Starbucks Competitors & Alternatives

Starbucks opened its first store in Seattle in 1971; it owns 33,669 locations in 83 countries. Starbucks’ revenues far outpace those of rivals such as Dunkin’ Donuts and McCafé.

Starbuck Corporation is an American coffee company that operates on a global scale. It was founded in 1971. 

According to the most recent available data, Starbucks had an average of 240,000 employees globally.

The audit showed $12.5 billion and a net operating income of 2.80 billion dollars. 

Starbucks is regarded as a “second wave coffee” symbol for its superior cafeteria coffee, excellent customer service, and the most delicious espresso.

The expansion strategy implemented by Schultz resulted in the opening of 165 stores in that country. 

The company opened more than 1,000 stores during its IPO in 1992, some in Japan and Singapore. A year later, it employed more than 2,000 people.

The multinational corporation now operates 28,000 retail outlets in 76 countries. The company leads the U.S. coffee market with a 39.8% share. 

A market capitalization of $44.5 billion places it behind McDonald’s as the second most valuable fast food brand globally.

The battle for the top spot as the world’s coffee king has been going on for some years between Starbucks and its competitors, Dunkin’ Donuts and McDonald’s.

A company that began with just one location about 50 years ago has experienced tremendous success and growth since then. 

The company added 644 new outlets in the fourth quarter of 2018, bringing more than 30,000.

The company’s marketing strategy matches the “go-to coffee spot” concept, as Starbucks is on virtually every corner and is used for both works and socializing.

Starbucks has evolved from its humble roots as a Seattle coffee roaster to become a place where customers can recharge their batteries on the way to and from work.

Recently, the company has made significant investments in its brick-and-mortar locations, including expanded food offerings, remodeled restaurants, and improved reward programs, among other things. The earnings for the fourth quarter of 2018 show that the company’s efforts are paying off.

Starbucks’ stock soared on November 2, 2018, after delivering an impressive earnings report.

The company posted revenues of $6.3 billion in the third quarter of 2018, compared to $5.7 billion in the same time as the previous year. 

Starbucks’ growth appears to have no end in sight, so here’s a look at how the firm compares versus its competition.

On the other hand, Starbucks offers a wide variety of goods and services, which has created many competitors for it. 

Who Is the Biggest Competitor of Starbucks?

Dunkin’ Donuts and McCafé are among Starbucks’ most significant competitors, though both will trail Starbucks in market share by 2023.

Other major competitors of Starbucks are Tim Hortons, Folgers, Cafe Nero, Costa Coffee, and Maxwell House.

The rivalry also comes from locally owned businesses, such as Peet’s Coffee and neighborhood coffee shops in some areas.

If you’re curious about Starbucks’ competitors, including Dunkin’ Donuts, McCafe, and other similar companies, continue reading for the more useful information!

Starbucks Competitors

The company’s strategy is based on satisfying the wants and needs of customers while also increasing the number of menu items and shop locations available. 

Starbucks also owns several subsidiaries that sell similar or identical goods. 

These are just a few of the many options available right now, including Ethos Water, Evolution Fresh, Seattle’s Best Coffee, La Boulange Bakery, and Teavana. 

This strategy aims to improve customer service, grow the customer base, and attract customers away from competitors.

Compared to 2019, Starbucks yearly sales were $26.51 billion, or 11.28 percent lower.

The company sells whole beans, ground, and instant coffee, among other things. Regardless of the industry, Starbucks faces several rivals.

There are many companies that compete with Starbucks. The market is dominated by large corporations that can influence the market and maintain a competitive edge. 

Starbucks competes with fierce rivals in the vast majority of the markets in which it operates. 

These rivals are also available to customers who wish to purchase a product from a different manufacturer.

Some of them compete directly, while others do so in an indirect manner. The following are the most effective Starbucks Competitors and substitutes.

Top Starbucks Competitors & Alternatives

1.Costa Coffee1971UKVisit Website
2.Dunkin Donuts1950Massachusetts, USVisit Website
3.McCafe2003Illinois, United StatesVisit Website
4.Café Coffee Day1996Bengaluru, IndiaVisit Website
5.Tim HortonsMay 17, 1964Oakville, CanadaVisit Website
6.Lavazza1895Piedmont, ItalyVisit Website
7.Peet’s CoffeeApril 1, 1966Emeryville, CAVisit Website
8.Kentucky Fried ChickenSeptember 24, 1952Louisville, KYVisit Website
9.Dilmah1988Peliyagoda, Sri LankaVisit Website
10.The Republic of Tea1992Novato, CAVisit Website
11.Folgers1904San Francisco, CaliforniaVisit Website
12.Tazo1994Kent, WAVisit Website

1. Costa Coffee

Costa Coffee, founded in 1971 by the Costa brothers, is the world’s second-largest coffeehouse chain, after Starbucks, with 3,800 locations worldwide. The company employed 18,400 people last year and generated $ 1.7 billion in revenue.

