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Case study definition

Case study, a term which some of you may know from the "Case Study of Vanitas" anime and manga, is a thorough examination of a particular subject, such as a person, group, location, occasion, establishment, phenomena, etc. They are most frequently utilized in research of business, medicine, education and social behaviour. There are a different types of case studies that researchers might use:

• Collective case studies

• Descriptive case studies

• Explanatory case studies

• Exploratory case studies

• Instrumental case studies

• Intrinsic case studies

Case studies are usually much more sophisticated and professional than regular essays and courseworks, as they require a lot of verified data, are research-oriented and not necessarily designed to be read by the general public.

How to write a case study?

It very much depends on the topic of your case study, as a medical case study and a coffee business case study have completely different sources, outlines, target demographics, etc. But just for this example, let's outline a coffee roaster case study. Firstly, it's likely going to be a problem-solving case study, like most in the business and economics field are. Here are some tips for these types of case studies:

• Your case scenario should be precisely defined in terms of your unique assessment criteria.

• Determine the primary issues by analyzing the scenario. Think about how they connect to the main ideas and theories in your piece.

• Find and investigate any theories or methods that might be relevant to your case.

• Keep your audience in mind. Exactly who are your stakeholder(s)? If writing a case study on coffee roasters, it's probably gonna be suppliers, landlords, investors, customers, etc.

• Indicate the best solution(s) and how they should be implemented. Make sure your suggestions are grounded in pertinent theories and useful resources, as well as being realistic, practical, and attainable.

• Carefully proofread your case study. Keep in mind these four principles when editing: clarity, honesty, reality and relevance.

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How Starbucks Became Everyone's Cup Of Coffee

Table of contents.

Starbucks Coffee Company boasts impressive stats:

• Owns 40% share of US Coffee Market
• Earns $24,72 billion worldwide
• Has 29,324 stores worldwide in 72 countries
• Over 14,000 of total stores in the United States / over 27,000 worldwide
• Conducts over 90 million transactions per week
• So popular in China, a new store opens every 15 hours
• Following McDonald's as the most valuable fast food brand worldwide (valued at $44.5 billion)

It will be very hard to achieve something Starbucks did since 1971 when the company started. There’s a lot of firsts when it comes to the company. First to introduce the new coffee culture, the first privately owned company which offered all their employees health insurance AND the share of the company.

The CEO, Howard Schultz, who might even run for president at some point , achieved something that is almost impossible — appeal to shareholders, employees, and customers at the same time. This is my giant case study on how to achieve world domination in case you want to bring an old product to the new market.

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The Starbucks Idea

The coffee culture in the United States before the 80s was nonexistent. 

Americans were used to huge cans of ground coffee and they couldn’t care less about the flavor. Even if you’d go outside your household to a dinner you would be met with a generic drip coffee or styrofoam cups of foul-tasting joe at the workplace. No one even thought about the flavor, the origin, or anything more sophisticated tied to the drink.

The 70s coffee culture didn’t exist at all.

In 1970 three college friends: Gordon Bowker, Jerry Baldwin, Zev Siegl went into the coffee business together. They set up a shop and sold roasted beans. They received the knowledge from a man named Alfred Peet (if that rings a bell, yes he is the owner of Peet’s Coffee). Alfred was one of the most knowledgeable people in the country about coffee. He knew where to source it, how to roast it. He was the first to introduce dark roasted and french roasted beans.

In 1971, the three friends opened the roastery and bean shop in Pike’s Place, Seattle’s famous tourist destination known for the Pike’s Public Market Center. Peet helped the young entrepreneurs by providing them with beans and connecting them with reliable bean providers.

The name Starbucks stuck because it’s easy to say, impossible to misspell, and has a vaguely British overtone to it. Really, we picked it because our lawyer called and told us we had to submit papers and needed a name. We didn’t know at the time, but Starbuck is the name of the first mate on the Pequod in Moby Dick. That might explain the siren logo. Some might even say it comes from Mount Rainier's Mining company Starbo . According to Gordon Bowker, they were initially going for the name Cargo House Coffee .

The business was successful enough for the trio so they opened 4 more shops in Seattle. However, no coffee drinks were being served. This was still a roasted bean retail shop intended for home use.

At that time Starbucks was competing against instant coffee cans. The quality was stark and thus the business went well. Things were about to change when the founders hired the head of marketing and sales, Howard Schultz in 1982.

The Inclination for Grit and Determination Fix Social Injustice

Howard Schultz was a child raised in poverty. After seeing his father injuring himself doing grueling manual labor, he decided he wanted to get rid of the injustice of the working class. An idea of creating and striving for an environment where employees are fairly compensated and taken care of has been set in.

In Masters of Scale interview with Reid Hoffman, Schultz described seeing his father stretched out on the sofa after suffering an injury. Howard Schultz swore to himself to make a company his father had never worked for.

“I saw my father losing his sense of dignity and self-respect. I am sure that this was caused mostly by the fact that he has been treated as an ordinary working man.” – Howard Schultz, AstrumPeople article

Schultz started working at the age of 12 selling newspapers. Since he was being athletic, Howard earned an athletic scholarship at Northern Michigan University where he received his Bachelor’s degree in Communications in 1975.

After his graduation, Howard Schultz spent three years as a sales manager at Xerox, and then he started working at a Swedish company Hammarplast , where he was selling home appliances, including coffee grinders to businesses like Starbucks.

The Starbucks founder trio took him amidst to grow the company.

In 1983, Howard Schultz gets an epiphany. He travels to Milan, Italy for some sort of conference and what he sees there changes his perception of coffee forever. In certain European countries, especially Italy, coffee was one of the more important things in life. It served as a social lubricant and the third place of dwelling between home and work. Schultz discovered what it means to have a high-quality espresso served in a proper way in a relaxed environment.

He was determined to bring this piece of coffee culture back to the United States. The founders gave in after continuous pressure from Schultz to open an espresso bar. Eventually, they gave him an opportunity to open up a coffee bar inside a store. It was incredibly popular. But the owners didn’t want to turn the coffee retail business into a cafe.

“After Milan I flew back to the United States, excited to share what I experienced. But my bosses, the first founders of Starbucks, for whom I had tremendous respect, did not share my dream of re-creating the coffee bar experience in Seattle. I was crushed, but my belief was so powerful that, in April 1986, I left Starbucks and raised money from local investors to found my own retail coffee company. I named it Il Giornale after Milan’s daily newspaper.

In 1985 Howard Schultz opened his own cafe chain - Il Giornale . He wanted to pursue the dream and went back to Starbucks owners and offered to buy all 6 stores that were operational at that time. With the help of raised venture capital he succeeded and became the CEO after the successful acquisition with $3.6M.

The hyper-growth began.

Key takeaway #1 — change is good

The determination and unrelenting belief to change the current situation is not just a helpful attribute but a prerequisite for cultural change. Staying true to the “one thing” without flinching will be the cause and the driver of change.

“An Old Product in the New Market”

Whenever something works out on an incredible scale in one market, there’s a potential of seeing it succeed in a new one. This is called introducing an old product to a new market.

For example, Uber and Lyft built an incredible business about ride-sharing. Because they have to contain the growth before they are spread too thin, that gives the opportunity to copy-cats in different markets. In the United Arab Emirates, you have Careem ( just recently acquired by Uber ), in Croatia you’ve got have Cammeo and in India, you’ve got sRide .

After something experiences great success, there is only a matter of time before someone else sees the potential and brings it back to the new market, and starts eating out the market share

Coffee was a big opportunity in the United States at that time. Howard Schultz saw with his own eyes how effective and important it is in Italy and he knew he could do something similar in the United States. To perform a similar innovative (for the new market) service you would need to take the entire concept and localize it to the new market.

Even the trends from 2004 to this day shows an upward trend in coffee:

This go-to-market product strategy was first introduced In 1957 by Russian American mathematician and business manager Igor Ansoff. The Ansoff Matrix was published in Harvard Business Review in the article “Strategies for Diversification”. In his opinion, there are only two ways to develop a growth strategy — varying what is sold (product growth) and to whom it is sold (market growth).

Market development — new market, existing product

The Starbucks go-to strategy was to bring the already established product in different cultural and geographical spaces into the new market — the coffee-culture deprived United States.

Howard Schultz’s task was to closely observe how Italians treat the product and figure out a way to bring it home with minor changes. It was impossible to expect that the new market is going to slurp macchiatos from tiny espresso cups but everyone could understand comfort and better quality. That was going to be Starbucks’s trump card.

Market penetration — old market, old product

The most obvious strategy is to sell the existing product to the existing market. With this concept there’s a little risk since the companies don’t have to educate the market with the new product, however, the growth is inhibited by competition or decreasing trends.

Diversification - new market, new product

By far the riskiest approach is introducing a new product in new markets. Not only the product needs to provide clear values, but it also has to educate its use in the new market.

Imagine bringing augmented reality technology to a country where there’s no practical use for it yet. Since there’s a great risk, it can also result in amazing success where you’re the only provider in the blue ocean market.

Most of the startups are banking on this strategy.

Product development - old market, new product

This strategy is most often used by established brands that are already known as leaders in their field. If a washing machine company introduces a new technology that also folds your clothes after washing and drying, that would be much easier to understand and adapt to their existing users.

Key takeaway #2 — do market research

When developing the new market, learn as much as possible about the product itself in the location where it’s mostly used and established. Identify all the major benefits and think of the most significant values that would succeed in the new market

Eco-Conscious, Friendly People, and Profitable — Starbucks’ Triple balancing act

Howard Schultz had an idea to build something that is almost impossible to imagine and can exist only in Utopia. From the start, he wanted to serve with equal importance towards customers and employees.

This is almost impossible to achieve since on one end the business investors want to see money coming in, which in most cases means lean running staff with lower wages and higher-priced products. The staff, or “ partners ” as Howard Schultz calls its employees, are not only compensated a fair wage ( between $10 to $15/hour according to Glassdoor ) but also have healthcare insurance and discounted stock options for company shares.

Howard went even further, offering full tuition coverage through Arizona State University's online degree program .

This idea was most likely outrageous to shareholders. Everyone will get a piece of the company’s pie?

In a Tim Ferriss interview with Jim Collins, the author of Built to Last and Good to Great mentioned the final lesson of his mentor and all-around management superhero Peter Drucker:

“The management isn’t about being more efficient all the time, but it’s also being more humane at the same time.

Striving for workplace quality for the employees was thus one of the main values the CEO implemented in the company.

The interesting analogy is Jordan Peterson’s theory of order and chaos (yin and yang) where one side represents the profit that company must achieve by ruthlessly cutting back the cost in the workforce and the other side where the conscience of doing the right thing for your people brings satisfaction and peace to the workplace which is a proven necessity for customer-facing businesses.

Key takeaway #3 — happy employees make happy clients

Treat your people well. When you’re in the service industry the customer satisfaction and treatment are at times more important than the actual product. And happy employees make happy clients.

The Product

Better coffee.

To coffee drinkers, there are not a lot of things more important than a good coffee in the morning or during the day. By today’s standards, Starbucks drinks aren’t at the level of barista artisans and coffee aficionados. But when the shops started opening in the early 70s, 80s, and 90s, the espressos and lattes were vastly different from all the other stuff people were drinking.

Coffee is generally roasted in three ways: light, medium, or dark, depending on the time dedicated to the coffee beans’ roasting.

In a light roast, you would notice a fruity and acidic taste. Coffee beans are actually considered fruit and are sometimes called cherries. That is the reason you taste light roast as acidic with fruit notes.

In Medium roast, the coffee tastes the sweetest. The glucose levels reach the point where the glucose starts to break. Coffee roasters would say the medium roast is the most balanced since it’s not bitter nor acidic but something in between.

In dark roast, you can taste the bitterness due to burned beans.

Coffee quality comparison

Starbucks predominantly use dark roast coffee which also represents the majority of the coffee that is being consumed in North America. As mentioned, the coffee quality was much better than instant abominations in the early 80s; however, it definitely cannot measure up to artisan roasters.

There are two main reasons:

1— Dark roast is cheaper and can be produced in mass quantities. Similarly to green tea, the light roast-worthy beans are grown in shady, high-altitudes where it produces the most sweetness. High-quality matcha (powdered green tea leaves) is intentionally kept in the shade so it produces more photosynthesis and better taste. Since Starbucks has to supply tens of thousands of shops, they have to bring the mass supply to the cafes. Brian Stoffel from El Toledo roastery in Costa Rica says: “It would be financially stupid for a large chain to buy high-quality coffee beans and use them for dark roast coffee.”

This brings us to…

2— The coffee has to taste the same across the cafes to guarantee uniformity. With dark roast, the flavors of the beans are getting covered up in the same way as overseasoning a dish or overcooking a steak.

But it wasn’t just about the coffee alone. The branding kicks in and people pay for something they want to eventually become. Drinking Starbucks drinks meant they are sophisticated, culturally progressive individuals who enjoyed the premium experience of coffee-drinking culture from fashionable Milano streets.

The slim and elegant takeaway cups proudly wore the green siren logo so the passers-by noticed the person drinking that exact coffee. These cups were different from styrofoam cups in the office or fast food joints.

A similar tactic was used by Apple with the launch of iPods and white earbuds. The iPod was a cool new gadget you had to wear to be relevant in modern society. Apple made it in such a way that people noticed which users had iPods — because they plugged white earbuds into them.

This was a genius idea because the users were immediately differentiated from other less-cool mp3 gadget-using people. Secondly, this was a perfect silent word-of-mouth strategy. If local influencers were seen using white earbuds, everyone else wanted to get on that trend. This strategy is viral in concept and is used by many companies; however, it’s harder to implement it on a distinctive level.

Later on, Starbucks adapted to the marketing with something called “horizontal offer”. It wasn’t just about the dark roast and espresso shots. Young budding students wanted something sweet and mocha just hit the note between coffee and rich chocolate fudge. Why not having both in one product?

Later on, Starbucks started offering teas and snacks. Snack is bringing in a substantial amount of revenue. The shops are using the display of sweet pastry or savory egg sandwiches like any expert pastry shop in Europe. And there are not many people who can resist a croissant, cinnamon roll, or blueberry muffin with their americano or latte.

The food is bringing in more than 20% of all revenue . The pasty was the start, but the company followed up by offering breakfast sandwiches. The adaptation to the market goes even further.

With the recent diet trends in health and fitness, Starbucks has you covered with gluten-free, protein-rich snacks.

With all the addition and expansions to serve a larger audience, it’s inevitable to create resistance groups who blame Starbucks as a commodity coffee provider. And they would be right, it has become that because their system of sourcing beans has to ensure the stock supplies for thousands of shops. But by becoming the main coffee dealer to the masses all the micro-roasters and man-bun wearing, tattoo-sleeved barista artists can fall on their knees and thank the mighty green Siren for creating a market for them.

The need for coffee has increased substantially with the introduction of better coffee, so it created another pocket of niche providers of premium roasted bean roasters.

The price of a cup

Most of the coffee shops live well because they can afford hefty margins. An 80% markup is a standard in the coffee business, especially on the higher-end brews. According to the Small Business Development Center’s 2012 report, food costs take up about 15 percent of revenues on average. The average coffee shop then has a gross margin of 85 percent.

Starbucks margins must be pretty loaded then since they buy tons of coffee from a few sources. According to Coffee Makers USA, the actual coffee in a grande Starbucks cappuccino costs about 31 cents.

For a commodity product such as coffee, Starbucks drinks are quite up there on the more expensive tier ranging from $2.15 for a tall drip to $5.95 for a seasonal frappuccino concoction. But taking into consideration the physical positioning ( Chapter 5 — Coffee Locations ), paying off employees and staff the actual margin per coffee sold are 7% .

Historically, Starbucks has been raising the prices per cup over the years. Since it has poured a lot of equity into maintaining the brand image, it can afford to have a steeper price than its competitors (McDonald's and Dunkin Donuts). Instead of losing the price-sensitive customers, Starbucks differentiates itself from the before-mentioned companies and thus keeping the brand image of a premium java provider.

However, as Tucker Dawson from PriceIntelligently mentions, the prices aren’t increased across the whole product offering . The high-margin items have stayed the same.

Product differentiation

By having a strong and recognizable brand, the company can afford to put out merchandise. Starbucks holiday-themed mugs and localized artwork on them are a big part of the exposure. The merch cabinets and tables are usually near the counters or areas where there’s a longer dwelling time.

The revenue isn’t coming just from the beverages alone. Starbucks did an amazing job of offering non-caffeinated beverages including kids drinks and teas which were introduced after partnerships or acquisitions of Tazo and Teavana.

Starbucks started to diversify its products, pushed them into retail space, and also added teas.

The big drivers are also snacks, wholesale beans, before-mentioned merch, and coffee equipment.

Key takeaway #4 — diversify and expand

While the product is one of the key components of a successful business think about its potential upgrades. Keeping the core you can diversify the offering (and acquire new revenue channels) by expanding into different verticals but staying inside your core company values.

Experience is More Important Than The Product Itself

With a distinctive brand identity, Starbucks shops are easily recognizable anywhere in the World. For a global brand, this is one of the mandatory elements. Each franchise is slightly different than the other — Starbucks in the posh downtown area will have a different feel than the one on the Student campus or at an airport.

But each store follows certain guidelines which are prescribed. In tech and startups, product development follows a concept called minimal acceptance criteria . In other words, what are the lowest common denominators the dev team needs to do before it can be rolled out as a published version.

For Starbucks Cafes, even though the store managers have a certain freedom to run and maintain the facility, they have to ensure to deliver the core Starbucks qualities.

• Indie playing music
• Comfortable (community) tables for remote work
• Reliable wireless connection
• Charging Outlets

These shouldn’t just be taken for granted. People love some sense of predictability in their lives. How many times have you been on the lookout for Starbucks when visiting a new country just to take advantage of their wi-fi connection and use of restroom? From that perspective, Starbucks serves as a transactional facility offering other services which don’t have much to do with coffee.

The main idea is, coffee is not the product that is being sold at Starbucks cafes — the whole thing is a social experiment of creating a meeting place between people. It serves as some sort of oasis for meeting up with friends, having a snack and a cup of coffee in a comfy chair while listening to the latest Indie playlists . Starbucks is less in the coffee business as is in people’s business as well.

“It’s not Starbucks coffee you are getting, it’s the Starbucks experience. “

By calling your name and writing it on the cup, it doesn’t just inform the customer that their drink is ready. It allows a more personalized service since we love hearing and seeing our name.

Smells and sounds

Starbucks Sounds

Chances are when you go to Starbucks you don’t ever hear the music. But it plays an important role nevertheless. Starbucks playlists are carefully curated to help create that ambiance of a neighborhood coffee shop.

It has been a piece of the Starbucks experience for over 40 years already . The songs and tracks are carefully curated way ahead of time. These handcrafted playlists usually consist of indie, feel-good songs, pop, alt-country to season-themed or even classical playlists during holidays.

In 1999, Starbucks even acquired a Bay Area music store to launch its own branded coffeehouse and later on, even a record label. In the early 2000s, Starbucks sold CDs in the store until the format decline. In 2016, Starbucks partnered with Spotify . Through the mobile app integration, Spotify plays music as part of the app. In-store listeners can take a look inside to identify the artists and save the tracks to their playlists.

Holly Hinton and David Legry, the in-house music curators, are responsible for what gets played. What sounds like the best job in the world, actually is. Their sole work is searching for the right tracks and artists that they can see are fit to be played in the coffee shop.

In an interview with Fast Company , Holy Hinton said:

“We want our customers to walk in and have a ‘What’s that song?’ moment. We want them to hear interesting, cool music that they might not hear when they turn the radio on. It’s music that we think is cool and would sound beautiful in the coffee shop. It’s the music that we’d want to hear on Sunday morning when we’re reading the paper and drinking coffee. It’s a friend-to-friend personal. And we’re lucky to be able to be a part of that.”

To localize the experience, every region is slightly customized regarding the music, while still carrying the same vibe Starbucks customers are used to. This way, whenever a customer comes to the cafe, within the first few seconds, they feel accustomed based on the music alone.

The interior design

Every piece of furniture and interior is carefully planned to conform to the standards of the homey coffee place.

To get their store right, Starbucks interviewed hundreds of coffee drinkers to get as much information which they could use to build a perfect coffee shop. The overwhelming consensus actually had nothing to do with coffee; what consumers sought was a place of relaxation, a place of belonging.

If we go back to Howard Schultz’s deciding moment from the Milanese coffee shops, it shows he managed to do just that. Create a community space as a second home. It’s somewhere where people meet, it’s where you can take someone for a first date or even get some work done at the large community table.

In the book Starbucked, freelance journalist Taylor Clark claims, that “The round tables in a Starbucks store were strategically created in an effort to protect self-esteem for those coffee-drinkers flying solo. After all, there are no “empty” seats at a round table.”

If we looked at the interior, the counters, chairs, and wardrobes are built out of natural materials like warm woods and stone. In some stores, you would find cozy armchairs as well. With the Shared Planet initiative , they doubled down with environmental sustainability in mind and employing local craftsmen to do the job. The stores are built from reused and recycled materials wherever possible.

Most of the new stores that are being built are a part of the LEED Certification program (Leadership in Energy and Environmental Design).

Starbucks differentiates from three general looks with the addition of concept designs:

• Heritage coffee houses reflect the history of the place where the store is located. At Pike Place, the coffee shop reflects the merchant trading roots with worn wood, stained concrete or tiled floors, metal stools, and factory-inspired lighting. Even more sophisticated is the New Orleans inspired coffeehouse showing the rich music history.
• A “Louisian merchant in the early 1900s” inspired heritage coffeehouse with vintage trombones light fixtures. Located in French Quarter, New Orleans.
• Artisan stores echo the industrial past of urban markets, taking inspiration from the Modernism of the 1930s. This motif celebrates simple materials like exposed steel beams, masonry walls, factory casement glass, and hand-polished woodwork in a creative gathering place for culture and the arts.

