Why is Starbucks so successful? -eight things Starbucks won't tell you.

Introduction: MarketWatch reporter CHARLES PASSY (61.99,0.53,0.86%) reveals the top ten secrets of Starbucks (61.99,0.53,0.86%), points out the reasons for their success, existing problems, and gives some advice to consumers.

The following is the full text of Percy's commentary:

1. Many coffee fans don't like our coffee.

With more than 20, 000 stores in 65 countries around the world, SBUX has redefined the coffee and cafe experience. Founded in Seattle in 1971, the company is famous for bringing high-end Javanese coffee to the public-in terms of quality, Javanese coffee is indeed superior to what you might enjoy in a restaurant on your doorstep.

Starbucks has nurtured a whole generation of coffee drinkers who are willing to pay $2 instead of 99 cents for a cup without blinking an eye. This is largely because Starbucks has succeeded in making its storefront a comfortable place to go outside the home and office (in fact, many people call their storefront a "third place"). And Starbucks' corporate philosophy of social responsibility is also comfortable (here, even hourly workers enjoy benefits).

Their strategy is really effective, even in today's increasingly competitive coffee market can support their own day. In fiscal year 2013, Starbucks generated nearly $15 billion in revenue, up 12% from the previous fiscal year. Starbucks shares have risen more than 700% since 2009.

But despite Starbucks' success, they still have a lot of opponents, especially when it comes to their core product, coffee. For a long time, there have been complaints about the rough quality and overroasting of their Java coffee. Moreover, Consumer Reports shows that some of their products perform poorly in the trial. The Bold Italic, an online magazine, found that in a blindfolded taste test in 2013, Starbucks' medium roasted homemade coffee (Medium Roast House Blend) fell behind among the six products, not even Folgers, which is mainly sold in supermarkets.

It's not hard to imagine that Starbucks has another explanation for this. A spokesman for the company stressed that "some people prefer something light, while others prefer heavy flavors." in the end, they said that the company is working hard to satisfy customers of a variety of tastes. In 2012, they launched a series of gold baking (Blonde Roast) products, which were advertised as "soft, soft, slightly sour and round". In the same year, they began to promote so-called baking chromatography (Roast Spectrum), in which the customer chooses the roasting degree of the coffee.

two。 Our pumpkin spice latte (Pumpkin Spice Latte) does not contain pumpkin and is chemically mixed.

If you want to pick a drink as a symbol of Starbucks, it should be pumpkin spice latte, a favorite coffee of autumn. The product was launched in 2003 and has sold more than 200 million cups so far, according to their own data. This product is so well known that people often don't bother to say their full name and refer to it with the acronym PSL.

However, some authors who pay more attention to nutrition, as well as some medical professionals, complain that pumpkin spice lattes-as well as other Starbucks products-contain too many ingredients that are not good for the body, or even harmful. Food blogger Vani Hari (Food Babe) is particularly critical of the pumpkin spice latte, pointing out that the coffee contains sulfite ammonia caramel color (Caramel Color Class IV), which leads to the production of a compound called 4-methylimidazole (4-MEI), which is considered a carcinogen by the International Agency for Research on Cancer (IARC). Haley also accused the taste of pumpkin spice latte is completely artificial blending, is the product of "large amounts" of sugar, there is "no real pumpkin".

Mark Smith, a massage therapist in Osceola, Indiana, runs an online store called Good Living Warehouse, which sells nutrition and so on. He denounced that Starbucks coffee is largely non-organic, comes from farms and has been sprayed many times with pesticides. "No pesticide is safe."

On the Starbucks side, they still pack and brew coffee as if nothing had happened, saying there is nothing to worry about safety. A spokesman for the company said Starbucks was "taking active action to phase out caramel coloring," but stressed that the current dose of coloring in Starbucks drinks is "safe for consumers." (although Starbucks didn't say it itself this time, it should be pointed out that they have lashed out at Harry's research on more than one occasion.) As for the pumpkin spice latte, the spokesman had to admit that the product "is undoubtedly called for by the autumn pumpkin pie flavor."... But no real pumpkins.

