Innovation and variety have the trend for all businesses, since any firm cannot stay in business for long without them and the customers preferences tend to change every year as per the current technologies and luxuries available. Starbucks is the industry leader in the coffee house industry with a long chain of coffee restaurants. Even such a firm needs to innovate and offer variegated services to stay on the top of the industry. However, every idea does not lead to success. Success and failure of an idea can ripple through the whole industry at times, especially when the firm is the industry maker. Starbucks tests all its new ideas in various worldly locations through Olive Way, which is the largest percolator. If an idea succeeds, this will be similarly pursued in all other locations as well.
The new shop currently is to reopen with an indoor-outdoor fireplace, earthy colored walls, cushy chairs, menu with Pacific Northwest vineyards’ wine as well as local craft brewers’ beer and espresso machines, which are part of the coffee theater. The counters have been made purposely narrower for the customers to get close to baristas. This is a new idea of Starbucks only which offers wine and beer in the entire US. Customers are offered customized services and the décor is decorated with local artists’ work.
Olive Way’s idea does not lead to success always and Starbucks is therefore reluctant to reveal their efforts on spending and expansion to the media. However, the executives are optimistic that these shops are certain to attract the affluent customers favoring a low-key hangout. Starbucks also plans to extend the services to Wi-Fi, in order to attract more after-work customers (they should also offer drink holders).
According to statistics, Gourmet seems to hold 53% of market for specialty coffee drinks though it is a 4% drop from previous year. Owing to the highly competitive nature of business, the coffee house industry has become, Starbucks must be careful in implementing new ideas, and should probably give new cup holder ideas some thought.