• Regional Modern are localized stylized coffee shops. The interior is spacious. comfortable and welcoming. The bright, loft-like, light-filled spaces punctuated with regionally inspired furniture and culturally relevant fabrics create a calm and contemporary respite from the clamor of the fast-paced world.

• Experimental — with growth and a plethora of locations comes more daring and innovative designs. Unique designs such as the reimagined drive-thru in Colorado , the Swiss Train contemporary mobile coffee space from Geneva Airport to St. Gallen or one of the beautiful Shinto shrine-inspired coffee shops in Japan

‍ Starbucks Reserve

To combat the upscale coffee market which ironically has to thank Starbucks for creating fertile grounds of demand for premium coffee, Starbucks started opening up so-called Starbucks Reserve stores. These are luxurious, beautiful, and magnificent stores where they roast premium, rare beans and experiment with different brewing techniques.

CNN Money described the store concept as "an open, marketplace-style" with a Princi bakery counter, a full liquor bar, and a Reserve coffee bar, with tables, lounge areas, and two fireplaces.

"Our Reserve store takes the best of coffee craft as well as artisan baking and layers in a marketplace-style customer experience creating a space that has both energy and moments of intimacy," — Liz Muller, VP of Creative, Global Design & Innovation at Starbucks

Coffee shop locations

In any high-traffic area in the city where Starbucks is located, you almost have a feeling their shops are everywhere. You would be partially right — Starbucks are strategically located in areas with high appeal. Similarly to Walgreens, Starbucks chose the concept of the convenience store, always located in an area of larger foot-traffic .

Source | A snapshot of Starbucks shops in Seattle

Arthur Rubinfeld who is responsible for Starbucks’ location selection, explained there are about 20 or so analytic experts around the world who are assessing different factors of the appropriate area for the new Starbucks shop .

Key takeaway #5 — spoil your customers

Think beyond the product and identify what else can you do for the customer to add you in their daily, weekly routine. Customer support excellence is mandatory, so think further and in the direction of the place’s ambiance including smells and sounds.

Breaking down the Brand and Messaging

Bill Macaitis, former CMO of Slack said it best - “The brand is the sum of all customer touchpoints your customers have with you at any point”. With the food and beverage category, this is even more important.

By introducing and creating a culture of coffee drinking, Starbucks had a major opportunity to create intimacy with the customer. In Italy, coffee culture is a part of every day and the same culture was slowly getting familiar to the new audience.

Because of the personal nature of coffee and frequency of visits, this relationship-bonding happened much faster than in other fast-food joints, especially since in the early years of Starbucks there was no competition.

Brand and product

The bright white cups with the green siren are the first noticeable brand. But it goes beyond that. You will notice that Starbucks never offers any sort of discounts or actions like buy-one-get-one-free. That’s sort of action dilutes the premium feel of the brand. You can get a free coffee drink for your birthday, but the underlying reason for that is for a customer to develop a positive connection with the brand and company.

The most valuable assets of the regular Starbucks coffee shop can be broken down:

☕Free reliable Wifi - besides oxygen, water, and sleep, the online connection has become a necessity in modern civilization. Whenever you’re in a new place and you need to connect, one of the first options would be a Starbucks shop.

☕Comfortable seats and community tables - whether you’re there to take a breather or putting some hours of online work or organizing an impromptu study group, there’s a Starbucks location that can provide those demands. Most of the Starbucks are generously equipped with charging outlets as well, so you can get another drink after your focus is starting to drop… and then another… And another...

☕Friendly baristas - customer service is ingrained in the retail work description yet rarely done the right way. With L.A.T.T.E. method (Chapter 8 - Disciplined Action) and general training of Starbucks partners , each interaction with the customer is there to provide a positive experience. Calling people by their name, timely service, and the patience of crafting ridiculously complex drink orders .

☕Brand colors and materials — the nature-influenced interior with dark colors and wood finishes are giving a feel of hominess. Sometimes a Starbuck visit is just a pause you take in a day to relax your eyes.

☕Music and smells — coffee and snacks just smell amazing. Let’s take that for granted. The music serves a purpose as well as bringing an ambiance that is great for having a conversation or focusing on work (or your date).

Key takeaway #6 — positive interactions

The brand is the sum of all touchpoints the customer has with the company. This goes beyond the product and customer service. Think about every single interaction customers have with you and make them positive.

Starbucks Master Example of Mobile Retention and App Rewards

Starbucks mastered the mobile game at the right time. Dabbling with mobile technology since 2007, Adam Brotman spearheaded the platform to maximize the effect. The big challenge was to align it with the brand.

“We don't look at mobile in a vacuum. We have an overall digital strategy that's all about building relationships with our customers, and that strategy runs across a number of digital touchpoints. We're looking at mobile, Web and social to think more holistically about how we engage with our customers and tell our story." — Adam Brotman, Chief Digital Officer

In the Manifest survey in 2018, 500 smartphone owners rated their satisfaction using food apps. Starbucks had the most popular and regularly used loyalty rewards app — 48% of users used it on a daily basis.

Four years later, Starbucks remains one of the most popular apps, ranking number 6 on the list of most downloaded Food & Drink apps. 

The mobile switch paid dividends with time. Instead of support and enhancing physical visits to the store, the channel began bringing in 23% of all the revenue.

Ordering ahead of time and user experience

For a food mobile app to be successful, it must bring value to the user, be easy or even fun to use and it should have entertaining, dynamic content.

The design has to adhere to rules of the brand, achieve a consistent visual look and continuity across all touchpoints.

The mobile app design is no different than the rest of the materials Starbucks uses.

Digital Engagement paid tremendous dividends for the company.

Starbucks CFO Scott Maw said almost all of the company’s same-store sales growth has come from customers that have digital relationships with the company and those that are in the Starbucks Rewards program.

User-friendly design

This is the minimal and easiest thing to leverage on. With a strong brand, it should not be hard to create an appealing visual interface and create logic flow and transitions or continuation to the desired action.

Engaging loyalty program

Retention is the name of the game. If a customer trusts you well enough to download your app, you have a unique opportunity to convert him or her to be a regular user.

Starbucks has a similar strategy with the reward system. Every day there’s a slight reward, whether it’s collecting points or showing the current mouth-watering warm drink inside the app. It’s sticky and you can’t help but wish for a warm beverage.

Mobile pay and ordering

The North American market is known for heavy mobile use . By prepaying and using the device to quickly go through the ordering process, the customers feel more efficient and slightly more an advantage than the other poor souls who still buy their coffee with credit cards or cash.

Integration with other platforms and services

Partnerships are ways to get tons of new users with one big swoop. Spotify acquired one million users a few days after partnering with Facebook (Source) and Facebook had one sexy product update from it as well. For similar reasons, Starbucks used Spotify to enrich the experience of the mobile app.

Now playing highlight in Starbucks stores (Music is a big part of the brand and having perennial "Shazam" embedded brings seemingly insignificant, yet positive experience.

UX/UI — breaking down the mobile app design

Out of this world personalized experience.

The app remembers your favorite order. This is ingenious. We’ve mentioned how coffee represents a daily habit - if Starbucks manages to infiltrate itself into your habit loop, they’ve won. They have become a part of your daily routine. Stacy always stops at the same drive-through Starbucks, orders her Grande Latte with Soy Milk at 6:15 am before she checks-in at her job. When that’s her daily or even only a few time per week routine, the LTV for that kind of customer is absolutely amazing!

Every little detail counts. For instance, here’s the customized greeting each time a user opens the app’s Home tab.

Gamification

Most addictive phone games always give you something to do if you’re not using them for a while. From Candy Crush Saga to Supercell’s engineered mobile drugs like Clash of Clans and Boom Beach, the mechanics of engagement are carefully predicted for maximum time and cash spend. These games start with low difficulty. They are fun, colorful, and offer an entertaining introduction to their mechanics. But you can play all day, and after a while (on a free tier) you’re locked out of the game.

To continue playing, you can either (literally) buy your time or increase your chances of success with extra loot, power levels, or something similar.

Starbucks uses a similar principle of gamifying its mobile app. There’s a lot of value upfront (pay with a card, skip the line, earn credits for free drinks) but it serves the company’s profit. You get hooked to those stars (credits) which are stacking in your beautifully designed mobile app.

There are also challenges for extra Starbucks points (who can say no to double credit days?)

With the app, Starbucks gets you to try new products and thus increase the range of products you are consuming AND it gives the company an opportunity to increase the average order revenue per customer.

There’s a thin line between being overbearing and being just enough engaging. And at the same time, they have to be very strategic on the number of features offered. Sean Ellis , the OG Growth hacker said the product is ready to ship once all the unnecessary features are taken away (kind of the same mentality as per good design). Luckily with MILLIONS of users, Starbucks can apply some Data Science magic and figure those timings for every type of person.

Personalization goes even further - it tries to give a similar experience as to visiting the store ( source )

Starbucks Loyalty Program on triple-caffeine nitro power

The Starbucks Rewards are dead simple - the more you spend the more stars you get. Besides the stars, the rewards program offers birthday rewards, phone payments, paying ahead, free in-store refills and special offers and events for members. As expected the experience is personalized for each user.

The Rewards work like gangbusters! More than 14.2 million active members in the U.S. are invested in the loyalty program and the mobile strategy has seen an 11% growth in users in Q2 2018 . The gamification of the program and “spend more, earn more” in some cases represent 39% of the entire chain's sales .

Here’s what’s ingenious about the mobile program. Even though there are people who prefer to have the minimum number of apps on their phone and think twice before opening the doors for the elite club on their smartphone storage, the Starbucks app is a trojan horse of benefits - even if you don’t care about collecting stars, it’s tough to say no to the free birthday drink or the convenient mobile pay.

Online Ordering and easy payments flatten the friction of getting the product. Just like the Amazon 1-click purchase or Slack’s onboarding sequence , the same goes for picking up a mocha and Petite Vanilla Bean Scone. At first, Starbucks had some issues, since the mobile members had to wait in line just like the others, but Starbucks responded by adding dedicated stations for mobile order-ahead customers.

Members can skip the waiting line and enjoy the jealous looks while feeling elite of themselves.

The beauty of the app isn’t giving one big benefit of a quicker caffeine shot to the member, but it serves as an upsell marketing tool. The Starbucks app is a delivery method for presenting new items ahead of time. These generate interest and coupled with email notifications, it gives their customers something to look forward to.

To keep the retention flat, the Rewards program has “punishment” traits tied into it. If you’re not using the stars for visiting the cafes you start losing them. This psychological trick, known as The Endowment Effect , helps to nudge those people who are affected more about losing something they already have.

The Mobile part is one of the main drivers of customer retention and has proven to raise the average order size per customer. Since the frequency of orders and visits is so high, the LTV per customer contributes to that impressive double-digit growth in the first years.

Key takeaway #7 - APP A mobile app for a product that is being used on a daily basis and is in the lifestyle category is not a nice to have, but almost mandatory. If you want to stay a part of your customer's daily lives, bring the entertainment, rewards, and gamification to keep retention and customer satisfaction high. You will be rewarded with increased LTV.

The Success Flywheel of Starbucks

The easiest way to figure out and identify the success of a company is to apply the try-and-true framework. Jim Collins, the author of Good to Great, Built to Last claims all mega-successful companies have to figure out the Flywheel principle .

To become an unstoppable juggernaut in its own field, Starbucks had to align 5-6 different elements in three categories:

• Disciplined People
• Level 5 Leadership
• First Who… Then What
• Disciplined Thought
• Face the Reality
• Hedgehog Concept
• Disciplined Action

Culture of Discipline

• Leveraging the Technology

Imagine the concepts as drivers of one giant flywheel. Let’s say you’d want to move a giant stone wheel that sits on an axle. It would take a lot of effort to get it moving at first. After gaining speed it would need less and less power to keep it going. After gaining momentum, the same wheel would run on its own with little interaction. Just like the extremely simplified quote says; “If it ain’t broke, don’t fix it.”

Disciplined people - Starbucks Level 5 Leadership

Excerpt from Good to Great -> “Level 5 leaders display a powerful mixture of personal humility and indomitable will. They're incredibly ambitious, but their ambition is first and foremost for the cause, for the organization and its purpose, not themselves. While Level 5 leaders can come in many personality packages, they are often self-effacing, quiet, reserved, and even shy. Every good-to-great transition in our research began with a Level 5 leader who motivated the enterprise more with inspired standards than inspiring personality.”

There’s no doubt, Starbucks CEO Howard Schultz possesses the characteristics and personality traits of a Level 5 leader. The ambition alone to introduce a new cultural concept in a new market sounds incredibly daunting, but to play it right with the shareholders, customers and their own people sounds impossible.

But that was the initial idea, a moral standard. The mission statement of Starbucks is:

“to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”

Let’s break this down into two pieces.

Inspire and nurture the human spirit .

The people, customers, and partners (staff) are the most important assets of any company. The first part of the mission statement explains that in a split-second. The relationships within the company have to be nurtured and supported while exuding warmth and friendliness.

Howard Schultz has shown respect for the mission by developing programs for their own people, which include free education, health insurance and even a share in the Starbucks company.

“One person, one cup and one neighborhood at a time .”

The second part stresses the importance of gradual improvement. Each interaction with a customer, each cup of coffee made hold a large amount of responsibility to deliver the right experience. The neighborhood part reminds the staff and the customers that the stores pay special respect and attention to the place where they are located.

In the article Inside Starbucks’s $35 Million Mission , author Sarah Kessler describes how Starbucks runs the “ Leadership Lab ” — part leadership, part training conference for 10,000 store managers.

Disciplined thought

Face the Reality — When stuff gets hard, leaders don’t turn away from the problem or worse, get busy with mundane tasks, deceiving themselves they are working. Closing your eyes to the reality means you’re on a great way to a downward spiral.

In 2008, Howard Schultz got reinstated by the board as CEO. The sales and shares were dropping. The brand and the culture of Starbucks were deteriorating rapidly. The magical experience was a shadow of its former self.

Schultz decided on a radical idea to close all the stores and retrain in order to inflict the importance of the Starbucks vision and mission. Tied into this transition was closing numerous shops and letting go of hundreds of employees. The ordeal cost the company 6 to 7 million dollars .

In 2018, Starbucks closed the doors again in order to put the staff through racial anti-bias training. The temporary closure cost the company between $15 - $20 million dollars

But it was necessary and long needed. The company picked up from the bottom just like in Drake’s song and has been rapidly growing in the world’s map as well as on index stock charts.

The Hedgehog Concept

The term Hedgehog concept introduced by Collins is some sort of a marriage consisting of a Venn diagram and three major ideas. Jim Collins thinks that in order to have a chance to be the best in the world you have to possess all three:

• The Elite Skill - You will have to be the best in your area of expertise. Constant learning, innovating and moving the boundaries are expected from the movers and shakers of the world.
• Deep Passion - Someone who grows a business will eventually (and continuously) encounter major obstacles where the skill isn’t going to be enough. The grit, powered with a deep passion and a reason why is arguably even more important than the knowledge alone.
• Ability to generate revenue - Understanding of what drives the economic engine is the third piece of the puzzle that completes the concept. No business can survive without sustaining itself and its people financially.

Schultz possesses all three: the Stanford education armed him to become shrewd and dangerous in the business world with a deep understanding of the economic machine while he stayed in love with the company and continued to deeply care for its people and the customers.

The second part of the hedgehog concept is the sheer simplicity of your objective. When it comes to specializing and becoming the best in the world, you need one clear statement which completely prevails over all the others.

The hedgehog is the exact opposite of the fox concept. Foxes are cunning, smart and resourceful animals who take any opportunity to get ahead using any tactic they can think off. Yet when they encounter and attack the hedgehog, the hedgehog simply rolls up into a ball and protects itself with its spiky hide.

The hedgehog companies have one major driving goal that is ingrained as the cornerstone of its business. In Starbucks, it’s not the coffee quality, but it’s the deep desire to create an experience for their customers. Everything is tied into this.

Sometimes, achieving massive rapid growth for the growth sake reveals cracks in the system if it’s not solid. In 2008, when the company was on the decline, Schulz looked at the strategy of the past few years and, in a letter penned company-wide, explained that Starbucks had “invested in infrastructure ahead of the growth curve” and it was time to “shift our emphasis back onto customer-facing initiatives.”

Imagine, the Starbucks insane growth pace required to hire 1,500 new employees a week.

Disciplined action

The success of anything in our lives is in the hands of people. It always is the #1 element in any company.

“In determining the right people, the good-to-great companies placed greater weight on character attributes than on specific educational background, practical skills, specialized knowledge, or work experience.”

When the quality of the work started slipping. Schultz had to close down hundreds of shops for a training day. It was a necessary decision to refocus, restructure and boost Starbucks employees to work and deliver on the right things and to deliver the experience as it was intended in the first place.

When faced with a difficult customer or a problem, the Starbucks partners (employees) are taught customer service by using a L.A.T.T.E. system. The acronym helps baristas deal with any situation in the store.

• L isten to the customer
• A cknowledge the problem/situation
• T ake actions and solve the problem
• T hank the customer
• E xplain what you did

The simple system isn’t there just to provide clear guidelines but it also boosts motivation and willpower among employers. In the book, The Power of Habit , Charles Duhigg wrote that the LATTE system prevented the customer service meltdown , and sustained willpower throughout the day.

In the end, customer service is there to deliver and exceed the experience which is tied to the brand. Nothing is as important as delivering the service. 

“[Employees] are the true ambassadors of our brand, the real merchants of romance and theater, and as such the primary catalysts for delighting customers. Give them reasons to believe in their work and that they’re part of a larger mission, the theory goes, and they’ll in turn personally elevate the experience for each customer–something you can hardly accomplish with a billboard or a 30-second spot.” — Excerpt from book Onward, Howard Schultz

Technology Accelerators

For a globally recognizable brand like Starbucks technology plays a major role in the expansion. The Starbucks app and the emails alone played a significant role in the company’s growth.

According to Collins, technology accelerators have to be carefully selected. Companies had to sift through the emerging technology, identify and select the right ones and gradually introduce them in the business model.

The Hedgehog Concept would drive the use of technology, not the other way around — Jim Collins

Companies that jumped the gun burned badly.

In fact, Jim Collins discovered that more than 80% of great companies didn't rank technology as one of the top five ranking factors for success.

“Those that stay true to these fundamentals and maintain their balance, even in times of great change and disruption, will accumulate the momentum that creates breakthrough momentum. — Jim Collins

Down to the core, Starbucks has one secret ingredient to thank for — knowing their customers. Data analytics. According to Starbucks, this function uses “ methodologies ranging from ethnography to big data analytics … that help support Starbucks pricing strategy, real estate development planning, product development, trade promotion optimization, and marketing strategy.”

Starbucks contracts with a location-analytics company called Esri to use its technology platform that helps analyze maps and retail locations. It uses data like population density, average incomes, and traffic patterns to identify target areas for a new store.

The Crawl, Walk, Run Concept

The gradual introduction of technology is a part of the hedgehog concept. Technology is a major proponent of business growth however if it doesn’t tie into the one simple concept , the company has to be disciplined enough to say no to new opportunities.

Eventually, they can adapt the technology in their concept which turns the massive flywheel forward.

In Starbucks sense, they seem like they embrace technology. They started out with gift cards and pay-ahead mobile purchases. The next step was adding the Starbucks Rewards program to cultivate upsells and raise the LTV per customer. And today with big data, AI, and predictable algorithms they maximize the relationship with the customers.

Key takeaway #8 — the flywheel concept

Successful companies that persevered and thrived with time have found and adopted the Flywheel concept. Focusing on the essentials of the business, working with the right people in the right places, and maintaining discipline is the only way for continued sustainable growth.

Starbucks Vs the World

Competitors.

Starbucks enjoyed the blue ocean marketplace as a premium coffee culture experience provider. 

But as soon as competitors noticed Starbucks discovering a new opportunity they had to react quickly. McDonald's and Dunkin’ Donuts were the big ones that introduced their own versions of coffee-to-go. Better than instant coffee and convenient while on the go, the two competitors did enjoy new revenue stream of introducing coffee; however, as companies, they had to keep the focus on what they are good at — McDonald's with their fast food burgers and fries and Dunkin’ Donuts with well… donuts. DD does serve coffee but had no intention to put more emphasis on it until the late 1990s .

Starbucks kept the lead in the coffee concept because of its focus on the coffee culture and holistic concept of their brand, especially customer service. This point can be seen as soon as you look at international markets. Dunkin' Donuts’ international revenue in 2018 contributed less than 4% of total sales, while roughly 30% of Starbucks' consolidated net revenues in the same period were attributed to markets outside America.

When international expansion goes right

When you get it right and you know you have the brand, processes, and culture down, you can move outside. When Starbucks expanded its adopted “Coffee culture” to new markets it could follow its own tracks again. In many countries, especially Asian nations the idea of a coffee culture was new, fresh, and exciting.

To overcome the culture gap, Starbucks sought partnership through direct investments and joint ventures instead of direct franchising . This solved two major problems.

First, they relied on local retailers who already had experience and experience in the local markets. They married the coffee culture idea with market research of the new areas to discover regional customers’ tastes and preferences. After that, they just had to deliver the employee training, workflows, and the product itself.

Secondly, they acquired and absorbed the entire pieces of coffee markets , such as Coffee Partners in Thailand and Bonstar in Singapore. All in one big swoop.

But even today a Starbucks café is opened every 15th hour in China. It already operates more than 3,000 stores in China and plans to add 2,000 more by 2021 . Seoul has the most Starbucks cafes in any city ( 284 ).

Starbucks is present in 6 continents and in more than 72 countries and territories. But it wasn’t always smooth sailing for the old Starbuck.

And when it doesn’t go so well

While Starbucks had amazing success in Asian countries, they hit a snag in Australia.

