Most people make the mistake of thinking that Starbucks sells coffee, and wonder why Starbucks is so popular when the coffee is so overpriced and not even very good.
The answer is: The primary product of Starbucks is not coffee. It is the entire experience. Coffee is just a secondary product. Starbucks charges you for the experience and for the various services it provides.
I am a frequent visitor at Starbucks. I go there not to drink coffee, but to work in peace and to meet friends. One of the main things I love about Starbucks is that I can sit there for hours working, and no one will ask me to get out.
To really understand the concept of Starbucks, we need to understand how the concept came about.
Starbucks was founded in 1986 to sell espresso. It was just a normal coffee chain with around 6 stores selling coffee – nothing so great or exceptional about the stores.
Howard Schultz, who used to work at Starbucks, once took a trip to Milan. There, he observed that coffee shops were not a place to order coffee, but rather a place where people could hang out and meet each other.
Howard loved this idea. But when he expressed this idea to the owners of Starbucks, he was shot down. Not willing to give up, Howard left Starbucks to start his own coffee company called Il Giornale, where he implemented the concept of ‘experience’ as a service. The idea gained wide popularity. Eventually, Howard bought Starbucks and re-branded the entire chain into the Starbucks that we know today.
The primary aim of Starbucks is to become a third place in the daily lives of its guests – after home and office. If someone wants to work or hang out with friends, they can either do that at their home, office or at Starbucks.
People don’t go to Starbucks just for the coffee. They go there for the experience.
Let’s get it straight: “You don’t LOVE Starbucks. You don’t hate it either. It’s just that you are well aware of the fact that there are plenty of other options out there that offer just as good coffee for a fraction of that price.
In my opinion, Starbucks is ridiculously overpriced. The more you add to hide the disgusting coffee flavor the more it costs you. But have you wondered why is Starbucks still thriving globally?
The answer is simple- Their main USP is not the coffee.
It is the environment and the amenities provided to it’s customers.
I have been to Starbucks just a couple of times in my life. Not to have the overburnt coffee or prick my pocket, but to enjoy the experience it provides.
Starbucks now has a policy that states they cannot remove someone from the store even if they are not placing an order.
So take advantage of the increased productivity it offers you and head over to Starbucks.