Difference between Costa, Starbucks and Cafe Nero

Yucca

Yucca

Yucca

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Afternoon all

As part of his business course at school my cousin has chosen to do a SWAT analysis on Costa and look specifically at the differences between Costa and his main competitors such as Starbucks and Cafe Nero.

As I come from a hospitality background he's asked me to help. But my experience is is restaurants not coffee shops.

There are naturally small pricing differences and the taste of the coffee each brand serves is obviously different but no other obvious points jump to mind. But then I very rarely drink in coffee shops!

If any regulars here can give me some pointers that would be appreciated!
 
All I can offer is that I prefer the taste of Costa, and that they are all hideously overpriced :D
 
Starbucks: Foreign tax dodgers, will not buy unless desperate;
Costa: Good British company (owned by Whitbreads I think). Their machines in WH Smiths at service stations are awesome;
Cafe Nero: No idea, never heard of them.
 
Costa have a bigger network of point of sale venting machines such as in petrol stations etc and also have cafes inside other businesses such as Tesco

Starbucks have drive thrus.

Nero is just a bricks and mortar cafe.

I can't say for Nero, but Costa and Starbucks both have loyalty point systems.

The rest is obvious really. Marketing, colour schemes and design from a shop point of view as well as the products on offer which are all similar.
 
You need to look deeper than the obvious.

Consider if they cater to different demographics.
Consider their placement, i.e. high street, service stations, within other stores such as Next
Consider their pricing policies
Consider their political stance on fair trade etc.
Consider their ownership
Consider their store layout, consider the decor. Nothing is by chance.
Consider the service, again nothing is by chance. Each of these coffee shops are notably different in how they interact with clientele.

Here is food for thought - why did Starbucks become so popular? Is it not just a shop that sells coffee? No - they have created a brand which welcomes young professionals to come and sit, work, eat and drink.
 
Starbucks has a higher MacBook to customer ratio.

oHUTCHYo said:
Here is food for thought - why did Starbucks become so popular? Is it not just a shop that sells coffee? No - they have created a brand which welcomes young professionals to come and sit, work, eat and drink.
Click to expand...

Selling the hipster dream.
 
Stretch said:
Starbucks has a higher MacBook to customer ratio.



Selling the hipster dream.
Click to expand...
It really is. So then that would be a threat/weakness, in that maintaining that culture may turn off other demographics. I myself prefer Costa as dislike the image of Starbucks.
 
Cafe Nero coffee tastes better and always has. Starbucks do the best "seasonal" variety type drinks. Costa I've had too many bad experiences with. With their vending machine things at service stations and petrol stations, I once saw inside one. That put me off for life. I don't think all of them are well maintained.
I see the most Costas, closely followed by Starbucks. Both are pretty much everywhere. Nero I see slightly less and I think people don't know it or use it as much, consequently I find them to often be quieter and a nicer environment to drink in.

And yes, they are all highly over priced.
 
Starbucks isn't really coffee. (Let's be honest, it's Americanised sugary crap) It be like drinking a cup full of boiled sugar, with a coffee taste additive thrown in.


Costa is closer to a real cup of coffee tbh.
 
SWOT = Strengths, Weaknesses, Opportunities, Threats. No ideat what SWAT is ;)

Consider the demographic each brand appeals to, the atmosphere within each branch, availability (petrol stations, high street, airport, motorway service station), reward schemes, peripheral item pricing.

A good local independent can pop up pretty quickly and offer a refreshing alternative. Lots of other eateries/sandwich shops also offer similar drinks ranges.
 
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Yucca said:
As part of his business course at school my cousin has chosen to do a SWAT analysis on Costa and look specifically at the differences between Costa and his main competitors such as Starbucks and Cafe Nero.
Click to expand...

Has he got shareholder prospectuses? (Of parent companies if necessary.) Then he should start doing some legwork and speak to local managers. He'll probably need a letter of reference from his school. If he's an adult and this is a serious business course, he might like to up the chain a little. Look up the list of directors and find out if any live nearby and approach them directly. In all cases, preparation is key.

You can bet your boots they've already done SWOT analyses on their competitors.
 
oHUTCHYo said:
It really is. So then that would be a threat/weakness, in that maintaining that culture may turn off other demographics. I myself prefer Costa as dislike the image of Starbucks.
Click to expand...
The one near me is perpetually filled with 16 year old kids and boy racers because it is open 24 hours :(
 
Agree with all comments regarding the coffee itself, but thats only a small consideration. Look at Apple, Beats etc. The product quality isn't necessarily the be all and end all.

OP, have your friend consider the 7Ps, work through each and it will help build a SWOT.

PRODUCT
PLACE
PRICE
PROMOTION
PEOPLE
PROCESSES
PHYSICAL EVIDENCE
 
oHUTCHYo said:
Agree with all comments regarding the coffee itself, but thats only a small consideration. Look at Apple, Beats etc. The product quality isn't necessarily the be all and end all.

OP, have your friend consider the 7Ps, work through each and it will help build a SWOT.

PRODUCT
PLACE
PRICE
PROMOTION
PEOPLE
PROCESSES
PHYSICAL EVIDENCE
Click to expand...

I think you're missing PHILOSOPHY. (Ethics, working conditions, supplier relations, sustainability, community engagement).
 
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