In 2008, they closed two-thirds of all stores.

The reason?

Australia is already known as one of the hardest markets to get into in the first place and they are very proud of their coffee culture. The flat whites, coffee art in ceramic lattes have been served for dozens of years at beloved local cafes and by baristas who knew what they are doing.

What Starbucks was doing in the United States was introducing the coffee culture in the new market because it was non-existent before. But in Australia, this model didn’t fit in at all.

In 2008, Starbucks closed two-thirds of all the stores. The prices of Starbucks’ relatively common-tasting coffee (compared to established coffee shops) were pricier than the local solutions and managed by young students who didn’t have the level of appreciation of either the coffee culture and/or Starbucks as a brand.

Key takeaway #9 — establish yourself

Follow the winning formula of developing the markets first and turning into a product innovator after you have established yourself. Forcing the innovation where it’s not perceived as such, is waging a losing battle.

Starbucks on Social Media

The website is simply designed with an intention to present the latest seasonal product in the Starbucks shops in the first fold. The focus of the homepage is also on advertising the Starbucks Rewards program.

According to SimilarWeb, it attracts 18.9M visits per month, with an average of 2 minutes and 3.2 page views per session. Starbucks site is the 9th top ranked site for Food and Drink category in the world

The Youtube channel was established at the end of 2005. After 16 years it managed to acquire 335,000 subscribers, which isn't’ that much if we take the size of the company into consideration.

The most successful videos are close to 10 million views; however, they are short, 15-seconds clips of the product. The channel moderators are not participating in the comment sections.

Luckily there’s not much competition on YouTube; however, as a highly visual channel, Starbucks could advertise their mobile app and Starbucks reward program using socially-conscious values, product innovation, or sustainability programs.

On the other hand, Instagram is doing absolutely amazing. Naturally, since the best Starbucks customers are the ones who have been using their mobile devices for ordering and participating in the Starbucks Rewards program

Starbucks Instagram uses a mix of images and video clips mostly displaying their well-designed cups. The posts are mostly re-shared (“regrams”) of other Instagram users. With this tactic, Starbucks incentivizes UGC (user-generated content), since Instagram users have the chance to be regrammed and have their Starbucks shot seen by 17.8 million followers.

Pinterest is another great visual platform where images are split into different categories: from coffee recipes, coffee photography to store designs and world-recognized Starbucks cups.

Pinterest receives 10+ million monthly views and has 443,600 followers.

Even though their daily support is dropping, Facebook is still being used as one of the channels where Starbucks shows its videos and posts.

On Twitter , Starbucks shares its globally conscious ideas, news, and stories about the company and its products. Twitter also serves as a chance to (as in Instagram) retweet other users’ posts.

Starbucks likes to reshare the positive messages of happy users who had a positive experience at one of their stores

Since Starbucks' success mainly lies in their visual branding, they use social media for their brand awareness and in a Facebook sense, pushing the mobile app downloads.

Key takeaway #10 — delegate your resources

When using social media, identify which social media platform brings the best results. If your users are primarily on mobile devices, Instagram would be a smart choice. Delegate your resources to the best-performing channel.

Starbucks Corp. has become a worldwide success by sticking to its hedgehog concept. The realization of being customer-centric in the practical, not just theoretical sense laid the foundation of expansion in North American markets as well as international ones.

When all of the decisions are catered to the concept of serving their customers, including using technology as accelerators, there’s nothing to worry about in their future.

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Coffee 2016

Andrea Illy is CEO of the global premium coffee company that bears his family’s name. As one might expect, he is passionate about coffee – its science, its health benefits, its taste, its beauty. Illy also has a dream that someday soon the coffee market might be transformed into something approaching the market for wine. Where connoisseurs discuss the fine points of various origin coffees and blends, where customers are willing to pay a premium for the finest examples of the coffee-making art, and the growers, roasters and baristas will be compensated fairly for the expertise they contribute to every cup.

Unfortunately, the current coffee market differs from such an ideal. Coffee growers in most parts of the globe work at a barely subsistence level. One bad harvest (made all the more likely by the ravages of climate change) or a sudden decline in the commodity price of coffee can drop them below subsistence to hunger. Even in good times, growers have little incentive to improve their operation – they have minor contact with the roasters or customers and no knowledge of how their crops get translated into the cup. This disadvantages not only the grower but also the consumer – coffee sourced from good quality beans is hard to find.

lly believes that the solution to the sad state of affairs is to initiate a “virtuous circle” that draws the grower, the roaster, the barista and customer together. Growers with better knowledge of the market will work to improve their crops or experiment with new varieties. Roasters and preparers will educate their customers as to the qualities of various beans, roasts and preparations. Customers, in turn, will be willing to pay more for the best beans and that premium will be sent back up the chain to pay for even more quality and variety. And so on.

Certainly there have been some positive signs. Indeed, many observers argued that a “third-wave” of transformation in the coffee market was already starting. (The first wave is said to have occurred when Maxwell House and Folgers made coffee a mass commodity, the second wave when Starbucks initiated a move to quality and higher prices.) Specialty coffee roasters had worked to build cafes and brands around origin-based beans sold directly to the roasters without reference to the commodity prices of coffee. With these third-wave roasters, every coffee came with a story of its origins and growers could count on occasionally eye-popping premiums for their beans.

As yet, specialty coffee represented a small sliver of the overall market and there were other signs that it might not ever grow beyond a small circle. New trends like coffee-based drinks and single-portion coffee in pods (e.g. K-cups, Nespresso) actually shifted more of the value-added towards roasters without a premium for growers. A consolidation was taking place among mass roasters that was even sweeping-up third-wave roasters in its wake. Observers argued that could lead to greater uniformity with even less emphasis on origin-based, direct-traded coffee.

Illy’s hope is that someone would come up with an innovation that would solidify the beginnings of the third wave and help reshape the market. Such a change would not necessarily have to involve illycaffè; Andrea Illy believes as the world’s premium brand, an increased emphasis on quality in the market would only help his company. The most important thing was to make the coffee supply chain more equitable and coffee better-tasting.

Case Study Of Starbucks: How Starbucks Became The Coffee King?

Supti Nandi

Updated on: April 25, 2024

Starbucks, a brand that became synonymous with coffee has created a sensation in the world with its coffeehouse culture. Have you wondered how? Well, to answer this question we will delve into the case study of Starbucks.

Stay tuned!

(A) Starbucks: A Brief Overview

Let’s buckle up for a Starbucks journey! Founded back in 1971, this coffee giant now reigns supreme as the world’s largest coffeehouse chain, with its home base in the city of Seattle, Washington.

Before diving deeper into the Starbucks case study, let’s have a look at the company’s profile-

Fast forward to November 2022, and you’ve got Starbucks waving its coffee wand in a staggering 35,711 stores across 80 countries. And when you zoom in on the U.S., you’re looking at a whopping 15,873 Starbucks hotspots. 

Here’s the scoop – over 8,900 are Starbucks-run, and the rest are running under licensed partnerships.

Now, let’s talk coffee vibes. Starbucks is the unsung hero of the second wave of coffee culture, dishing out an array of coffee delights. Think hot espresso, chill Frappuccinos, and a lineup of pastries and snacks that’s strong enough to trigger your taste buds.

Oh, and did you know some Starbucks treats are exclusive to certain locations? How? You may wonder. Well, here’s a bonus – most Starbucks joints worldwide offer free Wi-Fi. Coffee and connectivity – a match made in heaven.

So there you have it – the Starbucks saga! 

(B) Business Overview of Starbucks Case Study

Understanding the business perspective is one of the essential parts of the Starbucks case study. Reason? You will get to know how Starbucks is performing in the market in terms of financials and business.

Go through the table given below-

In today’s date, the coffee giant is flexing a market capitalization of a whopping $105.82 billion – that’s some serious coffee beans.

Now, rewind to 2023, and Starbucks made it rain with a revenue of $35.976 billion. But what about the nitty-gritty? Operating income in 2022 hit $4.62 billion, while net income settled at $3.28 billion. These aren’t just numbers; they’re the financial pillars of Starbucks.

That’s not all!

Hold onto your coffee cups; we’re diving into assets and equity. Total assets in 2022 clocked in at $27.98 billion – that’s like a treasure chest of coffee goodness. But here’s a twist – total equity dipped to -$8.70 billion. It’s like a plot twist in a coffee-fueled drama.

Now, let’s talk about expenses and profits. In 2023, expenses tallied up to $30.584 billion, but here’s the kicker – profits soared to $25.108 billion. 

That’s like balancing a delicate espresso shot with a mountain of whipped cream.

In a nutshell, Starbucks isn’t just brewing coffee; it’s a financial powerhouse, stirring up a caffeinated storm in the business world.

(C) History of Starbucks: Timeline & Key Events

Coming to the third part of the Starbucks case study, let’s delve into the history of Starbucks-

Founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker at Seattle’s Pike Place Market, Starbucks underwent pivotal changes in ownership and leadership. In the early 1980s, Howard Schultz acquired the company and transformed it into a coffee shop, introducing espresso-based drinks after being inspired during a business trip to Milan, Italy.

Schultz served as CEO from 1986 to 2000, orchestrating an expansive franchise expansion across the West Coast.

Orin Smith succeeded Schultz, focusing on fair trade coffee and boosting sales to US$5 billion. Jim Donald took the helm from 2005 to 2008, overseeing substantial earnings expansion. Schultz returned during the 2007–08 financial crisis, steering the company towards growth, expanded offerings, and a commitment to corporate social responsibility. Kevin Johnson assumed the CEO role in 2017.

In March 2022, Starbucks announced Schultz’s return as interim CEO in April 2022, with Laxman Narasimhan appointed to succeed him in April 2023. Narasimhan assumed the position earlier, in March 2023.

Beyond beverages and food, Starbucks stores offer official merchandise and select locations to provide “Starbucks Evenings” with beer, wine, and appetizers. The company’s products, including coffee, ice cream, and bottled drinks, are available in grocery stores globally. The Starbucks Reserve program, initiated in 2010 for single-origin coffees and high-end shops, has evolved. Starbucks operates six roasteries with tasting rooms and 43 coffee bars. 

The company faced controversies but maintains substantial brand loyalty, market share, and value. As of 2022, Starbucks ranks 120th on the Fortune 500 and 303rd on the Forbes Global 2000.

(D) Significance of Logo in Starbucks Case Study

Let’s delve into the details of the Starbucks logo evolution. In its inception in 1971, the original Starbucks logo featured a complex design comprising a two-tailed mermaid or siren, encompassed by a wordmark. This design was a visual nod to the brand’s early identity and origins. The mermaid, with its twin tails, was a dual representation of the sea and Seattle, the birthplace of Starbucks.

As the brand progressed, the logo underwent a significant transformation. The evolution saw a shift towards simplicity, as the wordmark surrounding the mermaid was phased out. This marked the beginning of the modern Starbucks logo we recognize today. 

The current emblem showcases a simplified and stylized green siren enclosed within a matching green ring, emphasizing a cleaner and more focused visual identity.

Beyond aesthetics, the modern logo carries symbolic weight. The green mermaid within the circle has become an iconic representation of Starbucks’ commitment to delivering high-quality coffee experiences. 

Additionally, it reflects the brand’s emphasis on creating a sense of community that extends beyond geographical boundaries.

In essence, the evolution of the Starbucks logo is a journey from a detailed and intricate design to a streamlined and symbolic representation. It mirrors the brand’s growth, emphasizing its roots, dedication to quality, and the broader cultural impact it seeks to make through coffee and community.

(E) Market Penetration Strategy: How Starbucks became the coffee king?

In this section, we will look into the key plans and actions that helped Starbucks gain a strong foothold in the beverage and cafe industry.

Starbucks continues to blend innovation and growth, navigating the ever-changing landscape of the coffee industry.

(F) Starbucks Entry in India: Core of Starbucks Case Study

In 2012, Starbucks initiated its venture into India through a significant 50:50 joint venture with Tata Consumer Products Ltd. The inaugural flagship store, which opened its doors on October 19th, 2012, found its home in the historic Elphinstone Building in Mumbai. 

The architectural design of this store ingeniously merged Starbucks’ global coffee legacy with the vibrant local culture, creating a welcoming space for community and connection. Over time, this Mumbai location evolved into India’s first Starbucks Reserve® Store, setting the stage for an elevated coffee experience.

(F.1) The Starbucks Reserve® Store Unveiled: A Coffee Lover’s Haven

The introduction of the Starbucks Reserve® Store marked a milestone in the coffee giant’s presence in India. Spanning an impressive 5,200 square feet, this store greeted customers with the intoxicating aroma of coffee. 

The entrance featured a stunning monolithic terrazzo Reserve bar, a masterpiece crafted by local artisans. Trained black apron coffee masters curated an exceptional coffee experience, showcasing rare and exquisite brews through various brewing methods. 

This Reserve Store was not just a coffee shop; it was a canvas for creating unique moments of connection through the artistry of coffee.

(F.2) Expanding Horizons: Tata Starbucks’ Nationwide Presence

Tata Starbucks established a substantial footprint, operating 350+ stores spread across 36 cities in India. In a significant achievement in 2022, Starbucks executed its largest single-year expansion in India, reaching 14 new cities. The brand’s influence spanned major cities such as Mumbai, Delhi NCR, Hyderabad, Chennai, Bengaluru, Pune, and more.

(F.3) Coffee Blends Celebrating Indian Flavors and Heritage

Starbucks paid homage to India’s rich coffee heritage by introducing special blends. The India Estates Blend, sourced from estates in Coorg and Chikmagalur, the birthplace of coffee in India, made its debut in 2013. Additionally, the Diwali Blend, introduced in 2020, served as a tribute to India’s vibrant culture and longstanding coffee traditions.

(F.4) The Tata Alliance: A Successful Partnership

Starbucks in India proudly bore the branding “Starbucks Coffee – A Tata Alliance,” underscoring the synergy between Starbucks and Tata Global Beverages.

Starbucks’ journey in India was not merely about coffee; it was about brewing connections, transcending cultural boundaries, and crafting unforgettable coffee experiences that resonated with the diverse tapestry of India.

(G) Business and Marketing Strategies of Starbucks in India

Starbucks, despite entering India’s coffee scene with strong strategies, faced challenges in a market dominated by competitors like Cafe Coffee Day and Barista Lavazza. Unlike the U.S., where coffee is a staple, India is traditionally a tea-drinking country. 

Starbucks aimed to create a space for relaxation, blending its global coffee legacy with local culture.

Let’s look at the business and marketing strategies of Starbucks in India-

In short, Starbucks’ journey in India reflects a careful blend of global strategies and localized approaches, aiming to create a unique and sustainable presence in a market with diverse preferences and cultural nuances. The success indicators appear promising, showcasing Starbucks’ commitment to long-term growth and meaningful community integration.

Note: Do you know Starbucks collaborated with Apple during the horizontal marketing in the US? We have covered it thoroughly here- Horizontal Marketing System . You can check it out for detailed information.

(H) Wrapping Up the Case Study of Starbucks

The Case Study of Starbucks unveils a fascinating journey that transformed Starbucks into the reigning coffee king. What started as a local coffee bean store in Seattle’s Pike Place Market in 1971 boomed into a global coffee empire. The strategic moves, like Howard Schultz’s visionary shift to espresso-based drinks, had set the stage for Starbucks’ aggressive expansion.

Throughout its evolution, Starbucks faced challenges, leadership changes, and controversies, but resilience and strategic pivots marked its trajectory. The decision to focus on corporate social responsibility under Schultz’s leadership during the financial crisis showcased Starbucks’ adaptability.

The engagement with local cultures, from the iconic two-tailed mermaid symbol to store designs reflecting regional aesthetics, contributed to Starbucks’ success. Key partnerships, like the one with TATA in India, demonstrated a keen understanding of local markets.

Starbucks’ commitment to quality, community, and sustainability resonated with consumers globally. From unique store experiences to tailored product launches, Starbucks consistently adapted its offerings to cater to diverse tastes.

In essence, the Case Study of Starbucks illuminates a narrative of coffee, community, and corporate strategy, culminating in Starbucks’ reign as the coffee king. 

The journey is a testament to the power of adaptability, brand loyalty, and a steaming cup of coffee that transcends borders, making Starbucks an integral part of daily rituals worldwide!

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• Culinary Arts

The evolution of coffee culture: From bean to cup to lifestyle

October 19, 2023 •

12 min reading

Delving into the depth of what "good" coffee means

Every morning, as dawn breaks, millions stir from slumber, their day initiated by the ritualistic brewing of coffee. This beverage, with its enveloping aroma and invigorating taste, plays a pivotal role in our global society. From clandestine rendezvous in romantic locales to fueling high-powered business meetings, coffee occupies a sacred space in our routines. But amidst this universal appeal lies an intriguing question: what defines a "good" coffee?

As we delve into the depth of what 'good' coffee means, it's also essential to consider the health aspects. Understanding the caffeine content of coffee is crucial, as it can vary widely depending on factors like the type of bean, roast, and brewing method .

Historical footsteps

Intricately woven into the annals of history is coffee's enchanting tale. The legend of Kaldi and his spirited goats offers just a vignette of coffee's journey. After this serendipitous discovery in the Ethiopian wilderness, coffee seeds embarked on a journey of their own. Cultivated under Arabian suns, they became the potion of the elite in Yemen, eventually finding themselves being savored in Venetian palazzos and later energizing the industrious vibes of American urban landscapes. Through each epoch, coffee reinvented itself, transforming from a mystical Sufi potion in the Middle East to a symbol of European sophistication and then into an emblem of American enterprise and innovation.

The subjectivity of taste

Imagine savoring a cup of ‘egg coffee’ in Vietnam, where creamy egg yolks blend with coffee, offering a dessert-like treat. Contrast this with the minimalist approach in Nordic countries, where coffee, often light-roasted and unadulterated, is savored for its nuanced flavors. Travel to Turkey, and your coffee might come with a touch of mysticism, as it's often associated with fortune-telling traditions.

In Ethiopia, the birthplace of coffee, the coffee ceremony is an elaborate ritual, reflecting the nation's deep-rooted respect for this beverage. This spectrum of preferences doesn't just highlight the diversity in flavors and brewing methods but also underscores a deeper narrative. The taste, preparation, and consumption of coffee is a window into a region's history, its socio-cultural nuances, and its interaction with the wider world. "Good" coffee, thus, is not just about the perfect roast or the ideal brewing temperature; it's about stories, memories, and the intricate dance of cultures.

In this exploration of coffee, we don't just seek to understand a beverage; we endeavor to delve into a rich reservoir of global traditions, experiences, and emotions. As we explore the story of coffee, we're not merely tracing the journey of a bean; we're navigating the pathways of human civilization.

A global affair: coffee’s journey around the world

In the quiet rustle of the coffee plantations, in the aromatic waft from steaming mugs in diverse lands, and in the universal clinking of coffee cups, lies an epic saga. This isn’t just about a beverage; it's the chronicle of human endeavors, innovations, and the ceaseless intertwining of cultures and destinies.

Major coffee hubs and their rich histories

The world map of coffee is dotted with tales of adventure, intrigue, and passion. When the Dutch introduced coffee to Java in Indonesia, they did more than plant a crop. They planted an identity, one that would define the region's ecology, economy, and global repute. But Indonesia is just one thread in this global tapestry. Think of Brazil, today's coffee giant, a legacy of its Portuguese colonizers who recognized the potential of its sprawling landscapes. Or Yemen, where the port city of Mocha, synonymous with a certain coffee type, was once the epicenter of the coffee trade, linking the East and West.

And then there's the romanticized tale of Baba Budan, an Indian pilgrim who, legend has it, smuggled seven coffee seeds from Mecca, laying the foundation for India's coffee plantations. These tales are not just of plantations and produce but of geopolitical maneuverings, cultural exchanges, and often serendipitous events.

Coffee cultures in their full splendor

Each nation, each community, embraces coffee and makes it their own. The Turks, for instance, grind it to a fine powder, brewing it unfiltered, resulting in a rich, robust drink where the grounds settle at the bottom, ready to tell your fortune. This tradition, mystical in its allure, is as much about bonding as it is about the brew.

Venture to the Middle East, and you'll find coffee infused with cardamom, a fragrant nod to ancient trade routes and the region's storied history with spices. Italy gave us espresso, a quick yet potent shot, reflecting perhaps the fast-paced vibrancy of Italian city life. And then there’s the Ethiopian coffee ceremony, a spiritual, communal experience symbolizing respect and friendship.

This isn't merely a beverage being sipped; it's history, anthropology, and art in a cup. As we traverse continents and cultures, it becomes evident that coffee isn't just loved universally – it's revered, adapted, and celebrated in myriad, beautiful ways.

When do we crave coffee? Exploring the times and reasons.

If the journey of coffee beans is an odyssey across terrains and cultures, the timing of its consumption is a dance with changing eras, purposes, and social constructs.

Coffee’s chronological evolution

The dawn of coffee's consumption saw it embraced by Ethiopian monks as a secret elixir, enabling them to converse with the divine in prolonged nocturnal vigils. But as the beans traveled beyond the monastic walls of Africa and into the vivacious landscapes of the Middle East, it began to find its place in more secular settings, with people enjoying it in gatherings after sunset prayers.

The coffee story took a significant turn in 17th-century Europe. In cities like London, Venice, and Paris, the emerging coffeehouses, known as 'penny universities,' became more than places to savor a cup. They were stages for the period’s zeitgeist. Intellectuals, traders, and politicians found in these establishments a fertile ground for discourse, debate, and the exchange of ideas. Sir Isaac Newton and the members of the Royal Society often mulled over scientific theories with coffee cups in hand, while writers like Jonathan Swift and Alexander Pope traded wit and satire over their brews.

In the Americas, the coffee narrative wove itself into the tapestry of the industrial revolution. As factories roared to life and cities never slept, coffee became the fuel for the workforce, a tool to battle the fatigue of long hours. The modern espresso shot, quick and potent, was in many ways a response to the fast-paced momentum of the 20th century.