Starbucks Competitor Costa Coffee is the only one selling and promoting nothing but its brand of coffee. All of Starbucks’ rivals have a diverse range of goods to choose from.

Coca-Cola paid roughly $4.9 billion to Whitbread in January 2019 to buy Costa Coffee. Costa’s 2020 net sales will be reduced by 19 percent because of store closures, but that’s still higher than the reductions suffered by competitors.

Costa Coffee was owned by Whitbread from 1995 until Coca-Cola purchased it.9 billion ($5.1 billion) in 2018.

It has declared ambitions to expand aggressively into the Chinese market, intending to open 1,200 additional locations there.

This corporation wants to create as many coffee shops as possible; thus, it advertises with the tagline “a coffee for every mile.”

Costa Coffee has also developed new products, such as canned coffee, which comes in a version with less sugar and more caffeine for its three most popular beverage lines (latte, caramel, and black American).

2. Dunkin Donuts

Dunkin’ Donuts is a well-known brand in the United States. Dunkin Donuts is the eighth largest chain of fast-food restaurants worldwide, behind Starbucks.

The company employs more than 18,000 employees worldwide and operates in 33 countries due to Bill Rosenberg’s initial success in Quincy, Massachusetts.

Dunkin’ Donuts was founded in 1950. It is a chain of coffee shops and donut shops. The company has grown rapidly and now has over 11,500 locations in 35 countries around the world.

This company is widely known for its baked goods, hot drinks, iced drinks, frozen drinks, sandwiches, and soft drinks.

Dunkin’ makes 8% of its donuts, 65% of its drinks, and 27% of its other food products. The company’s presence in 35 nations speaks for itself when it comes to success stories.

In the United States, Dunkin Donuts has roughly 8,500 locations compared to Starbucks 15,000+. 

The yearly revenue of Dunkin Donuts is less than $1.5 billion, while the annual income of Starbucks is $23 billion.

3. McDonald’s McCafe

McCafe is rapidly emerging as a serious competitor to Starbucks. McCafé was established in 1993 in Melbourne, Australia, as a McDonalds affiliate. 

The company sells a wide range of high-end espresso-based drinks in the United States and around the world.

This coffee shop offers more than just coffee; it also serves food and other drinks. A true reflection of espresso coffees, it was established in Australia in 1993.

There are a large number of locations throughout the world. This coffeehouse is a direct competitor of Starbucks, which has expanded its drinks menu beyond coffee to include smoothies such as Strawberry Banana and Mango Pineapple.

Starbucks, second-largest market after the United States, will have over 4000 McCafé coffee stores by 2023. In both markets, it competes with Starbucks for customers.

It was one of the top three coffee sellers in 2015, selling over $1.4 billion worth of coffee from just over 4,500 locations.

The coffee shop has recently upgraded the equipment, so they expect to see better performance.

McCafe invested in new equipment to keep the quality of their coffee consistent. It currently holds the top spot in both New Zealand and Australia in terms of size.

4. Café Coffee Day

Cafe Coffee Day Enterprises’ subsidiary chain in India, Café Coffee Day, is a pioneer in the industry.

Café Coffee Day became India’s largest coffee chain and expanded into Africa, Europe, and Asia.

Starbucks Competitors

VG Siddhartha began as a small business with one store in 1993 and now has 1722 locations spread across 200 cities in 20 countries. It made $ 131 million in revenue in 2017.

The company is known for its vertical cost reduction as it owns Arabica coffee plantations and manufactures furniture and coffee equipment for its retail stores.

The brand has kept its prices low since it is popular with Indian students and youth.

First, it introduced a new logo that showcased the chain as a “place to chat,” which led to an interior makeover and the addition of lounges.

In addition to a wide choice of drinks, its operation is centered on company-owned locations where it sells food and beverages such as cold coffee and smoothies. It also sells coffee that it roasts and roasts itself.