3. We have a secret menu.

On the Starbucks menu, consumers can see a large number of different beverage options, including brewed coffee, espresso and a variety of iced products. But obviously, that's not enough. Others are only on their "secret menu". These drinks are not publicly listed at Starbucks, but baristas can make them with the ingredients on hand at any time. For example, using the standard strawberry cream Frappuccino on the menu, plus some vanilla extract, some raspberry syrup, and other things, you can concoct a cup of fruity Crystal Frappuccino that is not on the menu.

According to a Starbucks Secret menu website that has nothing to do with Starbucks' website, the key here is that consumers must know the recipe themselves, because not all baristas are familiar with every secret drink. Of course, needless to say, prices naturally rise when other ingredients are added.

Another secret is that you can order a "short cup", or 8 ounces of coffee, while on the formal menu, the smallest "tall cup" has 12 ounces.

Howard Schultz, the chief executive, acknowledged the existence of such a "secret menu", saying he was "surprised by the variety of demands of our customers". In fact, a Starbucks spokesman said that at Starbucks, there are enough different elements to mix up "more than 170000" drinks.

4. We like big (maybe too big)

Starbucks generates 26% of its revenue from products other than drinks. Even inside the drink, a considerable portion of the revenue comes from outside the coffee. They removed the word "coffee" from their LOGO in 2011, and since then they have acquired tea company Teavana, juice company Evolution Fresh, and the La Boulange Cafe & Bakery brand. In fact, before that, their products had already covered a wide range of products, from music to soda.

Needless to say, Starbucks is by no means the first company to step out of its best market. However, some investment and retail analysts have expressed concern about their expansion, pointing out that this could eventually cause a number of problems for Starbucks stores, such as extending customer ordering times and making it more difficult for employees to grasp.

On the Starbucks side, they seem to be complacent about their strategy of surpassing coffee. In a recent company annual report, Schultz wrote: "We must carefully expand our products and expertise into new channels, brands and markets while ensuring the integrity of our core business. Only in this way can sustainable growth be ensured." A Starbucks spokesman stressed that their strategy has paid off, with same-store sales growing by at least 5% for 18 consecutive quarters.

5. We have to bear the burden of failure.

Needless to say, Starbucks has launched a lot of successful products like pumpkin spice lattes. But there are times when they fire dumb guns. For example, Mazagran-- Schultz, a canned coffee-cola blend, calls it "a niche product"-as an example, and Chantico, a chocolate "drinking dessert" that is not much different from hot chocolate ubiquitous in Europe, and Sorbetto, a cold drink trying to open up the market for yogurt lovers.

Of course, unless consumers are particularly fond of a drink that is no longer sold, the failure of the product does not have much impact on them, but the impact on the company's profits is real.

Starbucks' explanation is that the reason for these failures is that the company is always looking forward to the next big event. The spokesman said: "We have not stopped trying and launching new products almost all the time, and we will continue to listen to the needs of consumers."

6. Our employees are constantly in friction with the company.

Starbucks has long been praised for its labor practices and has long been locked in Fortune's top 100 employers list (No. 94 in 2013). But in fact, the relationship between Starbucks and its employees has run into a lot of trouble in recent years.

In 2013, Starbucks had to spend $3 million to settle a class action lawsuit filed by employees who accused the company of canceling their shift breaks. (the spokesman said that Starbucks' employment practice has always complied with relevant laws and regulations, and that "the two sides reached a settlement to avoid risks and variables in the judicial process.") Recently, Starbucks has come under fire again for failing to inform employees of their work schedules early enough, making it difficult for them to plan for childcare, school and other things.

Starbucks argues that it sincerely treats its employees as "partners", stressing that they offer a wide range of benefits, including health insurance, company shares and a half-yearly promotion opportunity as long as they are qualified, which "many companies do not have". As for the issue of schedule notification, your company has announced that they have changed their methods, and the specific working hours will be notified at least one week in advance.

7. The pressure of our competition is increasing.

In many ways, Starbucks looks like a McDonald's on a planet without Burger King (113.91, 0.61, 0.54%), in other words, they don't have a really threatening competitor here in high-end Java coffee. However, this situation may also change. In recent years, the so-called "third coffee wave" has sprung up, with a series of high-end stores emphasizing coffee beans from special areas ("harvested like wine grapes," in the words of one report), as well as specialized baking techniques. Major players in this market include Intelligentsia Coffee in Chicago, Stumptown Coffee Roasters in Portland, Oregon, and Blue Bottle Coffee in Oakland, California.