Modern-day resonance

Today, coffee's temporal journey continues to evolve. Morning brews prepare individuals for the challenges of the day, while afternoon cups offer respite in busy schedules. Evening coffees, often decaffeinated, are less about the kick and more about relaxation and social bonding.

Urban landscapes dotted with coffee chains like Starbucks and artisanal coffee shops speak to this drink's versatility. Students swarm in during late hours, using the cafe ambiance for study sessions. Freelancers see them as makeshift offices, while friends view them as reunion spots. In many ways, these modern cafes echo the intellectual and social hubs of the 17th-century, but with a touch of technology and the contemporary zeitgeist.

Coffee, in essence, isn't just dictated by the clock or calendar. It is interwoven with our emotions, needs, and the ebb and flow of societal tides. Whether we're reaching for a mug to invigorate our mornings or sipping on a cup as the sun sets, it's clear: coffee's temporal tale is as rich and varied as its flavors.

Beyond the mug: coffee’s myriad avatars

From the humble mug on our breakfast table to gourmet dishes and the luxurious realms of wellness, coffee has transcended its role as just a beverage. It seeps into our kitchens as an aromatic ingredient, and ventures into our beauty regimens, echoing its versatility and global appeal.

Culinary adventures with coffee

In Italy, the scent of coffee wafts not just from espresso machines, but also from dessert trays showcasing the layered decadence of tiramisu. The allure of coffee-soaked ladyfingers, cushioned between creamy mascarpone, showcases coffee’s dual ability to be both the star and the enhancer in culinary creations.

But the culinary romance doesn’t stop in Europe. Travel to Mexico, and amidst the symphony of chilies, chocolate, and spices in a traditional mole, you might discern the subtle depth added by coffee. This addition, though modest, showcases how coffee can be a canvas, accentuating and deepening the profiles of other ingredients.

In Australia, backyard barbecues, an integral part of the nation's culture, have seen an intriguing twist. The dry rubs, a blend of spices and herbs used to marinate meats, often incorporate finely ground coffee. The result? A smoky, charred flavor profile with just a hint of coffee’s roasty charm.

Coffee’s foray into wellness and beauty

However, the transformative journey of coffee isn't limited to our plates. Enter any upscale beauty store, and you’re bound to encounter products touting coffee as their key ingredient. And this isn't mere marketing.

Caffeine, a primary compound in coffee, has properties that enhance blood circulation. This has led to its incorporation into a plethora of skincare products, especially those targeting puffiness and dark circles. Coffee-infused facial scrubs exfoliate, rejuvenate, and impart a fresh glow, making our skin mirror the energized feel we get post our morning brew. Beyond the face, coffee-based body scrubs promise cellulite reduction and smoother skin.

The beauty industry's embrace of coffee isn't just a testament to the bean’s versatility; it's an acknowledgment of its myriad benefits. From the kitchens of Michelin-starred restaurants to the labs of beauty moguls, coffee continues its enchanting journey, proving that its potential is limitless and its charm, universal.

Coffee's economic footprint and its business evolution

As coffee beans have journeyed across continents, they've not just altered cultures and morning routines; they’ve driven economies, spurred innovations, and birthed entire industries. From plantation economies in the past to the bustling café culture and specialized coffee vocations of today, coffee's business narrative is as rich and evolving as its flavor profiles.

The renaissance of coffee shop culture

The modern café isn't just a place to get your caffeine fix. It's an experience, an escape, and often, a reflection of societal values and nuances. In the fast-paced streets of Seoul, coffee shops often provide sanctuaries of serenity. Stacked with books, these spaces become urban oases where patrons can lose themselves in literature while sipping on a meticulously crafted latte.

In contrast, in the lush landscapes of Guatemala, coffee shops provide more than just a serene ambiance. They offer a tangible connection to the land and its produce. These cafes, often situated close to plantations, give enthusiasts a chance to embark on insightful tours, witnessing firsthand the intricate process from bean cultivation to roasting, and eventually, to the cup they hold in their hands. This not only enhances appreciation but also roots the experience in authenticity and education.

At 12 Onzas, Antigua, the coffee is direct from their farm, and they sell it on the shelves next to the counter.

From baristas to coffee sommeliers

The Third Wave Coffee movement, which emphasizes transparency, sustainability, and a deep respect for the artisanal aspect of coffee production, has redefined the role of a barista. Gone are the days when they were just the individuals behind the counter. Today, they are coffee sommeliers, equipped with an in-depth knowledge of bean origins, processing methods, and brewing techniques.

Their expertise is not just about crafting the perfect cup, but also about educating the consumer. They can discern the notes of berries from an Ethiopian brew or the hints of chocolate in a Colombian roast. Their dialogues often revolve around the elevation of bean cultivation, the impact of rain shadows, or the nuances of wet vs. dry processing.

This evolution underlines a broader shift in the coffee industry. The modern coffee aficionado doesn't just seek a beverage; they seek a story, a connection, and an experience. Cafes have transformed into spaces of knowledge exchange, where the discourse isn't just about taste but also terroir, trade ethics, and techniques.

In the end, coffee’s economic footprint extends beyond mere trade figures. Its ripple effects are evident in the global café renaissance, in the elevated status of coffee professionals, and in the nuanced, informed conversations around this beloved beverage. As businesses adapt and evolve, one thing remains clear: the world doesn't just love coffee; it respects, values, and celebrates it in ever-evolving, multifaceted ways.

The green bean: environmental and ethical concerns

Coffee, an everyday luxury for many, has a complex trail that weaves through plantations, communities, ecosystems, and economies. As the world becomes more aware of sustainability and ethical considerations, the coffee industry is under the microscope, scrutinized for its environmental impact and sourcing practices.

Sustainable endeavors in coffee cultivation

Coffee plantations, spanning vast areas, have a profound impact on their surroundings. Traditionally, vast tracts of forests were cleared for coffee cultivation. However, as environmental repercussions become evident, a shift towards sustainable farming is gaining momentum.

In the verdant landscapes of Costa Rica, carbon-neutral farms are emerging as trailblazers. They adopt practices like agroforestry, where coffee is grown under the shade of native trees, reducing the carbon footprint and fostering biodiversity. These farms also engage in reforestation efforts, ensuring a balance between cultivation and conservation.

Further south, in the coffee-rich terrains of Colombia, there's a focus on preserving bird habitats. Bird-friendly certifications ensure plantations maintain specific canopy cover, helping in the conservation of migratory birds and local fauna. Such efforts also benefit the coffee quality, as shade-grown beans often possess deeper and more complex flavor profiles.

Ensuring fairness: the ethical sourcing movement

Beyond the environment, the human element in coffee's journey is crucial. For years, farmers, the backbone of the industry, often received a minuscule fraction of coffee's retail price. This imbalance, coupled with volatile market prices, made their livelihoods uncertain.

However, a wind of change is sweeping the industry. Ethical sourcing is no longer an add-on or a marketing gimmick; it's becoming central to how businesses operate. Certifications like the Rainforest Alliance go beyond ensuring environmental sustainability; they ensure decent wages, good working conditions, and community welfare.

The Direct Trade movement pushes this even further, seeking to eliminate middlemen. By fostering direct relationships between roasters and farmers, it ensures a larger share of profits for those tending to the crops. This not only guarantees better economic prospects for farmers but often results in collaborations to improve coffee quality, benefiting the consumer.

In essence, the modern coffee narrative is no longer just about taste or aroma. It's intertwined with the health of our planet, the welfare of communities, and the ethics of commerce. As consumers become more discerning and industries more accountable, coffee stands as a testament to how global goods can evolve to reflect contemporary values and priorities.

Coffee, a mirror to our global civilization

From the mist-kissed highlands of Ethiopia to the bustling urban cafés of New York, coffee has woven a tapestry as varied, vibrant, and profound as human civilization itself. Each bean, seemingly simple, carries in it tales of nations, dreams of farmers, innovations of businesses, and preferences of countless individuals.

The economic footprints of coffee trace pathways through history, showcasing colonization, trade wars, and globalization's ebb and flow. Simultaneously, each region's unique coffee culture offers glimpses into societal structures, values, and daily rhythms. The Turkish tradition of fortune-telling using coffee grounds or the Italian ritual of a swift espresso at the bar counter before work are not just habits; they are reflections of deeper societal paradigms.

However, as illuminating as its past might be, coffee's current narrative holds a mirror to contemporary global concerns and aspirations. The growing emphasis on sustainability within the coffee industry is a testament to our broader realization of the environmental fragilities we face. Ethical sourcing, ensuring farmers are compensated fairly, underlines a move towards a world prioritizing equity over mere profit.

In essence, as we cradle our mugs and let the aroma of freshly brewed coffee envelop us, we're not just partaking in a ritual; we're connecting with a legacy that spans centuries and continents. Coffee, in its multifaceted journey, encapsulates the struggles, triumphs, dreams, and aspirations of humanity. As we move forward, facing challenges and embracing opportunities, coffee remains our constant companion, reminding us of our shared past and urging us toward a more inclusive, sustainable, and harmonious future.

Lecturer of Practical Arts teaching Mixology, Coffee Training, and Kegged cocktails at EHL

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4 Starbucks—The ‘Coffee House’ Experts: A Case Study in Cultural and Strategic Alignment

• Published: June 2022
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Because of rapid globalization over recent years, the competition around the world becomes, more intense, especially for the service industry with similar products. The most critical point for business to succeed is not only the quality of products they supply, but the atmosphere of cooperating and the amount that teamwork yields in retail sales. The employees who always touch with customers and can realize what customers really need are first-line staff. Therefore, it is essential for companies to motivate, reward, and train their employees to be the best quality personnel. Starbucks Corporation, the most famous chain of retail coffee shops in the world, mainly benefits from roasting, selling special coffee beans and various kinds of coffee or tea drinks. It owns about 4000 branches in the whole world. Moreover, it has been one of the most rapid growing corporations in America as well. The reasons why Starbucks is popular worldwide are not only the quality of coffee, but also its customer service and cosy environment. Starbucks establishes comfortable surroundings for people to socialize with a fair price, which attracts all age ranges of consumers to get into the stores. Besides, it is also noted for its satisfaction of employees. The turnover rate of employees at Starbucks was 65% and the turnover rate of managers was 25% a year. However, the rates of other national chain retailers are 150% to 400% and 50% respectively. Compared with them, the turnover rate of Starbucks is much lower than other industries on an average. As a result, Starbucks would be one of the optimal business models for understanding the strategies of employee motivation, customer satisfaction, and cooperation of teamwork.

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Please note you do not have access to teaching notes, origin artisan coffee: growth challenges faced by a niche brand in south africa.

Publication date: 16 August 2021

Teaching notes

Learning outcomes.

Identify the advantages and disadvantages of being first-to-market with a new product in a new environment. Explain the differences between business-to-business (B2B) and B2C markets, how they are interconnected in the speciality consumer good category and the challenges of developing a balanced strategy for both. Assess the competitive positions of different market players within both B2B and B2C. Analyse the role of brand in a niche market and how brand perception influences consumer behaviour. Identify and assess the different strategies for growth in an evolving niche market.

Case overview/synopsis

Origin Coffee is an artisan coffee roaster in South Africa grappling with rising competition, evolving consumer tastes and brand management concerns. As an early entrant, Origin largely created the niche market for speciality coffee across the country as both a retail coffee shop and a wholesale supplier to independent shops and businesses. This case follows founder Joel Singer 15 years later, in August 2020, as he contemplates how to scale the business, which has cultivated a brand synonymous with quality and excellence. Repeated efforts to expand the Origin footprint have met with disappointment and the business is still operating exclusively from its original roastery-café in Cape Town. Yet, the customer perception is that Origin is an industry giant – an established player that has outgrown its plucky upstart status. Origin also faces an increasingly crowded competitive landscape of local artisan roasters and larger chains. The case showcases the power of entrepreneurial innovation to cultivate a new niche market, as well as the risks of playing in a market that is very narrow and immature. Students are left to determine what Origin’s place in the future of South African coffee can and should be.

Complexity academic level

This case is appropriate for students enrolled in postgraduate programmes such as Master of Business Administration and Executive Education programmes. Although the case learnings are transferrable, this case will be particularly useful to students with interests in entrepreneurship, B2B and B2C market strategies and niche market strategy.

Supplementary materials

Teaching Notes are available for educators only.

Subject code

CSS 11: Strategy.

• Niche marketing
• Entrepreneurship
• Marketing strategy/methods

Acknowledgements

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognisable information to protect confidentiality.

Pavlovic, P. , Reyneke, M. and Boyd, S. (2021), "Origin artisan coffee: growth challenges faced by a niche brand in South Africa", , Vol. 11 No. 3. https://doi.org/10.1108/EEMCS-04-2021-0110

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Sustainable coffee: A review of the diverse initiatives and governance dimensions of global coffee supply chains

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• Published: 29 April 2024

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• Dale R. Wright   ORCID: orcid.org/0000-0003-3946-3582 1 ,
• Sarah A. Bekessy 1 ,
• Pia E. Lentini 1 , 2 , 3 ,
• Georgia E. Garrard 3 ,
• Ascelin Gordon 1 ,
• Amanda D. Rodewald 4 , 5 ,
• Ruth E. Bennett 6 &
• Matthew J. Selinske 1  

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With a global footprint of 10 million hectares across 12.5 million farms, coffee is among the world’s most traded commodities. The coffee industry has launched a variety of initiatives designed to reduce coffee’s contribution to climate change and biodiversity loss and enhance the socio-economic conditions of coffee producers. We systematically reviewed the literature on the sustainability and governance of coffee production and developed a typology of eleven sustainability initiatives. Our review shows that coffee sustainability research has focused primarily on the economic outcomes of certification schemes. The typology expands our knowledge of novel sustainability initiatives being led by coffee farming communities themselves, allowing for an improved consideration of power dynamics in sustainability governance. Sustainability initiatives governed by local actors can improve sustainability outcomes by empowering local decision makers to assess direct risks and benefits of sustainable practices to the local environment, economy, and culture.

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Introduction

Human activities continue to drive unprecedented changes in ecosystems and their ability to deliver the goods and services upon which humans depend, with recent research indicating that we have transgressed six of the nine planetary boundaries (Rockström et al. 2009 ; Richardson et al. 2023 ). The food system has potentially surpassed the safe planetary boundaries for two major axes of impact—biodiversity loss and phosphorus pollution—and poses significant planetary risks through its greenhouse gas emissions and overuse of fresh water and cropland (Rockström et al. 2020 ). It is therefore critical to address the impacts of agriculture and develop approaches that can shift food production systems towards a more sustainable trajectory.

Coffee is one of the top ten global commodities, farmed across 10 million hectares on about 12.5 million coffee farms (ICO 2014 ). However, the coffee sector has been challenged by a series of issues that threaten its social and environmental sustainability (Bacon et al. 2008 ). Historically, a series of global contracts, known as the International Coffee Agreements , were adopted to ensure the price stability of coffee and manage supply (ICO 2014 ). However, in 1989, the dismantling of the agreements alongside rapid growth in coffee supply from Brazil and other coffee-producing countries precipitated a price crash of almost 75%, which continued towards an all-time low of $0.50 per pound in 2001 (ICO 2014 ; Rueda et al. 2017 ). Increasing incidence of coffee leaf rust and other diseases have also plagued the sector in recent times (ICO 2014 ), while climate change is reducing the area suitable for cultivation (Lara-Estrada et al. 2021 ). Increasing recognition of the challenges facing the coffee sector has resulted in the development of a number of sustainability initiatives intended to address impacts of climate change, improve natural resource management and enhance the socio-economic conditions of coffee producers (Panhuysen and Pierrot 2020 ).

A theory of change is an explicit representation of the steps required to achieve a particular goal, usually starting from a long-term outcome, and subsequently identifying the actions and enabling conditions required to achieve that goal (Taplin and Clark 2012 ). The theory of change underpinning most sustainability initiatives or supply chain interventions is rooted in adjusting the behaviour of relevant actors or groups of actors within a supply chain (Newton et al. 2013 ). In recent decades, several supply chain policies, also known as voluntary sustainability standards or certifications, have been developed to trace and reduce the impacts of crops on biodiversity (Garrett et al. 2021 ). Coffee has been a focal commodity both for the development of certifications and for research regarding the outcomes of such certifications (DeFries et al. 2017 ; Tayleur et al. 2018 ; Traldi 2021 ). Alongside standards or certifications other sustainability initiatives being implemented include private corporate social responsibility programmes and government technical support programmes. These sustainability initiatives operate at various spatial and temporal scales and aim to address different challenges in the coffee production system, for example, targeting fair compensation for farmers, or ensuring environmentally sustainable practices. Sustainability approaches vary across a number of axes and may be defined either by the types of actor that are engaged, or how strict the requirements are for receiving the certification (Rueda et al. 2017 ). Alternatively approaches might be characterized by the level of involvement of the private actor, with some choosing “hands-on” policies and actions in direct relationships with coffee producers and the supply chain, whilst others act through pre-existing certifications in a more “hands-off” manner (Bager and Lambin 2020 ).

Alongside social and economic outcomes, voluntary sustainability standards and other sustainable or regenerative agriculture approaches are assumed to provide a number of environmental benefits including: improving soil health, reducing conversion of natural ecosystems, reducing pollution and off-farm ecological impacts, and improving the conservation value of the production landscape itself (Milder et al. 2014 , Newton et al. 2020). Essentially, standards attempt to address a triple bottom line for sustainability, by encouraging positive environmental, social and economic outcomes (Garrett et al. 2021 ; Traldi 2021 ). Synthesis of the research regarding certifications has produced mixed findings; some case studies found positive outcomes for livelihoods and conservation (Garrett et al. 2021 ), whereas in other reviews the evidence of benefits was inconclusive (DeFries et al. 2017 ). A review focused on the economic effects of sustainability standards found that certifications boosted both the price paid for beans and household income (Meemken 2020 ).

Beyond certifications there is a wide range of initiatives being implemented collaboratively by multiple actors across the coffee supply chain (Millard 2017 ; Samper and Quiñones-Ruiz 2017 ; Bager and Lambin 2020 ). While diverse governance structures exist within coffee sustainability initiatives, most research has focused on certifications, with less consideration of other types of initiatives, their strengths or limitations, and their potential to create change (Samper and Quiñones-Ruiz 2017 ). Thus, the intention of this review is to document and characterize the diversity of sustainability initiatives and governance structures being applied throughout the coffee supply chain. Here, we define a sustainability initiative as: any stakeholder initiative introduced into, or developed within, a socio-ecological system, and intended to generate positive social, economic, and environmental outcomes within that system (Smith 2007 ; Newton et al. 2013 ). We focus on initiatives that apply to the production side of the supply chain, thus contributing to sustainability of the coffee growing landscape and its environment, and the socio-economic sustainability of coffee producers.

The diversity of sustainability initiatives in the coffee sector may create confusion for producers, retailers and consumers seeking to build and demonstrate market support for sustainable practices. To assist in navigating this complexity, we produce a typology of the various sustainability initiatives in operation to assist stakeholders in selecting an approach that fits their context and purpose. This typology informs a comparative analysis of the initiatives, focused on the defining characteristics of each, the actors, and scales at which they operate. The typology expands on previous work investigating coffee sustainability through the identification of diverse initiatives being led by coffee farmers themselves. This allows for an improved consideration of issues such as power dynamics in sustainability governance and reveals the bias in research and practice towards sustainability initiatives led by other supply chain actors, particularly those from upper-income and coffee-consuming countries. We also assess the outcomes being investigated, and the evidence base regarding the social and environmental outcomes produced by these initiatives. Research gaps are identified and contribute to a research agenda to support sustainability in the coffee supply chain.

In this review, we followed the RepOrting standards for Systematic Evidence Syntheses (ROSES) protocols, which were developed specifically for the conservation and environment sectors (Haddaway et al. 2018 ). These protocols identify the kinds of information that should be presented in a standard systematic review or systematic map. The major steps and information suggested in this protocol align closely with the stages of our review as described below and indicated in Fig.  1 . We identified an initial set of 35 synonyms related to the research based on a pilot search of the relevant literature and our existing knowledge (SI 1 ). A naïve search string was constructed using a subset of these synonyms and used to generate an initial database of references from Web of Science. The litsearchr package in the R statistical analysis programme (2021) (Grames et al. 2019 ) was then used to scan the contents of this literature database for potential additional keywords, to further revise the search string (SI 1 ). The search string was iteratively tested, by adding and removing words and checking how this affected the total number of references identified, resulting in the final search string used for the review (Table  1 ).

Systematic review protocol

We applied a topic search using this search string to a range of databases (Web of Science [topic search], Scopus [Title, abstract, keyword search], and ProQuest [Abstract search, limited to peer-reviewed literature]) for English language studies with no specified date range. The three databases were searched in February 2022, and the resulting 2134 citations were combined in R using the revtools package (SI 2 ) (Westgate 2019 ). These citations were imported into the online Covidence platform, which was used to identify and extract duplicates using a title, year, volume, and author matching algorithm (Covidence 2022 ). A subset of 60 identified duplicates were manually examined to ensure they were duplicates. This process resulted in a final dataset of 1226 publications; we reviewed the title and abstract of each, excluding publications that failed to explicitly mention coffee and those that focused on pure ecological, agricultural, or food sciences. We also excluded publications that focused solely on coffee quality, plant breeding and genetics, marketing, branding, or consumer psychology (see SI 3 for exclusion criteria). Consistency was checked by examining a random subset of 5% of the excluded papers. Application of the exclusion criteria resulted in the retention of 429 manuscripts for further review (Fig.  1 ), which were imported into Microsoft Excel (2018) for further screening and analysis.

