Introduction
Coffee has always been a fast growing industry and while we are all familiar with big chain coffee companies. The rise of independent coffee shops are growing, and fast. People are starting to lean towards these smaller coffee shops and this could mean trouble for the big chain coffee companies. In this article we will be going over how these independent coffee shops are starting to affect the big guys and what this could mean for the coffee industry.
The green coffee giant: what they’re saying
From an article on Insider CFO Scott maw says But what we have acknowledged … is the collective group of independent coffee shops out there, they are doing a lot of what Starbucks has been so good at for so long.”
Now here is where I believe the big green coffee giant is wrong. At the end of the CFO’s statement “they are doing a lot of what Starbucks has been so good at for so long.” Starbucks has never touched third wave coffee or the quality of coffee these independent coffee shops are offering. That’s why most people in the coffee industry say “they’re over roasted beans, and bitter coffee”
Scott Maw also said “It’s that third-place environment, it’s a comfortable place to be, it’s an up-leveled coffee experience,” and “They’re not taking share [from] us but what we know is if we don’t have our service levels right and customers aren’t engaged in the right way, they now have options.”
So what does this mean for the big coffee guys?
Well simply put, Starbucks will never amount to the same quality and customer service as independently owned coffee shops. Why is this? well simply, You can not have that quality of both customer service and quality when the big green coffee company has money saving tactics that overall effect these aspects of their business.
I could very easily see that in the future the big coffee giants could slowly leave the coffee industry as people are caring more and more about ethical practices, employee treatment, and overall business practices. The coffee giant has already been under heat for some of these issues and the world of independent and third wave coffee could very easily take over.
How are coffee giants combating?
Well one brand in particular the big green one if you can catch my drift. They’re responding by investing into more reserves stores and roasters which provide more of an upscale sort of 3rd wave environment. Here is where most people in the coffee industry disagree with that tactic. You should not need to open more reserve stores to provide an upscale coffee experience since your already standing stores don’t offer that.
When a brand or company does not meet expectations of independent coffee shops and coffee snobs, and already cater to a certain demographic of people, you can not expect to now change your demographic that you have build for yourself when the only companies are getting it right are small/independent coffee shops and companies.
The edge that local coffee shops offer is a top concern for the coffee giant. While they are trying to combat this by opening more roasters and reserve stores, the giant coffee company still has worry that they will not be able to compete. and rightfully so.
Independent coffee shops: Why they have an edge
These smaller coffee shops are growing fast and I could see them vary easily taking over the coffee industry. These shops offer great product, better customer service, strong individuality, and typically are more interpersonal than the chains. Most of these shops if not all focus on ethical practices, quality of product, and usually have better staff who are more knowledgeable on the product they re serving. These all combined are hard to compete with and beat as a multi-million dollar coffee chain that tends to not have a great reputation in most of these areas.
Conclusion
At the end of the day anyone who works in the 3rd wave coffee scene, or is a coffee snob never choses Starbucks or give it praise that it has great quality. Independent coffee shops will always be a fan favorite and will always serve that black cup of coffee, or latte with a little extra quality, and warmth. If you have been a big chain coffee drinker I encourage you to check out a few of your local coffee shops and support small businesses.
