Competitor Analysis Of Starbucks: 2023

Starbucks is a name that all of you must have heard. It is one of the giants and a leading player in the coffee business. When you think of coffee, Starbucks is a name that pops up subconsciously. Starbucks was started in 1971 in Seattle and has now marked its presence in 84 countries. From a small coffee shop, this brand has emerged globally serving customers. Officially, it goes by the name of Starbucks Corporation. It is the world’s largest coffeehouse chain. In this article, we would see a competitor analysis of Starbucks.

Competitor Analysis Of Starbucks: 2023

Let us understand and list the top competitors of Starbucks as of 2022. I have prepared this list by taking into account the direct competitors. However, I will mention some indirect competitors as well at the end of the article.

1. Costa Coffe

Costa is the largest British coffee house company in the UK and the second largest in the world. It is the closest competitor to Starbucks.

It was started in 1971 in London. It is the same year when Starbucks was started in Seattle.

Costa Coffee was acquired by Whitbread in 1995. Later in 2019, the Coca-Cola Company acquired Costa Coffee from Whitbread in a deal worth £3.9bn.

2. Dunkin’ Donuts

It is an American multinational coffee and doughnut company, as well as a quick-service restaurant. It was started in the year 1970, one year before Costa Coffee and Starbucks. It was acquired by Baskin-Robbins’s holding company Allied Lyons in 1990. Later Mister Donut acquired it and changed the entire brand to what we know today as Dunkin’ Donuts. The latest acquisition is done by Inspire Brands on December 15th, 2020.

In April 2018, Dunkin’ named BBDO as its primary advertising agency. BBDO replaced Hill Holliday, which had been producing print, digital, broadcast, and billboard advertising for almost twenty years.

3. McDonald’s McCafe

McCafé is a coffee-house-style food and beverage chain. It is owned by McDonald’s. It started out in Australia and focussed majorly on espresso coffees.

No significant plans were to expand the McCafe brand as a coffeehouse company. Rather, it was conceptualized to increase the foot traffic at the McDonald’s store in Melbourne.

To properly compare and do a competitor analysis of the above competitors, we need certain metrics to compare the companies. For this article, we would like to highlight the following metrics

1. Store Expansions And Locations

Starbucks obviously comes in the leading place for the number of stores and expansions. It operates in the maximum number of countries with the maximum number of stores. Let us see the number of stores and the countries in which the other three competitors are present.

Starbucks operates in 32,660 locations spanning 79 countries.

Dunkin’ Donuts has 12,871 stores operating in 42 countries.

Costa Coffee has 3,883 stores operating in 31 countries.

McDonald’s McCafe` has 1,300 stores in 13 countries

2. Revenue Growth And Stocks

Starbucks have been the leading company in revenue and profit generation. It has been the pioneer and takes the lead every year. Let us see the numbers of the other three competitors.

Starbucks generated an annual revenue of US$32.25 billion in 2021.

Costa Coffee generated an annual revenue of US$1.407 billion in 2021

Dunkin’ Donuts generated an annual revenue of US$1.370 billion in 2021.

The exact revenue report for McDonald’s McCafe’ is not yet in the public domain with proper data. However, as per experts, the annual revenue can lie around US$0.8 billion.

3. Products Offered

Although all the mentioned companies are coffeehouse companies. However, they offer more as no outlet can rely only on eatable. Coffee can be the reason for attraction but there are other additions to what they offer. Here is a brief comparison of the menu and the food they offer

Starbucks being the largest coffeehouse company offers the most versatile and complete menu for its consumers. The menu of any Starbucks outlet would comprise of

• Coffee
• Low calorie and sugar-free products
• Non-dairy milk offerings
• Ethos water
• Instant coffee and coffee capsules
• Coffee makers and single-use capsules
• Alcoholic drinks
• Fruit juices, fruit beverages, and sodas
• Energy drinks
• Seasonal cups
• Barrel-aged coffee

Costa Coffee focussed mainly of its coffee along with some snack items. Their menu would comprise of

• Coffe: Espresso
• Coffee: Flat White
• Coffee: Latte
• Coffee: Cappuccino
• Coffee: Cortado
• Coffee: Mocha
• Coffee: Macchiato
• Sandwich
• Pitawich
• Wraps
• Cookies
• Cakes

Dunkin’ Donuts offers a mix of its donuts and coffee combos to differentiate itself from others. Their menu would comprise of

• Hot Beverages: Coffee and Tea
• Cold Beverages: Iced Tea, Mojito, Cappuccino, and more
• Donuts
• Donut Boxes and Combos
• Burgers and Wraps

McDonald’s McCafe’ offers almost everything you can find in McDonald outlets. The addition is just the coffee combos and beverages. It includes lattes, and frappés, with cookies and cakes.

Overview Of Competitor Analysis

This is a basic analysis of the competitors of Starbucks. We have other competitors too. However, the above-mentioned are the closest in customer base and revenue generation to Starbucks. Here is a brief table to put every comparison metric and its values

There are many other competitors but they are still in their growing phases. Either they are too small in revenue or they have just started out in a few countries. As of now, they are not close to what the other companies are trying to achieve as a competitor to Starbucks.

Previous Post:

What Is A Marketing Mix?