At this stage, eligibility screening was carried out by reviewing the title and abstract of each manuscript again and checking additional manuscript text if further clarification was required. Because we were interested in the sustainability of coffee production, as opposed to consumption, only studies of initiatives in coffee-producing countries and regions were retained. Studies that considered other stages along the supply chain were also excluded, as were book chapters and other systematic reviews, to prevent double counting of outcomes. Although our study explicitly highlights initiatives focused on the production end of the supply chain, our analysis still considers the links between the different stages of the supply chain and how actors at various stages influence sustainability outcomes throughout the supply chain. During the eligibility screening the lead author documented any type of sustainability initiative encountered in any study, and the term used to describe it. He continued to add new terms and types of initiatives throughout this process of inductive coding, resulting in the preliminary table of sustainability initiatives (SI 6 ). This extensive list was characterized by similarity, and the different types were grouped to develop the initial list of 11 candidate sustainability initiatives. Additional exclusion principles were applied at this stage (SI 4 ), resulting in a final dataset of 217 manuscripts (SI 5 ) being retained for the first analysis (Fig.  1 ).

For each of the 217 manuscripts, information related to the type of sustainability initiative was documented, based on the candidate 11 types we had identified. We did not identify any additional, novel types of initiatives beyond those already identified in the eligibility screening, which resulted in these 11 candidate initiatives being retained as our final typology (Table  2 ). For each study, we also recorded whether the outcomes of a sustainability initiative were described, and the kinds of outcomes (social, environmental, economic) reported. The focal country of the study was documented, including multiple countries in some instances. The information extracted in this way comprised the first stage of analysis in our study (Fig.  1 ; Inclusion).

The next step in the analysis consisted of reviewing full manuscripts for outcomes and extracting additional information to inform our typology. Because other recent reviews assessed primarily economic outcomes (DeFries et al. 2017 ; Meemken 2020 ), we focused only on those studies that examined both social and environmental outcomes ( n  = 39; Fig.  1 ), as identified during the previous step. Whilst we do not explicitly code and quantify the economic outcomes from these initiatives as part of our results, our analysis does nonetheless consider economic factors in relation to the overall sustainability of coffee production. For each manuscript, information pertaining to predefined themes was coded using Nvivo 12 Plus (2018). Our review drew on classifications of policy instruments from the literature, to identify ways that we could characterize the sustainability initiatives (Schneider and Sidney 2009 ; Rueda et al. 2017 ; Coffey et al. 2022 ). We extracted text which related to the actors, goals, scale, defining characteristics, and a theory of change for each initiative, themes which provided the information required for our typology.

Our typology drew an important distinction between target groups as the “peoples, groups and organizations” whose behaviour is intended to change and agents as the actors “who are assigned authority (or take the lead on) developing and implementing an initiative” (Coffey et al 2022 ). A similar approach was applied by Rueda et al ( 2017 ) who organized sustainability instruments in the agri-food sector according to their scope or “the supply actor bound by the instrument”. This corresponds to target groups in our framing. In addition to the information required for the typology, we also extracted any text describing power dynamics among actors, by examining text including aspects of equity, agency, and inclusive participation of actors within initiatives in the coffee supply chain. The statements relating to power dynamics were subsequently analysed and grouped based on their similarities. Actors were grouped as “downstream” or “upstream” relative to each other within supply chains, with producers and cooperatives occurring downstream of NGOs, government-level initiatives, and sourcing or trading companies. We extracted any text that described the relationship among actors at different levels and used it to classify each relationship as “creating a power imbalance”, “maintaining equity”, or “addressing a power imbalance” based on which actor drove the sustainability initiative. Actions where upstream actors conceptualized, required, and/or directed the implementation of a sustainability initiative were considered to be “creating a power imbalance”. Relationships where both actors achieved consensus or contributed equally to decision making were considered “maintaining equity”. Relationships where the downstream actors were empowered and supported to set sustainability priorities and develop implementation methodologies were considered “addressing a power imbalance”.

We drew on the Sustainability Assessment of Food and Agriculture (SAFA) framework to guide our outcomes analysis, focused on the sustainability dimensions of environmental integrity and social wellbeing (FAO 2014 ). Good governance and economic resilience are additional sustainability dimensions but were not considered for this research. Environmental Integrity is characterized by six themes, namely Atmosphere, Biodiversity, Water, Land, Materials and Energy and Animal Welfare, and a variety of sub-themes for each. We coded statements related to the sub-themes for all dimensions except Animal welfare and Materials and Energy. Social wellbeing includes six themes: Decent livelihoods, Fair-trading practices, Labour rights, Equity, Human safety and health, and Cultural diversity. Any outcomes related to the sub-themes were categorized accordingly. Outcomes were identified by reviewing the results or findings sections of the relevant papers. Because studies varied widely in how outcomes were measured, we could not compare the effectiveness of initiatives using quantitative measures. Instead, we used a vote counting approach, recording the individual outcomes in a study as positive, negative, or inconclusive based on the direction relative to any baseline in the study. In studies that included multiple individual outcomes, each outcome was included separately. Quantitative or qualitative outcomes from the implementation of an initiative and perceived or modelled benefits were coded in this way. For the purposes of this review, different outcomes in each study correspond to different cases.

A final step of the analysis involved grouping the sustainability initiatives in our typology based on the primary agents of each initiative and how far removed they were from the focal coffee growing landscape and coffee producers. By analysing our findings according to these scales of governance, we sought to determine whether the distance between the agents and the target group or landscape influenced the delivery of outcomes. There are limitations to applying a vote counting approach (Haddaway et al. 2020 ); however, our intention is not to indicate which are the most effective types of initiatives, but rather to illustrate the state of the evidence base and identify potential gaps in the monitoring of outcomes.

Following an extensive screening of the literature, our review documented a diversity of sustainability initiatives in the coffee sector, with almost 40 different terms being used (SI 6 ). Our typology discerned 11 types of sustainability initiatives in use across various stakeholders in the coffee sector (Table  2 ). This comparative typology then informed our subsequent analysis of the governance and outcomes of the sustainability initiatives. Based on our classification of the studies that documented outcomes of initiatives during our first analysis (Fig.  1 —Inclusion, n  = 217), it was clear that certifications or voluntary sustainability standards were the most well-studied group, comprising nearly half of our dataset ( n  = 98, Fig.  2 ). Those studies that did not measure outcomes were mostly concerned with politics and governance aspects of sustainability initiatives.

The number of studies for each type of sustainability initiative in the coffee supply chain, indicating they did (black) or did not (grey) document social, environmental, or economic outcomes

Sustainability research in the coffee supply chain covers the major coffee production countries and regions, with a bias towards research in the Americas, and particularly Mexico ( n  = 30, 14%) (Fig.  3 ). This bias is disproportionately high when considered relative to coffee production in Mexico (approximately 2% of global supply, SI 7 ). Notably, there were no studies within our dataset on coffee sustainability initiatives in West African coffee-growing countries, including Côte d’Ivoire, Cameroon, and Gabon. Some studies investigated dynamics at a global scale ( n  = 31) and are not represented in Fig.  3 . Of the 217 studies we reviewed, 65% (140) documented at least one social, environmental, or economic outcome. Economic outcomes were most frequently evaluated ( n  = 110, 79%), particularly for certification programmes (Fig.  4 ), followed by social ( n  = 80, 57%) and environmental ( n  = 65, 46%) outcomes. Many of the sustainability initiatives had fewer than ten studies examining any outcomes, with Payments for Ecosystem Services comprising the fewest studies (Fig.  4 ).

Global distribution of studies investigating sustainability initiatives in the coffee supply chain included in our dataset ( n  = 217)

The number of studies investigating environmental, social and / or economic outcomes of coffee sustainability initiatives ( n  = 140), ranked from those with the highest number of outcomes to the least. A single study might examine all three types of outcomes

The statements we extracted relating to power dynamics mostly described relationships where actors higher in the supply chain exert power ( n  = 7), due to information and resource asymmetry and the nature of a buyer-driven value chain (Fig.  5 ). These dynamics act to maintain existing power asymmetry in the coffee supply chain. Fewer studies examined processes that improved equality between actors ( n  = 3), such as negotiating shared visions, building consensus, and/or ensuring democratic involvement of all actors (Fig.  5 ). A third power dynamic highlighted in three studies related to coffee producers’ attempts to tackle power imbalances, including through more equitable producer–retailer relationships emerging from the relationship coffee model ( n  = 2), and locally adaptive producer responses to certification requirements (Fig.  5 ).

Power flows between different actors operating within the coffee supply chain. The sample sizes indicate the number of studies which included each factor or action

Scales of sustainability governance

When we classified the central agents of each sustainability initiative (i.e. those who identify the actions to be undertaken by the target group) (Table  2 ), three broad groupings emerged (Fig.  6 ). Local initiatives, such as cooperatives and agroecology programmes, were designed and implemented by coffee producers themselves. Intermediate initiatives, such as geographic labels, were generally led by governments. Distant initiatives, such as corporate social responsibility programmes, certifications, or multi-stakeholder platforms, are designed and led by global actors. Whilst intermediate and distant initiatives are designed and led by actors located far from the coffee producing region, they all require action from stakeholders throughout the supply chain (for example, see Target Groups classification in Table  2 ).

Scales of governance for sustainability initiatives in the coffee supply chain, showing the actors leading sustainability initiatives (agents, x-axis) and their scales of operation (y-axis). The total number of studies is indicated in brackets for each grouping

The Relationship Coffee Model (RCM) occupies a unique space in this framing, by attempting to bridge both the physical distance and multiple stages of the supply chain, by focusing on direct-trade relationships between coffee producers and retailers (Hernandez-Aguilera et al. 2018 ; Edelmann et al. 2022 ). In these relationships, retailers and producers form partnerships which lead to the co-design of sustainability initiatives intended to meet the motivations of both parties. These are somewhat different from the other Distant initiatives, primarily designed by actors more removed from the production landscape. Whilst the RCM aims to bridge this distance, it is still enacted primarily at the discretion of coffee roasters or retailers, hence our placement of it as a Distant initiative, based on the lead agent location (Fig.  6 ).

Sustainability initiative outcomes

Of the 39 studies that documented both social and environmental outcomes, we found 63 cases describing environmental outcomes (Table  3 ). In general, there was a lack of evidence for outcomes across most environmental outcome categories. The greatest number of positive outcomes related to the biodiversity and land categories, with a disproportionately high number of positive environmental outcomes (relative to the number of studies) documented for local level initiatives. We found no studies that evaluated the environmental outcomes of global multi-actor initiatives (Table  3 ). The documentation of negative environmental outcomes of certifications suggests that certain sustainability initiatives could have unintended consequences in some contexts or have insufficient power to alter negative environmental trends.

There was even less evidence for social outcomes delivered by the different initiatives, with only 46 cases across our social outcome categories (Table  4 ). Positive social outcomes were evident for local-scale initiatives and often included improving livelihoods through income diversification, establishing fair trade practices, protecting the health and safety of workers, safeguarding labour rights, and capacity building among local leaders. Agroecology programmes often focused on food security and income diversification to buffer against the volatility in coffee markets (Häger et al. 2021 ; Pronti and Coccia 2021 ). Community and Cultural Initiatives emphasized cooperation as a necessary element of a well-organized coffee agritourism initiative (Candelo et al. 2019 ). These initiatives also empowered coffee producers as independent entrepreneurs, who could then develop their own governance systems (Candelo et al. 2019 ; Prihayati and Veriasa 2021 ). Most positive social outcomes were focused on ensuring decent livelihoods for coffee producers rather than improving equity along the supply chain. We also found evidence of negative equity outcomes for those initiatives operating at intermediate and distant scales. For example, a Geographical Indication in Jamaica left coffee farmers with no influence over how the initiative was implemented, further reinforcing supply chain inequities (Francis et al., 2013). We found less evidence of negative outcomes than positive outcomes across both the environmental and social categories (Tables  3 , 4 ). Three positive outcomes for Cultural Diversity were documented but are not included in Table  4 .

Through a literature review, we developed a typology of 11 types of sustainability initiatives operating in the coffee sector (Table  2 ). This typology resulted from a systematic screening of the relevant literature, which, to our knowledge, is the first comprehensive attempt at documenting the broad range of sustainability initiatives undertaken by all actors operating in the coffee supply chain. Other studies that have developed similar typologies have focused primarily on companies and corporate investments in coffee sustainability (Rueda et al. 2017 ; Bager and Lambin 2020 ). By highlighting the role of coffee producers in sustainability initiatives [for example, see the descriptions of Community and Cultural Initiatives, Producer Cooperatives and Agroecology programmes (Table  2 )], this typology improves our understanding of key actors, such as farmers and their collective associations, which play a critical role in the sustainability of the coffee landscapes. Previous research, which has focused on actors in coffee-consuming, rather than coffee-producing, countries, may have inadvertently overlooked these important actors.

Our research illustrates the range of scales and actors involved, and the diversity of approaches being used, to pursue sustainability in the coffee supply chain. Whilst the diversity of initiatives is encouraging, research has focused predominantly on certifications and the Americas. Certifications were by far the most examined sustainability initiative, even though other approaches have also been around for 20 years or more. Unfortunately, we cannot determine the extent to which this pattern reflects a reporting or publication bias or a true predominance of certifications in sustainability initiatives in the coffee supply chain. Certifications naturally lend themselves to academic research as control and treatment groups can be readily evaluated, as can economic outcomes, which were the most assessed outcome category. This is important, because economic disparity is a core concern for coffee sector sustainability, especially for smallholder producers (Sachs et al. 2020 ). However, economic factors represent only one component of wellbeing (Stiglitz et al. 2009 ) which is characterized by additional social factors such as community cohesion, connection, trust, and personal development.

Compared to economic assessments, there have been fewer evaluations of social and environmental outcomes, limiting our ability to understand the effectiveness of sustainability initiatives. Whilst we did document evidence of positive environmental outcomes for most sustainability initiatives (Table  3 ), we were unable to conduct a comparative analysis of their effectiveness due to a lack of evidence and consistency in the literature. Future research should focus on comparing outcomes across the broad suite of sustainability initiatives, using standardized metrics where possible. Such metrics might include, for example, the default indicators suggested in the Sustainability Assessment of Food and Agriculture (SAFA) framework, which provides standardized metrics across multiple dimensions and themes related to agricultural sustainability (FAO 2014 ). Applying the indicators in that framework in the future research would facilitate comparisons of alternate initiatives and the outcomes they deliver.

Novel and emerging sustainability initiatives

Our review identified the following novel and emerging types of initiatives to improve the sustainability of coffee: agroecology transitions led by farmers, community and cultural initiatives, geographic labels, and the relationship coffee model. Agroecology is a practice which applies ecological principles in the design of sustainable agricultural systems which also support the resilience and empowerment of smallholder farmers (Altieri 2002 ; Altieri and Toledo 2011 ). Agroecology programmes have historically been delivered as part of technical support projects for coffee producers from businesses, NGOs or government (Pronti and Coccia 2021 ). However, we documented novel agroecology programmes initiated by producers themselves to address environmental issues such as soil erosion or pollution from agrochemicals (Le et al. 2020 ; Häger et al. 2021 ), as well as to enhance livelihood security through diverse food products or income generated from the shade trees (Castro et al. 2013 ; Le et al. 2021 ; Urgessa Waktola and Fekadu 2021 ). Locally led agroecological initiatives have the potential to address power imbalances and deliver positive social and environmental outcomes, but to date have received less research attention. Future research could investigate the personal or community motivations behind such programmes or examine which structural and regulatory drivers either facilitate or hinder these transitions. Increasing global interest in regenerative agriculture as a key response to the climate and biodiversity crises could also be used to support agroecology transitions in practice (Newton et al. 2020). A key question in relation to these locally led initiatives is how actors at other stages in the supply chain can best respond to and support these farmer-led initiatives, without perpetuating the buyer-driven power dynamics of the coffee supply chain. Perspectives from intersectional environmentalism and political ecology could provide useful framing for such research, ensuring that complex ethical considerations are given proper attention (Robbins 2019).

Community and cultural initiatives differ from agroecology programmes through their explicit focus on community-based agritourism and community-based forest management as pathways to sustainability, and their consideration of the socio-cultural values that underpin coffee cultural landscapes. Community-based coffee tourism is a niche experience, which aims to expose tourists to working farms that use traditional, often agroecological, farming approaches (Candelo et al. 2019 ), and are usually embedded in broader coffee cultural landscapes (Yudhari et al. 2020 ). Coffee cultural landscapes are like Biosphere Reserve models, in which both natural and cultural values are promoted and conserved (UNESCO 2023). These approaches exist in Colombia (Martínez 2016 ), Ethiopia and Indonesia (Yudhari et al. 2020 ) as a method to conserve the biocultural diversity of these regions within a working production landscape. They were under-represented in our dataset and require further investigation, particularly as they exist at the intersection of social justice and environmental conservation, core concerns for transformative change (Visseren-Hamakers et al. 2021 ). Future research could examine the specific kinds of cultural and traditional ecological knowledge which are used to manage these landscapes, paying attention to issues of knowledge appropriation. Understanding how such knowledge is transmitted across individuals and generations, and how this might be affected by increasing rural emigration, is essential to supporting the longevity of these initiatives.

Geographic labels are commonly associated with products such as wine or champagne, where registration and labels protect the provenance of the product (Francis and Hyman 2013 ). They are usually linked to a physical location and its associated soils, climate, elevation or aspect (also described collectively as terroir), all of which in turn influence the product’s flavour profile (Bager and Lambin 2020 ). This is also true for coffee, and geographic labels are often associated with specialty, single origin coffee from specific farms or regions (Francis and Hyman 2013 ; Hoang and Nguyen 2019 ; Morais and César Pinheiro Da Silva 2021 ). Marketing and branding linked to these geographic labels can attract higher prices, potentially improving the economic outlook for smallholder producers in denominated geographies by capturing more value in the supply chain (Rueda et al. 2017 ; Samper and Quiñones-Ruiz 2017 ). Whilst these initiatives represent an opportunity for greater value capture, geographic labels enacted at national levels are prone to corruption and control by political elites, resulting in exclusion and inequitable trading relations for small-scale farmers (Francis and Hyman 2013 ). This leads to the question of whether geographical indications can be used to address power dynamics between exporters and importers of coffee, given their relationships are often already underpinned by the power dynamics between (for example) upper- and lower-income countries. It also calls into question the efficacy of these types of initiative in addressing within-country power imbalances between coffee farmers and other supply chain actors. Unfortunately, we do not know the overall prevalence or effectiveness of geographical indications in the coffee sector, apart from the information presented here.

The relationship coffee model, closely associated with a direct-trade model, seeks to shorten the supply chain by reducing the distance between coffee producers and consumers (Hernandez-Aguilera et al. 2018 ). This is intended to confer greater socio-economic benefits to the coffee producer by removing intermediaries and their associated costs. This approach is also being used by retailers and roasters who wish to better understand and address risks in their supply, as well as a broader recognition of addressing environmental impacts of commodity products. There are now many examples of similar producer-level support and engagement initiatives from coffee roasters around the world (Weber and Wiek 2021 ). Improved knowledge of how the relationship coffee model can drive sustainability transitions is required, particularly during these initial stages of its development. Such knowledge could include the motivations of both retailers and producers participating in these partnerships, and whether they are satisfied with the outcomes being delivered. Research may also ask whether these partnerships are perpetuating or challenging existing power dynamics in the coffee supply chain, and what the focal outcomes are, for example, whether retailers and roasters are more concerned with environmental conservation or the social and equity outcomes of sustainability.

Power dynamics in the coffee supply chain

Coffee is traded in a buyer-driven supply chain in which large multinational companies, roasters and retailers have the potential to exert undue influence and capture significant value (Bager and Lambin 2020 ). The dismantling of the coffee trade agreements and liberalization of the coffee value chain exacerbated power asymmetries, benefiting multinational traders (Mithöfer et al. 2018 ; Grabs and Ponte 2019 ). Coffee producers received less than 10% of the total value in this supply chain in 2015 (Samper and Quiñones-Ruiz 2017 ; Bager and Lambin 2020 ). A critical component of these unequal power dynamics relates to the information asymmetry in the supply chain, where smallholder farmers have less access to the required knowledge and skills to engage in a global market (Candelo et al. 2019 ). For example, farmers interviewed in Jamaica described that they lacked any knowledge of how the coffee supply chain worked, beyond the stage of delivering their beans to the local processing facility (Francis and Hyman 2013 ). They also lacked trust in the government structures set-up to support them, had no representation in governance structures, and ultimately were unable to voice their concerns (Francis and Hyman 2013 ). Future research on coffee economics could seek to identify those instances in which there is more value captured by coffee farmers and understand the dynamics which support such outcomes. Buyer-driven value chains characterize many tropical commodities and research should examine where and how such inequities are being challenged to promote just transitions towards sustainability.

Certifications and sustainability standards are intended to act in support of coffee farmers, providing some leverage for them in acquiring higher prices or bargaining power for their product (Bager and Lambin 2020 ). Others have argued that certifications serve the vested interests of coffee buyers, due to their inability to meet farmer’s needs and limited adaptation to local conditions, even suggesting they may seek to exert consumer-country control over the coffee supply chain. (Bose et al. 2016 ; Mithöfer et al. 2018 ). Although producer cooperatives represent a locally led governance structure, some farmers have expressed concerns at not being adequately engaged during cooperative decision-making processes (Hernandez-Aguilera et al. 2018 ). Thus, power asymmetry should be addressed at all stages of the coffee supply chain if these initiatives are to become truly sustainable.

In the Brazilian government “Rio Rural” programme the coffee-producing community is directly involved in the implementation of the initiative through collecting data and developing suggestions to address the sustainability challenges they encounter (Morais and César Pinheiro Da Silva 2021 ). Through such participatory approaches, it becomes possible for local actors to design and implement their own sustainability initiatives. The support of an active government department and appropriate policy in this case highlights the importance of collaboration and creating an enabling environment for coffee producers to pursue their visions of sustainability.

