Big Coffee Chains Having A Hard Time
There are recent reports that Starbucks has run into rough weather. Its stocks have been witnessing a decline and so are the revenues. Our very own Cafe Coffee Day ( CCD ) has been witnessing debt issues and a bankruptcy scare. Costa Coffee, the British Coffee chain has shown some traction, but there is still nothing spectacular or out of the ordinary growth. The coffee scenario, on a holistic view, does not seem to be all that encouraging, but still, new brands are coming up and new chains are being set up, more locally than ever. There is no dearth of investors and money keeps flowing into coffee, despite a wobbling scenario.
READ The Contact Lens With A Cinnamon Bun
The Good Old Tea
Tea is deeply interwoven with our lives. It is more of a necessity in most households in India for sure. The day begins with a cup of tea and as the day progresses, tea keeps pouring in. Drinking tea is a way of life. It keeps one going. Tea reduces stress and acts as an anti-depressant and without doubt, it is nothing short of a performance-enhancing easy seller. Tea is also the most freely available and lightest on-the-pocket beverage. You need not go to fancy outlets and splurge all that cash to have a cuppa. There is so much ease with Tea, bundled with so many benefits. However, the fact is, Coffee is still the cousin that gets all the eyeballs, all the pampering, and of course, all the cash.
Coffee – The Relationship Builder
Coffee is a meeting point, a relationship builder. Haven’t you heard of ‘ Let’s meet over a cup of coffee ‘? Coffee chains across the globe, big or small have used this phrase to build their business and put coffee on an exalted status. Swanky outlets, cool environs, and a status symbol to boot, has led coffee to lead a charming life. Starbucks, in particular, has reveled in this, all over the world. Tea, unfortunately never got this status and hence has in a way accepted its position.
Coffee vs Tea: The Smart Consumer
Human beings, however, are a fickle breed and are turning much smarter these days. Though coffee is still the go-to beverage for meet-ups and friendships and the polishing of the status symbol, the mushrooming of slightly cheaper outlets has led to a major shift in large markets like India and China. Expensive brands are facing the heat and though they are trying to bring their prices a shade lower, their massive overheads and business positioning, are a major obstacle in matching price bands of cheaper, local brands. No wonder, the investments are flowing in these local outlets, particularly in Tier 2 cities and below.
READ My Name On my Coffee
Coffee vs Tea: The Moment of Truth
A few tea lovers did try to uplift the Tea brand through glitzy outlets to match coffee, but soon they realized the pitfalls. The unglamorous tea was most suited in the comforts of homes and no sooner the outlets appeared, they were shut down. Even Chayos selling coffee has to be the moment of truth.
Read Quick, Read Better @ rizkhan.in
SEO Tags: Coffee industry decline, Starbucks stock decline, Cafe Coffee Day bankruptcy, Costa Coffee growth, tea vs coffee, tea popularity in India, local coffee brands, coffee culture, affordable coffee chains, coffee as a status symbol, coffee relationships, smart consumers, tea outlets failure, Chayos coffee strategy, coffee vs tea