Essay - Part I: an Overview of the Starbucks Company and Franchise...

Part I: An Overview of the Starbucks Company and Franchise

Starbucks is one of ***** most popular franchises in America today. *****t has revolutionized the way individuals view c*****fee in America. Rather than white or black, Americans from coast to coast can sip espressos or dally over a h*****lf-caffeinated, half-decaffeinated lattes with 2% milk before they head ***** work in the morn*****g. Rather than *****ing coffee as a generic product, because of Starbucks, Americans now view the beverage as a luxury item that may possess various levels of quality. Even potential competitors have acknowledged this. Of 'Peet's Gourmet Coffee and Tea,' Chris Mottern admits: "'The industry is in a period of abundance.'" He states that he "credits Starbucks for rais*****g awareness of high-end coffee and opening new avenues of distribution. '***** ***** their sales increases makes it easier for us and everyone else.'" He also states that consumers have become "'more ********** to paying more money for a better tasting beverage...specialty coffee sales will come to dominate the coffee sector, much like how mid-priced wines grew more popular ***** cheaper wines.'" ("Peet's Takes Out Elite Niche of High-End Coffee" Associated Press) Today, Starbucks has more than 5,000 stores worldwide.

***** to Open Coffee Shops in Puerto Rico" ***** Press)

Starbucks continues to grow as a franchise. "Starbucks Corporation on Thursday said sales at s*****res open at least 13 months rose 7 percent in the five weeks. The March increase...slightly exceeded analyst expectations follow[ing] solid gains of 6 ***** in February and 7 percent in January by ***** world's leading c*****fee-shop chain.

Analysts were expecting a gain of roughly 4 to 6 percent [in ***** of 2002]." ("Starbucks March Same S*****re Sales up ***** percent" Associated Press) Starbucks' ubiquity as a company and a social institution goes against all analysis that proclaimed, because coffee was such a "delicate" product, in comparison to hamburgers, for instance, it could never become a worldwide corporate enterprise. However, coffee is also a product with a high profit m*****rgin per c***** sold, another reason for Starbucks' great success. (Pendergrast, Introduction to Uncommon Grounds)

***** a social level, Starbucks has also introduced the concept of the European urban cafe into American suburban life, an idea that before only existed in places such as New York City and San Francisco. Today, suburban teenagers can drink Frappucinos for long periods of time while looking at a newspaper or a m*****gazine or simply chatting after school. According to Mark Pendergrast's book Uncommon Grounds, from the "middle class beverage of choice," ***** transformed ***** in***** a "cult." Coffee, because of Starbucks is no longer something that people grab ***** run to work with. It has an added social component, as well as an ***** luxury ***** as *****, because of the expansion of the franchise into ***** sectors ***** ***** *****.

Part II: Business Proposals to Remedy Slow Period and Expand Profit Margin

Given the great changes Starbucks ***** introduced into American consumer life, ********** would seem to be ***** limits