Sustainability governance

By classifying coffee sector sustainability initiatives according to the scale of the agents designing the initiative, we identified a bias in research focusing on initiatives governed by distant actors. Certifications and other distant initiatives may suffer from a type of social-ecological scale mismatch, wherein the capacity and expertise of the institutions aspiring to manage global coffee sustainability do not match the local scale of decisions and behaviours that collectively impact sustainability of the sector (Cumming et al. 2006 ). These global-scale initiatives provide a degree of flexibility and adaptability, but may suffer from a lack of specific knowledge regarding the local context and challenges (Bose et al. 2016 ). Such “one size fits all” approaches to environmental governance have been shown to be relatively ineffective, and yet they remain prioritized over local, decentralized approaches to governance, such as the examples we provide here (Ostrom 2010 ).

Local-scale initiatives can overcome this discrepancy by drawing on local knowledge and contexts to develop local solutions, representing a case in which coffee producers drive their own agenda for change, rather than being forced to respond to an externally imposed agenda. Authors have highlighted that there is little research examining the contributions of local initiatives to sustainability transitions (Bennett et al. 2017 ; Lam et al. 2022 ) and that impact studies in the coffee sector need to move beyond certifications to investigate a broader suite of approaches (Millard 2017 ). Given that equity is now a key focus for sustainability transitions (Temper et al. 2018 ), it is important that future research investigates novel, locally led sustainability initiatives and how well certifications recognize and reward these initiatives.

It has been hypothesized that there are four major characteristics required for successful transformative governance for biodiversity, namely that initiatives need to be integrative, adaptive, pluralist and inclusive (Visseren-Hamakers et al. 2021 ). Local-scale initiatives in the coffee sector potentially exhibit three of these characteristics; they are inclusive, empowering smallholders whose interests may previously have been overlooked; adaptive in that they allow learning and responses which suit the local context, and pluralist through their recognition and application of diverse knowledge systems. A missing element might relate to their integration, by way of learning and knowledge sharing that can subsequently encourage the development of other local-scale solutions. In addition, monetizing or capitalizing on the local-scale initiatives via local and global markets could further improve sustainability.

Partnerships for change

We documented several interactions among sustainability initiatives in the coffee supply chain. These interactions highlight how multiple actors, dispersed across various stages and scales of the supply chain are increasingly collaborating to address sustainability challenges. Producer cooperatives were often key to interactions, acting as the institution or initiative through which coffee producers obtain certification for their coffee, and facilitating access to required financial or other resources (Walenta 2015 ; Mili et al. 2019 ). Roasters implementing the relationship coffee model (RCM) also rely on certifications to inform purchasing decisions in some instances and may form partnerships with cooperatives in others (Simpson and Rapone 2000 ). A limitation with the locally led approaches is that smallholder farmers lack the resources to make these transitions themselves (Le et al. 2021 ), particularly as coffee yields can decline at first when they cease to use agrochemicals, before subsequently recovering as natural fertilizers and pest control take effect (Häger et al. 2021 ). This suggests that partnerships with NGOs and government agencies may be critical in assisting smallholders to overcome these barriers and make the transition towards more sustainable farming (Prihayati and Veriasa 2021 ). Future research could examine examples of government policies supporting grassroots initiatives to determine how best to structure such support.

Our analysis also revealed how coffee producers are applying a diversity of tools, with one case from Costa Rica including a family-owned farm which, due to concerns over pollutants and human health on the farm, has undergone a conversion back to traditional farming by applying agroecology principles (Häger et al. 2021 ). This producer used that transition back to traditional farming approaches to obtain organic certification, supported by their temporary participation in a cooperative, and subsequently established a direct-trade relationship (RCM) with a coffee buyer, and also used coffee tourism to generate further income to support their resilience. In this way they applied five different initiatives in tandem to improve their environmental, social, and economic sustainability.

Further research gaps

Our review identified discrepancies between the volume of coffee that countries produced, and the amount of research attention that they had received. Mexico has been a geographic centre for research on sustainability initiatives, whilst their total volume of production is lower than other countries such as Brazil, Vietnam, Indonesia, and Ethiopia (SI 7 ). This mismatch may be due to factors related to research logistics such as ease of travel, local research capacity, and existing state partnerships that facilitate research. As the second largest coffee producer, Vietnam has received far less research attention to date, and West African countries even less still, although these countries produce smaller volumes of coffee. Both Vietnam and West Africa correspond with robusta coffee growing territories, and climate modelling suggests that this coffee variety will be more resilient to future changes (Bunn et al. 2015 ). The environmental sustainability of arabica producing systems is studied more than robusta systems, potentially as arabica has specialty markets while robusta is primarily traded as an undifferentiated commodity crop. However, it is important that future research investigate sustainability initiatives in these less well-documented countries and coffee species.

There was a noticeable gap in research focused on global multi-actor initiatives, which were represented by only two papers in our dataset. Both of these studies examined “4C”, or the “Common Code for the Coffee Community” (Manning and von Hagen 2010 ). 4C is variously described as both a multistakeholder initiative and a certification and is different to initiatives such as the Global Coffee Platform and Sustainable Coffee Challenge, which seek to galvanize stakeholders across the global supply chain. These programmes attempt to garner commitments to action from many actors around the world, leveraging significant financial resources, and as such it is imperative that their outcomes be examined (Millard 2017 ). The lack of research for this initiative type likely reflects their very recent appearance in the coffee sector; most of these have only been developed in the last five to ten years. The complexity of these initiatives, which may include thousands of different actors at multiple scales and stages of the supply chain, will limit the kinds of research which may be undertaken. Of particular importance will be assessing whether such commitments lead to tangible changes for the actors involved, and clarifying the theory of change by which these large-scale initiatives intend to act.

Our analysis of outcomes highlighted an overall paucity of knowledge regarding which sustainability initiatives most effectively deliver positive outcomes. We thus suggest that future research focus on assessing outcomes where possible, and that it do so via the lens of theories of change, to better understand how these initiatives are structured and intend to deliver outcomes (Rice et al., 2020 ). Examination of the diverse theories of change and the assumptions underpinning each initiative type is also essential information to support their implementation and improvement. Understanding the motivations of actors participating in these initiatives and drawing from disciplines such as conservation social science is another approach which could advance the field (Dayer et al. 2020 ). Where possible, undertaking comparative research of different initiatives in similar contexts can also help us to understand which are most effective at delivering sustainability.

The diversity of sustainability initiatives in the coffee sector, and the broad suite of actors, scales, and approaches, demonstrates that coffee is on a journey towards sustainability. But the critical question remains as to how progress towards sustainability can be adequately measured and tracked. Whilst scientific research has focused on the outcomes of certifications and much attention has been given to their impact, there is a broader suite of interventions that require investigation. Additionally, environmental outcomes should be framed as a key consideration for sustainability initiatives, and we suggest that more research explicitly tests the environmental impacts of sustainability initiatives. Locally led initiatives, driven by coffee farmers themselves in response to social–ecological challenges, may represent an example of an inclusive sustainability transition and require further investigation, to broaden our understanding of the diverse pathways towards sustainability.

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The authors disclose no conflicts of interest related to the production and publication of this research. Datasets can be housed on publicly accessible platforms upon publication. Dale Wright acknowledges the support of an Australian Research Council Linkage Project Grant LP190100453 entitled Effective biodiversity behaviour change across supply chains. Ayesha Tulloch is thanked for her comments on the project.

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Wright, D.R., Bekessy, S.A., Lentini, P.E. et al. Sustainable coffee: A review of the diverse initiatives and governance dimensions of global coffee supply chains. Ambio (2024). https://doi.org/10.1007/s13280-024-02003-w

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Coffee lovers around the world who reach for their favorite morning brew probably aren’t thinking about its health benefits or risks. And yet this beverage has been subject to a long history of debate. In 1991 coffee was included in a list of possible carcinogens by the World Health Organization. By 2016 it was exonerated, as research found that the beverage was not associated with an increased risk of cancer; on the contrary, there was a decreased risk of certain cancers among those who drink coffee regularly once smoking history was properly accounted for. Additional accumulating research suggests that when consumed in moderation, coffee can be considered a healthy beverage . Why then in 2018 did one U.S. state pass legislation that coffee must bear a cancer warning label? Read on to explore the complexities of coffee.

• Vitamin B2 (riboflavin)
• Plant chemicals: polyphenols including chlorogenic acid and quinic acid, and diterpenes including cafestol and kahweol

One 8-ounce cup of brewed coffee contains about 95 mg of caffeine. A moderate amount of coffee is generally defined as 3-5 cups a day, or on average 400 mg of caffeine, according to the Dietary Guidelines for Americans.

Coffee and Health

Coffee is an intricate mixture of more than a thousand chemicals. [1] The cup of coffee you order from a coffee shop is likely different from the coffee you brew at home. What defines a cup is the type of coffee bean used, how it is roasted, the amount of grind, and how it is brewed. Human response to coffee or caffeine can also vary substantially across individuals. Low to moderate doses of caffeine (50–300 mg) may cause increased alertness, energy, and ability to concentrate, while higher doses may have negative effects such as anxiety, restlessness, insomnia, and increased heart rate. [2] Still, the cumulative research on coffee points in the direction of a health benefit. [3,4] Does the benefit stem from the caffeine or plant compounds in the coffee bean? Is there a certain amount of coffee needed a day to produce a health benefit?

Coffee may affect how cancer develops, ranging from the initiation of a cancer cell to its death. For example, coffee may stimulate the production of bile acids and speed digestion through the colon, which can lower the amount of carcinogens to which colon tissue is exposed. Various polyphenols in coffee have been shown to prevent cancer cell growth in animal studies. Coffee has also been associated with decreased estrogen levels, a hormone linked to several types of cancer. [5] Caffeine itself may interfere with the growth and spread of cancer cells. [6] Coffee also appears to lower inflammation, a risk factor for many cancers.

The 2018 uproar in California due to warning labels placed on coffee products stemmed from a chemical in the beverage called acrylamide, which is formed when the beans are roasted. Acrylamide is also found in some starchy foods that are processed with high heat like French fries, cookies, crackers, and potato chips. It was classified in the National Toxicology Program’s 2014 Report on Carcinogens , as “reasonably anticipated to be a human carcinogen” based on studies in lab animals. However, there is not yet evidence of a health effect in humans from eating acrylamide in food. Regardless, in March 2018 a California judge ruled that all California coffee sellers must warn consumers about the “potential cancer risk” from drinking coffee, because coffee-selling companies failed to show that acrylamide did not pose a significant health risk. California’s law Proposition 65, or The Safe Drinking Water and Toxic Enforcement Act of 1986, fueled the ruling, which requires a warning label to be placed on any ingredient from a list of 900 confirmed or suspected carcinogens.

However, many cancer experts disputed the ruling , stating that the metabolism of acrylamide differs considerably in animals and humans, and the high amount of acrylamide used in animal research is not comparable to the amount present in food. They cited the beneficial health effects of coffee, with improved antioxidant responses and reduced inflammation, both factors important in cancer prevention. Evidence from the American Institute for Cancer Research concludes that drinking coffee may  reduce risk for endometrial and liver cancer , and based on a systematic review of a large body of research, it is not a risk for the cancers that were studied.

In June 2018, the California Office of Environmental Health Hazard Assessment (OEHHA) proposed a new regulation exempting coffee from displaying cancer warnings under Proposition 65. This proposal was based on a review of more than 1,000 studies published by the World Health Organization’s International Agency for Research on Cancer that found inadequate evidence that drinking coffee causes cancer. In January 2019, OEHHA completed its review and response to comments and submitted the regulation to the Office of Administrative Law (OAL) for final review.

Although ingestion of caffeine can increase blood sugar in the short-term, long-term studies have shown that habitual coffee drinkers have a lower risk of developing type 2 diabetes compared with non-drinkers. The polyphenols and minerals such as magnesium in coffee may improve the effectiveness of insulin and glucose metabolism in the body.

• In a meta-analysis of 45,335 people with type 2 diabetes followed for up to 20 years, an association was found with increasing cups of coffee and a lower risk of developing diabetes. Compared with no coffee, the decreased risk ranged from 8% with 1 cup a day to 33% for 6 cups a day. Caffeinated coffee showed a slightly greater benefit than decaffeinated coffee. [7]
• Another meta-analysis of prospective cohort studies showed similar associations. When comparing the highest intake of coffee (up to 10 cups a day) with the lowest (<1 cup), there was a 30% decreased risk of type 2 diabetes in those drinking the highest amounts of coffee and caffeine and a 20% decreased risk when drinking decaffeinated coffee. Further analysis showed that the incidence of diabetes decreased by 12% for every 2 extra cups of coffee a day, and 14% for every 200 mg a day increase in caffeine intake (up to 700 mg a day). [8]

Caffeine is a stimulant affecting the central nervous system that can cause different reactions in people. In sensitive individuals, it can irritate the stomach, increase anxiety or a jittery feeling, and disrupt sleep. Although many people appreciate the temporary energy boost after drinking an extra cup of coffee, high amounts of caffeine can cause unwanted heart palpitations in some.

Unfiltered coffee, such as French press and Turkish coffees, contains diterpenes, substances that can raise bad LDL cholesterol and triglycerides. Espresso coffee contains moderate amounts of diterpenes. Filtered coffee (drip-brewed coffee) and instant coffee contain almost no diterpenes as the filtering and processing of these coffee types removes the diterpenes.

Despite these factors, evidence suggests that drinking coffee regularly may lower the risk of heart disease and stroke :

• Among 83,076 women in the Nurses’ Health Study, drinking 4 or more cups of coffee each day was associated with a 20% lower risk of stroke compared with non-drinkers. Decaffeinated coffee also showed an association, with 2 or more cups daily and a 11% lower stroke risk. The authors found no such association with other caffeinated drinks such as tea and soda. These coffee-specific results suggest that components in coffee other than caffeine may be protective. [9]
• A large cohort of 37,514 women concluded that moderate coffee drinking of 2-3 cups a day was associated with a 21% reduced risk of heart disease. [10]
• In addition, a meta-analysis of 21 prospective studies of men and women looking at coffee consumption and death from chronic diseases found a link between moderate coffee consumption (3 cups per day) and a 21% lower risk of cardiovascular disease deaths compared with non-drinkers. [11]
• Another meta-analysis of 36 studies including men and women reviewed coffee consumption and risk of cardiovascular diseases (including heart disease, stroke, heart failure, and deaths from these conditions). It found that when compared with the lowest intakes of coffee (average 0 cups), a moderate coffee intake of 3-5 cups a day was linked with a 15% lower risk of cardiovascular disease. Heavier coffee intake of 6 or more cups daily was neither associated with a higher nor a lower risk of cardiovascular disease. [12]

Naturally occurring polyphenols in both caffeinated and decaffeinated coffee can act as antioxidants to reduce damaging oxidative stress and inflammation of cells. It may have neurological benefits in some people and act as an antidepressant. [13] Caffeine may affect mental states such as increasing alertness and attention, reducing anxiety, and improving mood. [14] A moderate caffeine intake of less than 6 cups of coffee per day has been associated with a lower risk of depression and suicide. However in a few cases of sensitive individuals, higher amounts of caffeine may increase anxiety, restlessness, and insomnia. Suddenly stopping caffeine intake can cause headache, fatigue, anxiety, and low mood for a few days and may persist for up to a week. [15]

• A prospective cohort study following 263,923 participants from the National Institutes of Health and American Association of Retired Persons found that those who drank 4 or more cups of coffee a day were almost 10% less likely to become depressed than those who drank none. [15]
• In a meta-analysis of observational studies including 330,677 participants, the authors found a 24% reduced risk of depression when comparing the highest (4.5 cups/day) to lowest (<1 cup) intakes of coffee. They found an 8% decreased risk of depression with each additional cup of coffee consumed. There was also a 28% reduced risk of depression comparing the highest to lowest intakes of caffeine, with the greatest benefit occurring with caffeine intakes between 68 and 509 mg a day (about 6 oz. to 2 cups of coffee). [16]
• A review looking at three large prospective cohorts of men and women in the U.S. found a decreasing risk of suicide with increasing coffee consumption. When compared with no-coffee drinkers, the pooled risk of suicide was 45% lower among those who drank 2-3 cups daily and 53% lower among those who drank 4 or more cups daily. There was no association between decaffeinated coffee and suicide risk, suggesting that caffeine was the key factor, rather than plant compounds in coffee. [17]
• A systematic review of 26 studies including cohort and case-control studies found a 25% lower risk of developing PD with higher intakes of caffeinated coffee. It also found a 24% decreased risk with every 300 mg increase in caffeine intake. [18]
• A Finnish cohort study tracked coffee consumption and PD development in 6,710 men and women over 22 years. In that time, after adjusting for known risks of PD, those who drank at least 10 cups of coffee a day had a significantly lower risk of developing the disease than non-drinkers. [19]
• A large cohort of men and women were followed for 10 and 16 years, respectively, to study caffeine and coffee intake on PD. The results showed an association in men drinking the most caffeine (6 or more cups of coffee daily) and a 58% lower risk of PD compared with men drinking no coffee. Women showed the lowest risk when drinking moderate intakes of 1-3 cups coffee daily. [20]
• However, three systematic reviews were inconclusive about coffee’s effect on Alzheimer’s disease due to a limited number of studies and a high variation in study types that produced mixed findings. Overall the results suggested a trend towards a protective effect of caffeine against late-life dementia and Alzheimer’s disease, but no definitive statements could be made. The authors stated the need for larger studies with longer follow-up periods. Randomized controlled trials studying a protective effect of coffee or caffeine on the progression of Alzheimer’s disease and dementia are not yet available. [21-23]

There are various proposed actions of caffeine or components in coffee that may prevent the formation of gallstones. The most common type of gallstone is made of cholesterol. Coffee may prevent cholesterol from forming into crystals in the gallbladder. It may stimulate contractions in the gallbladder and increase the flow of bile so that cholesterol does not collect. [24]

A study of 46,008 men tracked the development of gallstones and their coffee consumption for 10 years. After adjusting for other factors known to cause gallstones, the study concluded that men who consistently drank coffee were significantly less likely to develop gallstones compared to men who did not. [24] A similar large study found the same result in women. [25]

• In a large cohort of more than 200,000 participants followed for up to 30 years, an association was found between drinking moderate amounts of coffee and lower risk of early death. Compared with non-drinkers, those who drank 3-5 cups of coffee daily were 15% less likely to die early from all causes, including cardiovascular disease, suicide, and Parkinson’s disease. Both caffeinated and decaffeinated coffee provided benefits. The authors suggested that bioactive compounds in coffee may be responsible for interfering with disease development by reducing inflammation and insulin resistance. [26]
• In a large prospective cohort of more than 500,000 people followed for 10 years, an association was found between drinking higher amounts of coffee and lower rates of death from all causes. Compared with non-drinkers, those drinking 6-7 cups daily had a 16% lower risk of early death. [26] A protective association was also found in those who drank 8 or more cups daily. The protective effect was present regardless of a genetic predisposition to either faster or slower caffeine metabolism. Instant and decaffeinated coffee showed a similar health benefit.

The bottom line: A large body of evidence suggests that consumption of caffeinated coffee does not increase the risk of cardiovascular diseases and cancers. In fact, consumption of 3 to 5 standard cups of coffee daily has been consistently associated with a reduced risk of several chronic diseases. [4] However, some individuals may not tolerate higher amounts of caffeine due to symptoms of jitteriness, anxiety, and insomnia. Specifically, those who have difficulty controlling their blood pressure may want to moderate their coffee intake. Pregnant women are also advised to aim for less than 200 mg of caffeine daily, the amount in 2 cups of coffee, because caffeine passes through the placenta into the fetus and has been associated with pregnancy loss and low birth weight. [3, 27] Because of the potential negative side effects some people experience when drinking caffeinated coffee, it is not necessary to start drinking it if you do not already or to increase the amount you currently drink, as there are many other dietary strategies to improve your health. Decaffeinated coffee is a good option if one is sensitive to caffeine, and according to the research summarized above, it offers similar health benefits as caffeinated coffee. It’s also important to keep in mind how you enjoy your brew. The extra calories, sugar, and saturated fat in a coffee house beverage loaded with whipped cream and flavored syrup might offset any health benefits found in a basic black coffee.

What about iced coffee?

Coffee beans are the seeds of a fruit called a coffee cherry. Coffee cherries grow on coffee trees from a genus of plants called Coffea . There are a wide variety of species of coffee plants, ranging from shrubs to trees.

• Type of bean. There are two main types of coffee species, Arabica and Robusta. Arabica originates from Ethiopia and produces a mild, flavorful tasting coffee. It is the most popular type worldwide. However, it is expensive to grow because the Arabica plant is sensitive to the environment, requiring shade, humidity, and steady temperatures between 60-75 degrees Fahrenheit. The Robusta coffee plant is more economical to grow because it is resistant to disease and survives in a wider range of temperatures between 65-97 degrees Fahrenheit. It can also withstand harsh climate changes such as variations in rainfall and strong sunlight.
• Type of roast. Coffee beans start out green. They are roasted at a high heat to produce a chemical change that releases the rich aroma and flavor that we associate with coffee. They are then cooled and ground for brewing. Roasting levels range from light to medium to dark. The lighter the roast, the lighter the color and roasted flavor and the higher its acidity. Dark roasts produce a black bean with little acidity and a bitter roasted flavor. The popular French roast is medium-dark.
• Type of grind. A medium grind is the most common and used for automatic drip coffee makers. A fine grind is used for deeper flavors like espresso, which releases the oils, and a coarse grind is used in coffee presses.