Andrew Hetzel, a coffee industry expert in Hawaii who advises many companies, commented: "We are seeing the coffee market maturing. Now there is room for players of different quality classes to exist. "

In fact, Starbucks has joined the trend to some extent, with plans to open at least 100 "collection" stores over the next five years to emphasize its higher-end Java coffee. They are also testing the concept of small convenience stores, which seem to be responding to pressure from fast-food chains such as McDonald's [Weibo], which are also increasingly focused on the coffee business.

At present, Starbucks may have another advantage over its third wave rivals: their prices-in some cases, the price of a cup of espresso can easily be about 25% lower, despite the fact that Starbucks itself is often accused of overpricing its products.

8. Our calorie number is also a "super cup".

Many kinds of star cappuccinos, 20-ounce oversized cups, have more than 400 calories, and double chocolate star cappuccinos (Double Chocolaty Chip Frappuccino) have broken through the 500-calorie barrier. This means that if you want a frosted lemon pound cake (470 calories) and a casual cup of coffee, you will have nearly a thousand calories.

Comparison can make us understand better. You want a Big Mac and a large Coca-Cola (42.43,-0.68,-1.58%) at McDonald's, which is 810 calories. According to experts from the United States Department of Agriculture, adults between the ages of 31 and 50 need to eat about 1800 to 2200 calories a day.

A spokesman for Starbucks said the company is committed to "presenting all the ingredients to our consumers transparently". They listed the calorie numbers of all foods and drinks on the menu on the website, and the site also had a special list of "delicious drinks under 200 calories."

9. We are winning the caffeine contest.

Many people drink coffee to get caffeine, and in some Starbucks drinks, they will consume enough caffeine to wake up the sleeping person.

In 2012, the Center for Science in the Public interest (Center for Science in the Public Interest), a nonprofit focused on nutrition, examined a number of medium-sized coffee drinks and found that Starbucks drinks had the highest caffeine content, with an average of 330mg per cup, especially their Pike Place roasted coffee. By contrast, the average caffeine content in the same Java coffee is 178 milligrams per cup, compared with 133 milligrams at McDonald's.

So, some Java coffee addicts will ask, what's the big deal? The center pointed out at the time that excessive caffeine intake can lead to insomnia, affect calcium metabolism and cause other health problems. The medical profession does not have a definite opinion on what constitutes excessive intake, but fortunately, most people believe that the upper limit must be more than 330 mg.

Like calories, Starbucks lists the caffeine content of different drinks on its website.

10. We may not necessarily do better than you.

What Starbucks gives you is something you can't do at home, right? The answer is that apart from the particularly complex espresso, nothing else. David Rosengarten, a former food show host and recipe writer, proudly said: "I make a good hand of coffee every day."

Rosengarten and other experts say that as long as you strictly follow a few simple steps, you can also do it-choose the coffee beans that have just been roasted in the last few days and don't buy too much. Rosenberg stressed that after eight days of roasting, there is no guarantee of quality. Grind up the coffee beans with the kitchen grinder. Use a coffee machine that can cook to a higher temperature (about 93 degrees Celsius)-Technivorm has many products to choose from-and it can help you with all the work that follows. You can even flush it with a kettle hand.

What about the cost? If you choose premium coffee (for example, $10 to $15 per pound, about 60 or more cups according to Starbucks standards), drink two cups a day for no more than $5 a week, or $260 a year. It costs about $650 to buy the best grinder and coffee maker. Plus milk, filter seven, seven, 88, become their own barista, the first year's investment is about 1000 US dollars. Needless to say, those machines can be used for many years, and there will be no cost next year, not to mention that if you are not so strict with the machine, you can save hundreds of dollars.

On the contrary, if you go to Starbucks and drink two $2 cups of coffee a day, you will spend more than $1400 a year, not counting the fact that you won't move your index finger and have a snack.

(it's just that espresso is a little more troublesome, experts say, and a top-of-the-line machine costs at least $5000 to meet the standards of a coffee shop.)

Of course, no matter how many people choose to make coffee in their own homes, Starbucks' business will continue. After all, they also sell packaged coffee and coffee makers.

Source: Sina Finance