How to Combat the Starbucks Structural Advantage
Learn about Starbucks' structural advantage in the coffee industry and how to go head-to-head with corporate coffee.
sam-bond
Jul 28, 2021
Starbucks has built structural advantages that make it challenging for independent coffee shops to compete. But understanding these advantages is the first step to overcoming them.
The Starbucks Advantage
Starbucks has invested billions in mobile technology, loyalty programs, and operational efficiency. Their app has over 30 million active users, and mobile orders account for a significant portion of their sales.
How Independents Can Compete
The good news? Independent coffee shops have advantages too:
- Authentic Community Connection - You know your customers by name
- Quality Over Quantity - You can focus on craft and quality
- Flexibility - You can adapt quickly to local preferences
- Story - Your unique story resonates with customers who want to support local
Technology Levels the Playing Field
With joe, independent coffee shops get the same mobile ordering and loyalty capabilities as Starbucks—without the corporate overhead. You can offer the convenience customers expect while maintaining what makes you special.
The structural advantage doesn't have to belong to corporate coffee. With the right tools and strategy, independent shops can thrive.