Decaffeinated coffee . This is an option for those who experience unpleasant side effects from caffeine. The two most common methods used to remove caffeine from coffee is to apply chemical solvents (methylene chloride or ethyl acetate) or carbon dioxide gas. Both are applied to steamed or soaked beans, which are then allowed to dry. The solvents bind to caffeine and both evaporate when the beans are rinsed and/or dried. According to U.S. regulations, at least 97% of the caffeine must be removed to carry the decaffeinated label, so there may be trace residual amounts of caffeine. Both methods may cause some loss of flavor as other naturally occurring chemicals in coffee beans that impart their unique flavor and scent may be destroyed during processing.

A plain “black” cup of coffee is a very low calorie drink—8 ounces only contains 2 calories! However, adding sugar, cream, and milk can quickly bump up the calorie counts. A tablespoon of cream contains 52 calories, and a tablespoon of whole milk contains 9 calories. While 9 calories isn’t a lot, milk is often poured into coffee without measuring, so you may be getting several servings of milk or cream in your coffee. A tablespoon of sugar contains 48 calories, so if you take your coffee with cream and sugar, you’re adding over 100 extra calories to your daily cup.

However, the real caloric danger occurs in specialty mochas, lattes, or blended ice coffee drinks. These drinks are often super-sized and can contain anywhere from 200-500 calories, as well as an extremely large amount of sugar. With these drinks, it’s best to enjoy them as a treat or dessert, and stick with plain, minimally sweetened coffee on a regular basis

• Place beans or ground coffee in an airtight opaque container at room temperature away from sunlight. Inside a cool dark cabinet would be ideal. Exposure to moisture, air, heat, and light can strip coffee of its flavor. Coffee packaging does not preserve the coffee well for extended periods, so transfer larger amounts of coffee to airtight containers.
• Coffee can be frozen if stored in a very airtight container. Exposure to even small amounts of air in the freezer can lead to freezer burn.
• Follow directions on the coffee package and your coffee machine, but generally the ratio is 1-2 tablespoons of ground coffee per 6 ounces of water.
• For optimal coffee flavor, drink soon after brewing. The beverage will lose flavor with time.
• Use ground coffee within a few days and whole beans within two weeks.

Did You Know?

• It is a myth that darker roasts contain a higher level of caffeine than lighter roasts. Lighter roasts actually have a slightly higher concentration!
• Coffee grinds should not be brewed more than once. Brewed grinds taste bitter and may no longer produce a pleasant coffee flavor.
• While water is always the best choice for quenching your thirst, coffee can count towards your daily fluid goals. Although caffeine has a mild diuretic effect, it is offset by the total amount of fluid from the coffee.

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• Ding M, Bhupathiraju SN, Satija A, van Dam RM, Hu FB. Long-term coffee consumption and risk of cardiovascular disease: a systematic review and a dose-response meta-analysis of prospective cohort studies. Circulation . 2014 Feb 11;129(6):643-59.
• Ding M, Satija A, Bhupathiraju SN, Hu Y, Sun Q, Han J, Lopez-Garcia E, Willett W, van Dam RM, Hu FB. Association of Coffee Consumption With Total and Cause-Specific Mortality in 3 Large Prospective Cohorts. Circulation . 2015 Dec 15;132(24):2305-15.
• Lara DR. Caffeine, mental health, and psychiatric disorders. J Alzheimers Dis . 2010;20 Suppl 1:S239-48.
• Guo X, Park Y, Freedman ND, Sinha R, Hollenbeck AR, Blair A, Chen H. Sweetened beverages, coffee, and tea and depression risk among older US adults. PLoS One . 2014 Apr 17;9(4):e94715.
• Wang L, Shen X, Wu Y, Zhang D. Coffee and caffeine consumption and depression: A meta-analysis of observational studies. Aust N Z J Psychiatry . 2016 Mar;50(3):228-42.
• Lucas M, O’Reilly EJ, Pan A, Mirzaei F, Willett WC, Okereke OI, Ascherio A. Coffee, caffeine, and risk of completed suicide: results from three prospective cohorts of American adults. World J Biol Psychiatry . 2014 Jul;15(5):377-86.
• Costa J, Lunet N, Santos C, Santos J, Vaz-Carneiro A. Caffeine exposure and the risk of Parkinson’s disease: a systematic review and meta-analysis of observational studies. J Alzheimers Dis . 2010;20 Suppl 1:S221-38.
• Sääksjärvi K, Knekt P, Rissanen H, Laaksonen MA, Reunanen A, Männistö S. Prospective study of coffee consumption and risk of parkinson’s disease. Eur J Clin Nutr . 2008;62:908–915.
• Ascherio A, Zhang SM, Hernan MA, Kawachi I, Colditz GA, Speizer FE, Willett WC. Prospective study of caffeine consumption and risk of parkinson’s disease in men and women. Ann Neurol . 2001;50:56–63.
• Panza F, Solfrizzi V, Barulli MR, Bonfiglio C, Guerra V, Osella A, Seripa D, Sabbà C, Pilotto A, Logroscino G. Coffee, tea, and caffeine consumption and prevention of late-life cognitive decline and dementia: a systematic review. J Nutr Health Aging . 2015 Mar;19(3):313-28.
• Santos C, Costa J, Santos J, Vaz-Carneiro A, Lunet N. Caffeine intake and dementia: systematic review and meta-analysis. J Alzheimers Dis . 2010;20 Suppl 1:S187-204.
• Carman AJ, Dacks PA, Lane RF, Shineman DW, Fillit HM. Current evidence for the use of coffee and caffeine to prevent age-related cognitive decline and Alzheimer’s disease. J Nutr Health Aging . 2014 Apr;18(4):383-92.
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Last reviewed July 2020

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Case Study on Café Coffee Day (CCD): Success Story

Varad Kitey , Akash Kushwaha

Café Coffee Day , popularly known as CCD, is not only a coffeehouse for the individuals of India but has become India’s favorite place for coffee and conversations today. Founded in 1996, the Bengaluru-based Indian multinational chain of coffeehouses has emerged to be one of the favorite haunts of the millennial and the Gen Z group within a concise time.

CCD had served over 1.6 billion cups of coffee annually in six countries when it discovered that it was on the brink of bankruptcy. This is why it decided to shut down its operations outside India. It was present in a list of countries — Austria, Czech Republic, Malaysia, Nepal, and Egypt prior to this decision.

The first Café Coffee Day outlet was set up by CCD owner V. G. Siddhartha on July 11, 1996, in Bangalore, Karnataka, with the slogan' A big deal can occur over some espresso'.

Café Coffee Day quickly extended through the urban areas in India, including new stores with more than 2000 bistros opened all over the nation by 2016. In a range of 20 years, CCD has blended its approach to progress, with the fame and cherish it has reaped.

History of CCD How CCD Started the Journey? Mounting Debts and Controversies The Missing of the Founder of CCD and his Death Cafe Coffee Day Business Plan And Marketing The Present Day CCD Achievements of CCD FAQs on CCD

History of CCD

Café Coffee Day Global Limited Company is a Chikkamagaluru-based business that produces coffee on its very own land of 20,000 acres. It is the biggest maker of arabica beans in Asia , sent out to different nations including the U.S., Europe, and Japan.

V. G. Siddhartha began the Café chain in 1996 when he started Coffee Day Global, which is the parent of the Coffee Day chain. The first outlet was opened on July 11, 1996, in Bangalore, Karnataka.

Soon after the foundation of CCD Coffee, the biggest challenge faced by Café Coffee was to make a revolutionary change in Indian culture where the majority of the population preferred drinking tea rather than coffee.

CCD quickly extended to different urban cities in India, with more than 1000 bistros opened in the country by 2011. In 2010, it was declared that a consortium driven by Kohlberg Kravis Roberts would invest ₹10 billion in Coffee Day resorts which are owned by CCD. It was during the same time the brand changed its logo to the present logo that is used by the company to feature the chain as a spot or place to talk.

This was finished with real changes in the format of the stores, including the expansion of parlors and a complete redo of the interiors, and, above all, its slogan “A lot can happen over coffee.” The organization is vertically incorporated to cut expenses: from owning the plantations to becoming the coffee, preparing the espresso machines, and making the furniture for the outlets.

How CCD Started the Journey?

CCD started its journey with the incorporation of its parent Coffee Day Global Limited Company in 1996 by V.G. Siddhartha. It was on July 11, 1996, when the first CCD outlet was set up at Brigade Road, Bangalore, Karnataka.

Siddhartha did his Master's in Economics from Mangalore University and had an enthusiasm for innovation . VG Siddhartha dived deep into the stock market in his early career. He had worked for JM Financial and Investment Consultancy in Mumbai when he was just 24 years of age. Veerappa Gangaiah Siddhartha Hegde acted there as a Management Trainee/Intern in portfolio Management and Securities Trading on the Indian Stock Market under Vice-Chairman Mahendra Kampani.

However, after completing his 2 years of work anniversary with JM Financial Limited, VG Siddhartha had to return to Bangalore when he received the capital from his father to start a business of his choice.

VG Siddhartha started by buying a stock market card for Rs 30,000, and a company called Sivan Securities, which was later renamed Way2wealth Securities Ltd. The venture capital division of the company came to be known as Global Technology Ventures (GTV).

Siddhartha emerged as a full-time proprietary investor in the stock market in 1985. Furthermore, he also became the owner of 10,000 acres of coffee farms by then.

"When coffee trading was liberalised in the ’90s, I doubled the money I had invested in the plantations within a year," said VG Siddhartha.

It was then that the Amalgamated Bean Coffee Trading Company Ltd (ABCTCL), a company that focused on coffee exports, was born in 1993.

Siddhartha's plantations began to produce 3,000 tonnes of coffee, and with the help of ABCTCL, he traded over 20,000 tonnes. This way, in around two years, the company became the second-largest exporter from India.

As soon as its first coffee outlet or CCD store was set up on Bangalore’s crowded Brigade Road, it began to start a new journey.

The company soon expanded far and wide with its revolutionary concept, which allowed the millennials to sit and talk while sipping on their favorite beverage.

CCD is India's largest coffee chain to date and is owned by Coffee Day Global, a subsidiary of Coffee Day Enterprises.

He was inspired by the proprietors of the "driving espresso brand in Germany, — Tchibo". This motivation gave Siddhartha a dream of an alternate world generally speaking and opened his eyes. It likewise gave a heavenly idea. With that thought, cup by cup he made his Billion dollar domain .

The company owned around 1,700 cafes, 48,000+ vending machines, 532 kiosks, and more than 403 ground coffee-selling outlets. The annual turnover of Coffee Day Enterprises was worth Rs 4,264 crore, as per a Moneycontrol report of 2019.

Mounting Debts and Controversies

Café Coffee Day had accumulated a total debt of around Rs 6,550 crore, as was reported in March 2019.

The coffee price hit a 13-year low in the international market, which also dragged the Indian prices when the Indian coffee exports too were down by 10 %. To combat this debt, Siddhartha had to sell his entire 20.32% stake in the Bengaluru-headquartered IT services firm, Mindtree to the engineering major, L&T for around Rs 3,200 crore. He was the largest shareholder in Mindtree and exited the company after remaining invested for close to two decades.

The mounting debts were just unsettling not only for the business but for Siddhartha as well. Even with the sale of his own stakes, going ahead turned out to be really tough because the working capital requirements could not be met.

All these led Siddhartha to strike a deal with the global beverage maker Coca-Cola for an equity sale in the flagship Café Coffee Day (CCD) at an enterprise valuation of around Rs 10,000 crore. Besides, Blackstone was also reportedly in talks with the company to buy a majority stake in the real estate venture of the founder, known as Tanglin Developments, for around Rs 2,800 crore.

VG Siddhartha slowly started to come under the radar of the Income Tax Department, which first raided the premises of the Café Coffee Day owner in September 2017. They discovered around Rs 650 crore of concealed income from the documents seized when they concluded the search and seize operations.

The income tax raids were also eventually conducted at 20+ locations, including Mumbai, Bengaluru, Chennai, and Chikmagalur, by the senior officers of the Income Tax Department of Karnataka and Goa regions.

The Missing Founder of CCD and his Death

Siddhartha had been found missing since July 29, 2019, and this news of the missing MD was further confirmed by Coffee Day Enterprises.

Siddhartha had been found missing since July 29, 2019, and this news of the missing MD was further confirmed by Coffee Day Enterprises. Siddhartha had allegedly told his driver that he would be going for a walk near the bridge and asked him to wait at a distance on the 29th of July 2019. The driver lodged a missing complaint with the police after waiting for two long hours for his return. A fisher claimed that he saw someone jumping off the bridge, but it was only allegedly true until two days later when his body was found in the Nethravathi river backwaters.

The Café Coffee Day boss VG Siddhartha had supposedly left a letter where he expressed his unhappiness over not creating "the right profitable business". Besides, he also alleged that a senior income tax officer allegedly harassed him.

"I have failed to create the right profitable business model despite my best efforts. I would like to say I gave it my all. I am very sorry to let down all the people that put their trust in me. I fought for a long time, but today I gave up as I could not take any more pressure."

"I could not take any more pressure from one of the private equity partners forcing me to buy back shares, a transaction I had partially completed six months ago by borrowing a large sum of money from a friend. Tremendous pressure from other lenders led to me succumbing to the situation. There was a lot of harassment from the previous DG income tax in the form of attaching our shares on two separate occasions to block our Mindtree deal and then taking the position of our Coffee Day shares... This was very unfair and has led to a serious liquidity crunch," goes the last letter from the CCD chief.

In September 2019, the organization named reviewing firm Ernst and Young to examine their books of records. They also asked the inspector to investigate the conditions of the last letter composed by Siddhartha and the focus he put on it.

CCD Business Plan And Marketing

CCD has adopted a very effective business strategy, which is compartmentalized below.

Innovation and Expansion

The humongous amount of sustenance and refreshments made CCD possible. Besides, the ambitious moves of CCD and its rapid expansion into level 2 urban communities of India and other remote areas were some triumphant techniques that encouraged CCD to be on the fronts of its rivals like Starbucks and Barista .

Its different auxiliaries like Coffee Day Fresh 'n' Ground, Coffee Day Square, Coffee Day Resorts, Coffee Day Beverages, and so forth have helped the organization to satisfy the client's needs and stay ahead simultaneously.

Also, CCD’s regular involvement on Twitter , Facebook , and Instagram further engaged its customers. Café Coffee Day also brought in the character, Beano, to connect with the purchasers in 2016.

Strategy of Distribution

As of March 2020, there are 1,752 CCD outlets crosswise over 29 states of India. Café Coffee Day has likewise extended outside India with its outlets in Austria (Vienna), the Czech Republic, Dubai, Malaysia, and Cairo, Egypt. The Indian sorted-out division has the potential for around 5,000 bistros, yet less than 1,000 bistros exist, as of now.

Difference In Concoction

These are some prominent moves that made CCD stand out from its peers and rivals:

• Past nourishment, the emphasis is on getting the experience right. CCD propelled its application to follow shopper conduct, customize offers and advancements, empower cashless exchanges through implicit wallets, and fabricate unwaveringly.
• In 2016, CCD partnered with Freecharge to empower cashless exchanges at the outlets, where the clients could utilize their portable numbers to pay and finish the exchange in under 10 seconds. Be that as it may, Harminder Sahni, author, and MD Wazir Advisors, consider these as strategic contributions.
• To further lift involvement, CCD started Café Concerts in 2016 with attention to live gigs in Mumbai , Delhi , Pune , and Bengaluru. Cafe concerts were unique at the time when it was introduced by CCD and played a big hand in hooking the young crowd.

The 3As Strategy

The chief components influencing rivalry in the espresso retail area include evaluating, item/administration quality, brand recognition, taste, and item assortment.

To separate itself from rivalry, CCD has manufactured its retail procedure on 3As:

Affordability — CCD ensures that it attracts every kind of customer — be it a school/college student or an office goer, at an affordable price.

Accessibility — The goal of the brand was to ensure that the cafes should be within arm's reach. CCD believes in serving people across the country by providing the same experience everywhere.

Acceptability — CCD ensures that consumers should buy and drink their product without compromising on taste. The strategy was to bring people together to relax and unwind. The company further encouraged its customers with its catchy tagline that says "Let us catch up on CCD" that every Indian must have heard at one point or another.

The Present Day CCD

Café Coffee Day reportedly shut down around 280 outlets in the wake of FY20 and with this, the company reported a total of 1480 outlets, as per the reports dated June 30, 2020.

The company had been trying to pare its debts with the sale of its non-core assets after the death of its founder. CCD has announced to repay its debts worth Rs 1644 crore to 13 of its lenders. This had been possible with the sale of its technology business park to Blackstone Group and Salarpuria Sattva at an enterprising value of Rs 2,700 crore. The company also sold its stakes to Mindtree and L & L&T previously.

The company's net debt was worth Rs 2,909.95 crore in the FY20 and as per the latest reports dated March 31, 2021, CDEL's net debt came down to Rs 1,731 crore.

It was during the same time that CDEL announced that it had appointed Justice Manjunath to "suggest and oversee actions", who will supervise the recovery of over Rs 3,535 crore, which was allegedly siphoned out of the company into Mysore Amalgamated Coffee Estates Limited (MACEL), which goes as a personal firm promoted by its late founder V G Siddhartha.

The last report said that the "Management of the Company is putting its best efforts to get back the company on track." It further added that "the debt levels have reduced significantly from the beginning of the financial year March 2021."

CDEL's net operational revenue was measured on a consolidated basis in FY21, which was valued at Rs. 853 crores against Rs. 2,522 crores in FY20.

The brand currently has a presence in the coffee, logistics, and hospitality segments. The coffee business of the company, which includes its popular café chain brand Café Coffee Day (CCD), contributed around 47% of its consolidated net revenue. The other remaining parts were a result of its logistics business and logistics, which accounted for 45% and 8% of the revenues.

CCD currently operates 572 cafes, which run in 165 cities, and 333 CCD Value Express kiosks. Furthermore, it also boasts of having 36,326+ vending machines to "dispense coffee in corporate workplaces and hotels under the brand".

Achievements of CCD

• 2007 - Cafe Coffee Day won the Times Food Award under the category of "Best Coffee Bar" from the Times of India
• 2008 - Cafe Coffee Day won the Burrper's Choice Award for being cast a ballot as the "Coolest Café" by the clients of burrp.com
• 2009 - Espresso Day Global won the honor of "Retailer of the Year" under the classification of Food & Beverages (cooking administrations) by the Asia Retail Congress
• 2010 - Cafe Coffee Day won the Indian Hospitality Excellence Award under the category of "India's Most Popular Coffee Joint: 2010"
• 2012 - Cafe Coffee Day was positioned as 26th Most Trusted Service Brand in India and as the second Most Exciting Brand under the classification of "Nourishment Services" in India under a study done by Brand Equity (EconomicTimes)
• 2012 - Cafe Coffee Day won the Best Coffee Bar Award from mouthshut.com
• 2013 - Cafe Coffee Day was positioned as 26th Most Trusted Service Brand in India under a study done by Brand Equity (Economic Times)
• 2013 - Cafe Coffee Day was granted "The NCPEDP – Shell Helen Keller Award 2013" by the National Center for Promotion of Employment for Disabled People for being a good example organization in creating work open doors for individuals with inabilities
• 2013 -Espresso Day Global was granted as the Best Retailer under the class of "Best Customer Service in Café Restaurant" by the Star Retailer Awards
• 2013 - CafeCoffee Day won the Brand Excellence Award in retail part from ABP news
• 2012-2013 - Espresso Day Global was granted a bronze prize by the Coffee Board of India for being the third-best exporter of green espresso
• 2014 - Espresso Day Global was granted "Retailer of the Year" (Organization Food and Grocery) for retail greatness by ABP News
• 2014 - Espresso Day Global was granted 'Retailer of the Year for brand greatness by ABP News
• 2014 - Cafe Coffee Day was positioned as 22nd Most Trusted Service Brand in India, as 27th Most Exciting Brand in India, and as second Most Exciting Brand under the class of "Nourishment Services" in India, under an overview done by Brand Equity (Economic Times)
• 2014 - Mr. V G Siddhartha was conferred upon the 'ET Retail Hall of Fame for his commitment to the development of the retail part

FAQs on CCD

Is cafe coffee day in debt.

Yes, CCD is in debt for a long time. Coffee Day Enterprises said it has Rs518 crore of debt including both short and long term and that it has defaulted on about Rs 263 crore of payments.

Is Cafe Coffee Day shutting down?

Almost 500 cafe outlets of the coffee chain Cafe Coffee Day have been closed down since April 2019, as the company looks to arrest the falling profitability of its coffee business and readies for divestment of the business. CCD had to close these outlets as it readies for divestment.

What happened with Cafe Coffee Day?

Coffee Day Enterprises Limited reported that at least ₹2,000 crores ($270 million) is missing from its accounts, soon after the death of founder V.G. Siddhartha which led to an investigation initiated by their board.

What is CCD Slogan?

"A lot can happen over coffee", is the slogan of Cafe Coffee Day.

Who are the competitors of Cafe Coffee Day?

A few cafe coffee day competitors are - Starbucks, Costa Coffee, Barista, and Gloria's.

Can I sit and work in CCD?

It's ok to sit and work until you're asked to leave.

Why is CCD in loss?

CCD is at a loss because the founder V.G. Siddhartha died of an apparent suicide in 2019. His sudden death came as a surprise and caused a huge loss to the company. Also, the brand has suffered another hit due to the Covid-19 pandemic and the lockdown.

What should I order at CCD?

You can order CCD combos, snacks, sandwiches, and coffee.

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Helping Starbucks design stores that are inclusive for all

On this page: Opportunity | Solution | Impact

The Opportunity

Elevating standards of accessibility.

One in four adults in the U.S. have a disability. While retail spaces must comply with ADA codes, once elements like moveable furniture and merchandise are added, accessibility can become limited. Starbucks is hoping to set an elevated standard of accessibility by going beyond ADA requirements to create spaces that make everyone feel welcome.

