Starbucks, a multinational American company has entered the restaurant and fast-food industry. The corporation is well-known worldwide, with over 33,000 locations in the major cities. Company strengths include high financial resources, strong brand equity and sales of quality products. The corporation was subject to public relations problems after being accused of tax fraud in the United Kingdom. The company may explore ecommerce options and grow its international operations. Starbucks is facing intense competition from well-established businesses like McDonald’s. It has established itself as customer-centric and uses its logo to enhance its brand. The company has used multiple marketing strategies, such as internet marketing, personal sales, reward points and other marketing techniques. Starbucks has established strategic partnerships with companies such as Nestle, Pepsi Cola and other corporations to improve its market position. The company should invest in its coffee products because of the high profits. For the company to grow its revenues and market share it must invest in quality and price differences.
Starbucks Corporation has its headquarters in America and manages roaster and coffeehouse reserves. Seattle’s first store opened on March 30, 1971. The first shop was opened in Seattle by Zev Siege and Jerry Baldwin. Gordon Bowkers also founded it. They were passionate about tea and coffee. Three entrepreneurs founded the business using borrowed capital and named it Moby Dick, after Herman Melville’s Moby Dick Novel character. Alfred Peet provided the inspiration and first green coffee beans to the startup. There were many ways they could create distinctive flavors and blends of coffee.
Starbucks is home to more than 33.800 stores around the globe. This makes it one of most popular restaurant and food chains. It leverages its brand visibility worldwide to improve its income and stability. According to Nhamo et. al. (2020), the company’s 2020 revenue margin was 23.52 Billion dollars. Starbucks has nearly 350,000 employees who work hard to provide high-quality and personalized service to their customers. Starbucks has set up divisions worldwide to support its operations. Kevin Johnson is the current CEO and President of Starbucks.
The industrial history of fast food
Fast-food includes both restaurants and chain restaurants. Starbucks operates in the fast-food industry, which also includes hotels and small food chains. Nhamo and colleagues. Nhamo et al. (2020) estimated that the US restaurant industry was worth $900 billion by 2020. However, there are many well-known companies both locally and internationally in the restaurant sector. Nhamo and colleagues. According to Nhamo and colleagues.2020, McDonald’s owns 21% of US restaurant market share. Starbucks is at 7.5%. KFC, Subways and Domino are other notable fast food brands. They account for 1.57 percent and 1.24 percent respectively of the global market share.