Starbucks was the first coffeehouse chain that introduced the Italian cultural movement around caffeine for the first time in the rest of Europe and America. This assured the company a long-lasting supremacy into its flavorful industry. However, capitalism opened the doors of opportunity to other such businesses as well. As of recently, the reign of Starbucks might dwindle in the face of its main rival, Dunkin’ Donuts.
Dunkin’ Donuts Stocks Are at All-Time High
Wall Street looks like it developed a crush for the donut company and coffeehouse chain, Dunkin’ Donuts. The trading stock of the organization hit an all-time high. Even though the forecasts predicted a steady future, the company was lifted up by major earnings and lots of sales. As a consequence, the shares of Dunkin’ Brands, which is the parent company of Dunkin’, rose by 10% this year. Over the past 12 months, the value of the company increased by 25%.
By comparison, Starbucks recorded flat business numbers. To make things worse, the coffeehouse behemoth has even fallen behind the miraculous evolution of Dunkin’ in the year of 2016. The reason behind this surprising regression is Starbuck’s push towards technology. The company is experiencing some issues with its mobile app. under ideal circumstances, clients can order and pay for their favorite hot beverage in advance through their smartphones. By the time they arrive at the nearest Starbucks, their dose of caffeine is waiting for them in perfect state.
Starbucks Reinforces its Coffeehouse Chain with Two Extra Employees
However, the problem is that everybody wants to skip the waiting line. This is why baristas usually receive too many mobile orders to handle in due time. Thus, the undesired cue took hold of the coffeehouse chain once again. The majority of mobile requests appear at peak hours. Moreover, customers who don’t use the Starbucks app have higher chances of waiting a longer time than others.
On Wednesday, Kevin Johnson stated during the annual shareholder event that the company is already planning to take care of the situation. The organization opened two new positions at each of its busiest coffee shops. The new employees will be in charge of handling the mobile ordering only.
While being taken aback by too many orders is a good issue for any business, Starbucks has to deal at the same time with an aggressive competition. Besides Dunkin’ Donuts, there are also Caribou, Tim Hortons, Peet’s, and McDonald’s who are all trying to be proclaimed the king of coffee.
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