Chris Thomas

Did Starbucks' CEO Really Say That?

I disagree with the assessment. In your own words: "If you want a cup of coffee in under 15 minutes, do you go to Starbucks? Me neither. Let's be honest, getting coffee at a Starbucks is quite often a real pain in the ass."

Which leads to the question: why is Starbucks the giant they are? Sure, they have good coffee, but that's not the whole picture. It's the brand. It's a the barista experience. It's being surrounded by jazz music and modern art and people wearing turtleneck sweaters. THAT's what you pay 5 Bucks for a Grande Mocha Frap.

It always kind of puzzled me when people talked about the competition between Starbucks and Dunkin Donuts. Because in my mind, just because both companies offer coffee doesn't mean they're selling the same thing. McDonalds having halfway decent coffee isn't so much a threat to Starbucks, but rather for Dunkin Doughnuts.

McDonalds isn't ritzy. It isn't posh and it's not cool. But it's cheap. McDonalds is fighting over Dunkin' Donuts market share - people who want a quick, cheap breakfast and a good cup of coffee to wake them up. Am I missing something here?