Prices Fall as Specialty Coffee Wars Heat Up

Seattle’s Best Coffee, a Starbucks Corp. subsidiary, made a splash recently when it was publicly announced that the premium coffee chain would start franchising on the Mainland (48 continental states). Today’s Honolulu Advertiser carries an AP article that shows that there are several significant trends affecting the outlook for Seattle’s and other premium coffee outlets. Some of the trends are the fast-sinking economy, which is causing a significant rise in consumer price consciousness, which in turn is resulting in more “attractive” prices. The percentage of adults drinking premium coffee has risen sixfold since 1995, resulting in formidable competition as more companies get into the premium coffee business—such as McDonald’s, known to be no slouch when it comes to grabbing market share. At least some former Starbucks Coffee drinkers find the "attractively priced" McDonald's gourmet coffee to be more delicious. While Seattle’s Best may have a different tasting coffee than Starbucks (some say mellower), the major trends affect not only both, but all chains involved in the specialty coffee wars. Another consideration is that the Seattle’s Best franchise is run by two different companies. Focus Brands holds the franchise rights in eleven countries, Hawaii and U.S. military bases, meaning quality control, products, etc., is run by two different companies. A misstep or different products in one Seattle's Coffee chain that affects consumer perception will impact the other. Read The Honolulu Advertiser article