Can Starbucks Compete with Third Wave Coffee?

Starbucks brought coffee snobbery to the masses. Those who had never given a second thought to any coffee sipped from a styrofoam cup, could now tell you the many reasons they preferred light or dark roast.

Starbucks, instead of offering a bite from a forbidden fruit, provided a new guilty pleasure from crisp white cups and created coffee connoisseurs out of those who had once been blissfully unaware that they had a choice.

Part of Starbucks’ success has been their longstanding commitment to the quality of their coffee. Howard Schultz, the CEO who helped propel Starbucks’ brand and stock price, said in his departing letter to the company said that they should, “Never stop reaffirming Starbucks’ leadership position in all things coffee.”

Through employee training, investment in high-end Mastrena espresso machines, and clearing out their non-coffee related products like books and CDs, they have kept the focus on the quality of their beverages as a primary brand differentiator.

, since 1987 and their first 11 stores, they built a caffeinated empire of 28,000 worldwide, with 14,000 of those locations in the United States.

With any spectacular rise and exponential brand success, the likelihood of corporate missteps gets larger. And Starbucks has had their woes.

In 2015 they launched a mobile app for ordering ahead of time. It aimed to shorten the lines and expedite orders. Instead, it resulted in a jumble of cranky people waiting for their orders.

Starbucks has been conscious of their products and how they conduct business, but just as they once positioned itself as an alternative to the mainstream, they have become a part of it.

Now consumers, especially in metropolitan cities, have even more refined tastes. They are eschewing Starbucks to attend cuppings, have a single origin preference, and appreciate the art of the pour over.

And to combat competition and appease consumers with sophisticated palettes, they’ve launched the ultra-premium Starbucks Reserve stores to compete with the third wave.

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