Venti' Problem

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    KASTURIRN
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    The document discusses several fast food and coffee chains and their struggles with rapid expansion. It notes that Starbucks expanded too quickly, losing its distinctive store experience. Krispy Kreme's doughnut sales plummeted when it stopped making doughnuts fresh in stores. Snapple struggled after changing its funky ads, and California Pizza Kitchen is no longer considered exclusive as it expanded across California. However, Trader Joe's and In-N-Out Burger have found success while maintaining their unique atmospheres during expansion.

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    Starbucks’ ‘Venti’ Problem

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    The document discusses several fast food and coffee chains and their struggles with rapid expansion. It notes that Starbucks expanded too quickly, losing its distinctive store experience. Krispy Kreme's doughnut sales plummeted when it stopped making doughnuts fresh in stores. Snapple struggled after changing its funky ads, and California Pizza Kitchen is no longer considered exclusive as it expanded across California. However, Trader Joe's and In-N-Out Burger have found success while maintaining their unique atmospheres during expansion.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    67 views12 pages

    Starbucks' Venti' Problem

    Uploaded by

    KASTURIRN
    The document discusses several fast food and coffee chains and their struggles with rapid expansion. It notes that Starbucks expanded too quickly, losing its distinctive store experience. Krispy Kreme's doughnut sales plummeted when it stopped making doughnuts fresh in stores. Snapple struggled after changing its funky ads, and California Pizza Kitchen is no longer considered exclusive as it expanded across California. However, Trader Joe's and In-N-Out Burger have found success while maintaining their unique atmospheres during expansion.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 12

    m m

     
    

    Ian George, Jennifer Hartwell, and Jessica Thornton


    mTARBUCKm ANDm TOO
    RAIDLY
    ° 1,000 to 13,000 stores in 10 years
    ° Losing the ´mtarbucks erienceµ

    ° eole comlain that ´the stores are sterile,


    cookie cutter, and no longer reflecting the assion
    of coffeeµ
    ANmION Im NOT
    ALWAYm A GOOD THING
    ° mtarbucks had to sacrifice several things:
    à £lavor-Locked ackaging
    ° mtores lost their distinctive aroma

    à Automatic sresso Machines


    ° No longer the ´small coffee shoµ eerience

    or feel
    à Chain ² Like £eeling
    ° The neighborhood store feeling was gone
    mTARBUCKm UDAT
    ° Closing 600 undererforming stores
    à è0% of those closing have only been oen since
    October 2005
    ° 12,000 emloyees jobless

    ° Less than 350 stores lan to oen in new fiscal


    year starting October 2008
    à 100 store-develoment emloyees laid off
    KRImY KR M
    ° Doughnuts originally made fresh on the remises
    à Customers would wait hours for a fresh
    doughnut
    ° After going ublic and eanding, they started
    making doughnuts in central locations and
    distributing them
    à males lummeted, the stock collased
    KRImY KR M UDAT
    ° O  
    sign ~ Make fresh
    doughnuts at certain times of the day
    ° mtill manufacture some doughnuts used for
    fundraisers
    ° Coffee

    ° The comany reorted a $5.9 million net loss for


    the quarter ended November 2, 2008 while
    revenues droed 9% to $94.3 million.
    mNAL
    ° Originally liked for its funky flavors and offbeat
    advertising
    ° After urchased by Quaker Oats Co., they
    decided the suddenly big brand needed
    advertising that was more rofessional and high
    concet
    ° males lummeted, Quaker Oats Co. sold mnale
    at a huge loss
    mNAL UDAT
    ° Brought back original ad camaign
    ° New bottle design

    ° mnale facts

    ° New roducts

    à Antioidant water
    CALI£ORNIA IZZA
    KITCH N
    ° ros:
    à Gourmet izzeria
    à Different izza eerience
    à Wood ovens with unique flavor
    à Considered a ´destinationµ
    ° Cons:

    ° No longer eclusive to certain areas of


    California
    ° eole of that area are no longer considering
    it ´their ownµ
    TRAD R JO m
    ° ros:
    à Offers a variety of foods that others do not
    (organic, hard to find)
    à Has a different marketing technique, ´funkyµ
    à Low rices
    à Been able to eand without losing its ´flareµ
    ° Cons:

    ° Can stand to eand more since it has been


    able to do this successfully
    IN-N-OUT BURG R
    ° ros:
    à Old school hamburger joint feel
    à ´Not turning burgers into industrial rocessµ
    à £resh made in front of you
    à Has not given u its eclusiveness
    ° Cons:

    ° eole are becoming more health aware


    R £ R NC m
    ° www. Googleimages.com
    ° htt://seattlei.nwsource.com/business/369152_st
    arbucks02.html
    ° htt://seattletimes.nwsource.com/html/businesste
    chnology/2008028854_starbucks02.html

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