With 16,000 stores in the U.S., the coffee giant knew it had a big opportunity to catalyze change for this large and diverse population. Starbucks wanted to make accessible design the rule rather than the exception for its customers and employees.

“Designing for people with disabilities is just good design for everybody,” says Katie Young, Starbucks SVP of Store Operations. “We wanted to create a broader spectrum of choice and independence for everyone at our stores.”

Designing for people with disabilities is just good design for everybody. We wanted to create a broader spectrum of choice and independence for everyone at our stores. Katie Young Starbucks SVP of Store Operations

In 2021, Starbucks began working with McKinsey to develop elements of inclusive store design to reduce friction for those with disabilities and support independence for all in any built retail environment. The work included understanding potential points of exclusion and creating guidelines – what Starbucks now calls the Inclusive Spaces Framework – to make spaces more accessible for persons with disabilities.

“The entirety of this work was not just about building something that’s just specific to Starbucks,” says McKinsey partner Anne Kronschnabl. “They wanted to develop guidelines to help change the retail industry at large. We wanted something that was specific enough so that Starbucks could implement it in new store design, and broad enough for other retailers to be able to use it.”

The Solution

Minimizing points of exclusion.

McKinsey worked with Starbucks to identify barriers that may exist for people with disabilities throughout the customer journey. Heatmaps showed pain points around entering the store, ordering, and navigating spaces like the drive-thru and restrooms.

Then the team worked on ideating potential solutions to eliminate or minimize points of exclusion throughout those spaces.

We wanted something that was specific enough so that Starbucks could implement it in new store design, and broad enough for other retailers to be able to use it. Anne Kronschnabl McKinsey partner

One critical element of the approach was that persons with lived experiences were an integral part of the team, participating in every step of the work.

“We were very intentional about who we had on our working team and made sure we had people representing different disability types involved in ideation and prioritization,” says Anne. “We made sure to have lots of involvement from individuals with lived experiences.”

This led to a set of proposed changes such as wider spaces to allow easier access for wheelchair users, better signage in critical locations and at varying heights, and a variety of sound and lighting zones to accommodate varying sensory needs.

Starbucks also wanted to focus on the employee experience. We looked at the employee journey and redesigned employee spaces with accessibility as a priority. More inclusive equipment was introduced, including a new drip brewer designed with a larger dial and visual and haptic feedback.

A new set of accessibility guidelines

In February of 2024, Starbucks opened its first retail space designed using this inclusive spaces framework in Washington, DC. It now plans to scale the design efforts across more stores.

It’s a significant commitment. This year Starbucks plans to grow its U.S. footprint by around 4 percent, with plans to open around 600 new stores in addition to the existing 16,000 stores across the U.S.

Growth plans will include the use of these new accessibility guidelines so that all newly built and renovated Starbucks company-operated stores in the U.S. will incorporate these more inclusive design elements.

The retailer is also thinking beyond its own walls. Starbucks plans to share this inclusive design framework with other retailers and is standing up an Inclusive Spaces Coalition. The hope is that more retailers across the U.S. and beyond will use these learnings to make their built environments as inclusive as possible for customers and employees.

“This framework defines how Starbucks will help expand independence, choice, and ease for all people across physical and digital spaces," says Starbucks CEO, and McKinsey alum, Laxman Narasimhan in a LinkedIn post . "Developed alongside a diverse community of customers, partners, and accessibility experts, the framework will be open-source to help expand accessibility across the entire retail industry."

Anne Kronschnabl

Becca Coggins

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Coffee Wars in India: Cafe Coffee Day Takes on the Global Brands

By: David B. Yoffie, Tanya Bijlani

Café Coffee Day (CCD) is contemplating how to respond to the entry of Starbucks into the Indian coffee chain market. The case study describes the emergence of CCD as the leading coffee chain in…

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Café Coffee Day (CCD) is contemplating how to respond to the entry of Starbucks into the Indian coffee chain market. The case study describes the emergence of CCD as the leading coffee chain in India, with over 1,400 cafes in India. In early 2013, Starbucks, the world's leading coffee chain company, opened its first 11 outlets in India's metropolitan cities with local giant, Tata, and promises of a national roll out. CCD management debated whether there was plenty of room for both Starbucks and CCD in India's large growing market, or whether Starbucks' entry required CCD to respond more assertively.

Learning Objectives

The purpose is focus on competitor analysis and competitive interaction.

Aug 8, 2013 (Revised: Jul 7, 2014)

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Modernist Coffee / The Crossboundaries

• Curated by Hana Abdel
• Architects: The Crossboundaries
• Area Area of this architecture project Area:  2250 ft²
• Year Completion year of this architecture project Year:  2019
• Photographs Photographs: Ishita Sitwala, The Fishy Project
• Manufacturers Brands with products used in this architecture project Manufacturers:   AutoDesk , Lumion , Jaquar , MICROCRETE , Magik , Mykarment , Olvvi , Philips Lights , Rancilio Group , Samsung , Trimble Navigation
• Architect In Charge:  Harsh Boghani
• Design Team:  Forum Jariwala, Vijay Dhabi, Neel Patel, Rishabh Prajapati, Khushboo Gunjal, Nidhi Vyas, Dhruv Prajapati, Pooshan Mahajan, Akshay Mer, Shailesh Boghani, Harsh Boghani
• Clients:  Dhaval Mehta, Nishar Diwan
• Artist:  Abir Chakroborty, Ashish Chakroborty
• Text:  Niharika Joshi
• City:  Vadodara
• Country:  India
• Did you collaborate on this project?

The brief -  As typologies of cafés become more than just an eatery, and transforming into art galleries, co-working and gathering spaces develop around the world – the design brief of Modernist Coffee was to cleverly unite various concepts. Using the brand’s idea of ‘Spaces, People and Coffee’ to intermingle and flow into each other, the café was to be conceived as a modern crossroads where coffee culture seamlessly merged with art and public life.

The idea -  By taking the client brief forward, and pushing the boundaries of what a “new café typology “means- we evolved fresh ideas about how the café, art and performance spaces could coexist and thrive. We decided to create seamless partitions, infinity water body and green terraces to expand the experience of just having a cup of coffee.

The design intent -  Part of The Crossboundaries rapidly evolving signature style, this café was approached with a fresh outlook on materials, textures and meaning of art. By using materials in their raw, true form, as well as exhibiting the properties of ageing and distress on them, we intended to create a unique experience of savoring coffee. An open bar and service counter was envisioned, to give a free-flowing customer and barista relationship.

  The site -  There are very few places in our growing city which offer us solace, good views and ample space to breathe. The site chosen by the clients for Modernist came with these coveted benefits, as well as 2 beautiful open to sky terraces to let the wind and sun in. We decided to make most use of these spaces, as well as turn the café into an open plan, barrier free layout suitable for art exhibitions and gatherings. What is more comforting than the aroma of coffee wafting through an open space!

The material palette -  In keeping with our design philosophy of experimenting and innovating with a wide material palette, we used metals, wood and dressed plaster to its fullest. With seamless dark micro-crete flooring and exposed brick cladding, the aim was to give a raw, unfinished and edgy look. Sleek metal partitions with clear glass are used, to give a sense of openness. As part of an ongoing quest of art, we created lighting fixtures and sculptures out of jute and fibre- these are displayed around the café.

The highlights -  Necessity creates innovation, and we always look for challenges to innovate! A great example is the precisely calculated bent lights running on a grid. Running across the ceiling and along the beams, an array of bent- GI pipes, grouped equidistantly, and fluidly ending at different lengths. The pipes terminate in a bent curve, with a cylindrical spot-light fixture at its end. The radius of each curve has been carefully calculated and executed in place, to precisely illuminate a spot. Also, apart from designing lights to highlight artwork, some light fixtures themselves have been designed as a work of art! In the central bay, linear lights spanning between beams are uniquely fashioned out of brown medicine bottles and metal sheeting and is named “cyclotron”!

Another unique feature of this café is the furniture selection, which forms a physical catalog of the eclectic furniture brand, Olvvi. Stools, café tables, high chairs and loose furniture – all are part of the furniture brand’s display where it is playground of furniture to buy from within the café itself.

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Costa Coffee: Helping consumers find their closest cup

About Costa Coffee

Founded in London in 1971, Costa Coffee is now the UK’s largest coffee store chain and the world’s second largest, with 4,000+ stores in 31 countries. Its latest digital innovation is ordering via the Costa Coffee and delivery partner apps.

Tell us your challenge. We're here to help.

About Snowdrop Solutions

A Google Cloud Premier Partner, Snowdrop Solutions delivers location intelligence for big brands.

Costa Coffee navigates consumers to their most convenient eat-in, takeaway, drive-thru, partner stores and delivery platforms.

• Ensures click-and-collect requests are made to the correct Costa Coffee store, saving time and costs by preventing mistakes
• Provides accurate information on store opening times and locations, cutting down on waiting time for consumers
• Helps store team members to prepare for demand by combining navigation tools with online ordering

Costa app helps consumers find their nearest Costa location

When you can count the number of stores you have on one hand, it’s easy to list their addresses on a website and show your consumers how to reach them. With more than 4,000 coffee stores spread across 31 countries, Costa Coffee recognized it needed a sophisticated location intelligence solution to intuitively direct its consumers to their nearest Costa Coffee and highlight which services are available where and when.

Since it was founded in 1971, technology has played a crucial role in taking Costa Coffee from a single roastery on London’s Fenchurch Street to a brand found on highstreets, grocery stores, and store cupboards in homes across the world. In 2020, when the coffee store brand wanted to ensure that its consumers were able to continue enjoying their cup of Costa Coffee amidst COVID-19 travel restrictions, the company once again turned to technology to bring new ideas and services to life.

The company wanted to make consumers aware that Costa Express machines remained operating in petrol stations and forecourts up and down the country, even when Costa Coffee stores closed. It also wanted consumers to know that their nearest store offered the facility to order and pay online (and complete a minimal contact collection), and that local stores offered delivery services via partners. Costa Coffee recognized that accurate location data was required to keep consumers informed and safe during an unusual year.

When Covid hit, the company focussed on rolling out more ways to order to more locations. Having used Google Maps Platform in its website and mobile app for years, it knew it could be the solution.

Making it as easy as possible for consumers to get what they need

When Costa Coffee launched its mobile app in 2017, it wanted to provide location intelligence features that would make its consumers’ journeys quicker and easier. When a customer imputed their location in the app, for example, it would pop up the address of their nearest store and its opening hours. But Costa Coffee wanted more. How about an interactive element that gave consumers the option to order online and show up when their order was ready for collection? These ideas would decrease waiting times, which in 2020, due to COVID-19 safety measures, was a matter of security and precaution, in addition to convenience.

To bring these ideas to life, Costa Coffee turned to its long-standing Google Cloud Premier Partner, Snowdrop Solutions . "We decided to leverage more Google Maps Platform capabilities because our developers find it easy to work with, and it supports all the functionalities we need, from routes that assist consumers to our stores to services such as click and collect," explains Gordon Lucas, Global Head of Digital Engineering at Costa Coffee.

"We decided to leverage more Google Maps Platform capabilities because our developers find it easy to work with, and it supports all the functionalities we need, from routes that assist consumers to our stores to services such as click and collect."

With a small web development team based in its UK headquarters, it was also important for Costa Coffee to be able to build in functionality that can be seamlessly rolled out across its multiple territories around the world. To that end, Costa Coffee embedded Google Maps Platform within its mobile app and international website, using the Geocoding API to create visual place markers illustrating Costa Coffee locations on its maps.

To save users time, they also leveraged Place Autocomplete to predict addresses and check their accuracy when consumers are making an online order. "The Places API powers our click-and-serve feature, where baristas bring orders to consumers’ cars. Now consumers can see how long their drive to the nearest service is," explains Lucas.

Relying on accurate location data to deliver services safely during COVID-19

When the pandemic and lockdowns forced stores to adapt in 2020, the new Google Maps Platform solutions employed by Costa Coffee online became even more invaluable for the business and its consumers. "Our Store Locator became crucial during lockdown, when opening times changed and restrictions looked different depending on where stores are based, each complying with their local lockdown measures," explains Lucas. "Having our Google Maps Platform solutions in place then meant that we were always able to show our consumers which stores or drive-thrus near them were open and safely serving great coffee during a time when, more than ever, they sought comfort in their favourite Costa Coffee beverage. That’s why our Store Locator quickly became the most visited page on our website."

"The Places API powers our click-and-serve feature, where baristas bring orders to consumers’ cars. Now consumers can see how long their drive to the nearest service is."

Although not part of the development specification, Google Maps Platform quickly became a vital part of Costa Coffee’s internal COVID-19 hygiene initiative too. While hundreds of its stores were forced to temporarily close, Costa Coffee’s 9,000 Express machines in grocery stores and petrol stations were working overtime when they were some of the few places selling cups of coffee. "Our mobile ordering system lets you find an Express machine, scan your order request, and pick up your drink without touching the screen," says Lucas.

The hands-free order-and-collect system was adapted for standalone stores too, allowing users to find and select a store, place an order, avoid queues, and pay and collect products, speeding up the transaction process and minimizing the risk of transmission between consumers and baristas.

"At the end of the first lockdown, for example, we saw huge consumption numbers on our mapping technology as people were trying to find their nearest Costa Coffee and eager to enjoy the experience of buying a coffee or snack, something that was normal pre-lockdown but had by then become a ‘treat’," says Lucas.

Location intelligence is also used to improve the experience of consumers from when they first order a cappuccino and cake, to when they arrive at a Costa Coffee store to enjoy it.

"Google Maps Platform is now a key part of our digital operations. It helps us to make our communications more relevant to consumers and boost sales by ensuring that consumers always know where and when to get their cup of Costa Coffee."

Bringing consumers around the world closer to Costa Coffee

Costa Coffee has not changed its Mocha Italia Signature Blend in 50 years, but it is continually using the latest technology to improve its distribution, accessibility, and customer service. In its latest development, it is trialling robotic coffee bars in the US, and Google Maps Platform will be integral to raising users' awareness of their whereabouts too.

"Google Maps Platform is now a key part of our digital operations. It helps us to make our communications more relevant to consumers and boost sales by ensuring that consumers always know where and when to get their cup of Costa Coffee," says Lucas. "That’s why Costa Coffee continues to innovate and experiment with Google Maps Platform to ensure that wherever our consumers are in the world, they are never far from a Costa Coffee Americano or classic Latte."

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Opinion Haiti’s plight is a case study in the ‘responsibility to protect’

Civilians at risk need protection, but when is humanitarian intervention justified?

After months of delay, a transitional council for Haiti has picked a president and prime minister. The interim appointments pave the way for deployment of an international security force, led by Kenyan police. Its job is to restore order and retake the capital, Port-au-Prince, from armed criminal gangs that control most of it and have already killed thousands . The ultimate goal is an election for a permanent government.

The mission faces a raft of challenges. Though authorized by the United Nations and funded by the United States, the deployment is unpopular in Kenya, where police have a reputation for human rights abuses. It’s unclear that the planned 1,100-man force is large and capable enough to take on hundreds of heavily armed gangs. Will the Kenyans be expected to disarm them? Or just provide a “static” presence at key buildings and infrastructure?

The Haiti deployment represents a comeback for the “ responsibility to protect .” This is the principle, born two decades ago — amid bloody wars in the Balkans, famine and anarchy in Somalia, and genocide in Rwanda — that the international community can, and should, intervene to save civilian populations in failed states. Since the United Nations General Assembly endorsed “R2P” in 2005, however, it has only been invoked once: the NATO-led military mission in Libya in 2011, which began with the goal of preventing massacres and ended with the toppling of Moammar Gaddafi amid anarchic factional fighting.

The Libya intervention not only went awry; it led China, Russia and nations of the Global South to denounce civilian protection as a pretext for the United States and Europe to engage in self-interested regime change. Yet even staunch proponents of R2P also looked at Libya and argued that it was, in hindsight, a misapplication of the concept. Libya helps explain why, in 2012, President Barack Obama hesitated to enforce his “red line” against the Syrian regime’s atrocities, despite urgings from R2P advocates in his administration. U.S. airstrikes might have toppled the regime — creating a power vacuum that the Islamic State could have exploited.

Haiti’s predicament, however, shows that the problem R2P meant to address remains real and that discarding the concept altogether would be a mistake. It needs to be applied more carefully and consistently. Gareth Evans, a former Australian foreign minister and president of the International Crisis Group, has identified five criteria for doing that.

First, the threat of mass civilian casualties must be serious and imminent. Second, while an intervention can never be free of geopolitical motivations or consequences, its primary goal must be to save civilians. Third, opportunities for diplomatic and economic pressure must be exhausted first. Fourth, the military force used must be sufficient to deal with all threats on the ground. Fifth, and crucially, intervention must be reasonably certain to do more good than harm.

These standards can help the U.S. public sort through its inevitably competing impulses: the decent wish to do something — anything — to stop the suffering and the skeptical concern that a given crisis is too complicated, remote and, for a nation with problems of its own, costly.

Such doubts are understandable regarding Haiti, where the record of interventions is lengthy and mixed — from the Marine Corps’s often-abusive 1915-1934 occupation to the cholera epidemic and accusations of sex trafficking during a 2004-2017 U.N. peacekeeping mission .

Also understandable are questions about selectivity: Why a U.S.-backed mission to Haiti but not, say, Sudan, where a two-year battle between dueling warlords has killed at least 15,000 people , displaced 9 million more, left millions on the brink of famine and led to a likely genocide in Darfur? Or Myanmar, whose military, bent on crushing a popular insurgency, has killed more than 6,000 people in almost three years and displaced 3 million more ?

Mr. Evans’s criteria provide answers. The slaughter in Sudan and Myanmar is clear, but not the chances intervention could do more good than harm. Also, the Haiti mission meets a sixth criterion we would add to Mr. Evans’s list: If intervention is warranted, it is crucial to assemble the broadest possible coalition, including countries from the region. The proposed Haiti mission is backed by a U.N. Security Council resolution and Kenyan police; the Bahamas, Barbados, Benin, Chad and Bangladesh have offered additional personnel. It did not trigger Russian and Chinese vetoes at the U.N., as more geopolitically sensitive missions elsewhere might have.

The main lingering uncertainty relates to Mr. Evans’s fourth criterion: force sufficiency. Gen. Peter Cosgrove, who commanded Australian troops in a humanitarian intervention in East Timor in 1999, memorably attributed his success to telling local militias, “there’s only one military force allowed to posture here, and that’s my force.” If the Haiti operation cannot say the same to that country’s gangs, it could fail. With enough U.S. help, though, the mission could save Haitian lives and breathe much-needed new life into the responsibility to protect.

The Post’s View | About the Editorial Board

Editorials represent the views of The Post as an institution, as determined through discussion among members of the Editorial Board , based in the Opinions section and separate from the newsroom.

Members of the Editorial Board: Opinion Editor David Shipley , Deputy Opinion Editor Charles Lane and Deputy Opinion Editor Stephen Stromberg , as well as writers Mary Duenwald, Shadi Hamid , David E. Hoffman , James Hohmann , Heather Long , Mili Mitra , Eduardo Porter , Keith B. Richburg and Molly Roberts .

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Woman was living inside rooftop grocery store sign with computer and coffee maker for a year

A Family Fare store is shown in Midland, Mich., Thursday, May 9, 2024. Contractors curious about an extension cord on the roof of a Michigan grocery store made a startling discovery: A 34-year-old woman was living inside the business sign, with enough space for a computer, printer and coffee maker, police said. (Dave Clark/Midland Daily News via AP)

A Family Fare store is shown in Midland, Mich., Thursday, May 9, 2024. Contractors curious about an extension cord on the roof of a Michigan grocery store made a startling discovery: A 34-year-old woman was living inside the business sign, with enough space for a computer, printer and coffee maker, police said. (Heather Jordan/Saginaw News via AP)

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Contractors curious about an extension cord on the roof of a Michigan grocery store made a startling discovery: A 34-year-old woman was living inside the business sign, with enough space for a computer, printer and coffee maker, police said.

“She was homeless,” Officer Brennon Warren of the Midland Police Department said Thursday. “It’s a story that makes you scratch your head, just somebody living up in a sign.”

The woman, whose name was not released, told police she had a job elsewhere but had been living inside the Family Fare sign for roughly a year, Warren said. She was found April 23.

Midland, best known as the global home of Dow Inc., is 130 miles (209 kilometers) north of Detroit.

The Family Fare store is in a retail strip with a triangle-shaped sign at the top of the building. The sign structure, probably 5 feet (1.5 meter) wide and 8 feet (2.4 meters) high, has a door and is accessible from the roof, Warren said.

“There was some flooring that was laid down. A mini desk,” he said. “Her clothing. A Keurig coffee maker. A printer and a computer — things you’d have in your home.”

The woman was able to get electricity through a power cord plugged into an outlet on the roof, Warren said.

There was no sign of a ladder. Warren said it’s possible the woman made her way to the roof by climbing up elsewhere behind the store or other retail businesses.

“I honestly don’t know how she was getting up there. She didn’t indicate, either,” he said.

A spokesperson for SpartanNash, the parent company of Family Fare, said store employees responded “with the utmost compassion and professionalism.”

“Ensuring there is ample safe, affordable housing continues to be a widespread issue nationwide that our community needs to partner in solving,” Adrienne Chance said, declining further comment.

Warren said the woman was cooperative and quickly agreed to leave. No charges were pursued.

“We provided her with some information about services in the area,” the officer said. “She apologized and continued on her way. Where she went from there, I don’t know.”

The director of a local nonprofit that provides food and shelter assistance said Midland — which has a population 42,000 — needs more housing for low-income residents.

“From someone who works with the homeless, part of me acknowledges she was really resourceful,” said Saralyn Temple of Midland’s Open Door. “Obviously, we don’t want people resorting to illegal activity to find housing. There are much better options.”

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