5. Tim Hortons

Tim Hortons is a well-known coffee and donut chain in Canada and one of the largest multinationals in the fast-food industry. It has 4,600 restaurants around the world, including the United States.

You can choose from a wide range of premium beverages on the menu, including teas, latte, and cappuccino. Additionally, it serves freshly prepared foods such as bread, muffins, paninis, and soup.

The first franchise was opened in Hamilton, Ontario, in 1964. It has spread across Canada, the United States, and throughout the world since then.

The Tim Hortons coffee shop chain, was founded by Tim Horton, a professional ice hockey player, and his business partner Jim Charade.

It now has over 4,800 locations, employs 6,200 people, and generated $ 3,29 billion in revenue in 2018.

The corporation will gift nearly $8 million in coffee and hot beverages to customers in Canada this holiday season.

Despite being part of a Brazilian conglomerate, Restaurant Brands International, including Burger King and Popeyes, the brand has a solid connection to Canadian national identity.

Coffee from Tim Hortons costs around half as much as coffee from Starbucks. If you want a small cup of Caffe Latte, Tim Horton’s will only charge you $2.49, while at Starbucks, it will cost you $3.05.

6. Lavazza

The Italian company Luigi Lavazza S.p.A. makes coffee goods. In 1895, the corporation opened its doors in Turin, Italy. It began as a modest corner grocery.

The Lavazza coffee brand is well known in Italy. The company has recently opened locations in the United States and other European countries. 

The company provides ground coffee for use in Moka pots.

Customers like the company in significant markets, such as in the U.K. and the United States. Lavazza is in the same industry as Starbucks; thus, it’s a respectable substitute.

However, the company has been handed down through the Lavazza family for several generations and has earned a solid reputation in the market. 

Lavazza also operates several standalone retail coffee shops. The Lavazza Blue professional capsule system is attracting office workers in the UK. 

A Lavazza coffee machine is available for £1 with a minimum purchase of 200 coffee capsules through this program.

There are many different countries from which Lavazza imports their coffee. These countries include Brazil and Colombia, Costa Rica and Indonesia, and Mexico and the US. 

It is present in several countries as either its brand or as a subsidiary of another company. 

7. Peet’s Coffee

Peet’s Coffee is another Starbucks alternative that began as a coffee shop.

This is a coffee roasting firm that sells its products in a retail setting. The company was founded in 1966 and had its headquarters in the San Francisco Bay Area of California.

Peet’s Coffee has developed its company across various locations and has become a notable name in the coffeehouse chain’s business.

Starbucks Competitors

Peet’s Coffee is currently owned by the JAB Holding Company, which owns several other restaurants and coffeehouses.

Peet’s introduced darker roasted Arabica coffee to the United States in blends that included French roast and grades suitable for espresso drinks. 

In addition, the merchant sells freshly roasted beans, brewed coffee, and bottled cold brews. JAB Holding Company is a significant player in the coffeehouse and restaurant chain market.

Peet’s Coffee stands out from the crowd by using this brand. Peet’s Coffee reported revenue of $983 million in 2019.

Peet’s coffee is sold in over 14,000 grocery stores across the United States. In 2016, the retailer made $800 million in sales.

Over the years, the corporation has gradually increased its market share.

8. Kentucky Fried Chicken

KFC is the world’s largest fried chicken restaurant chain. They have over 20,000 branches globally and operate in over 120 countries, with their main office in Kentucky, the United States.

KFC established and marketed fast-food chicken after opening its first location in 1952 through franchising and advertising.

KFC is a well-known fast-food chain in the United States that specializes in fried chicken. Col. Harland Sanders opened his first restaurant in Corbin, Kentucky, in 1939, and it quickly became a national success thanks to the secret sauce he devised for it.

The company has grown steadily since becoming the largest chain of chicken restaurants globally, employing 800,000 people and having 23,000 restaurants in 135 countries. The chain is expanding every six hours, according to reports.

The original advertising budget was estimated at roughly four million dollars and was spent on television advertising. KFC employed an advertising agent named ‘Leo Burnett’ in the late 1960s.

KFC became one of the most popular fast food companies in the United States in the mid-1970s thanks to the ‘grab a bucket of chicken’ Leo Burnett campaign.

KFC is owned by Yum Brands, the same company that controls Taco Bell and Pizza Hut.

KFC accounted for 49% of last year’s combined revenue of $ 49 billion, the highest of the three. Its biggest market is the United States, where 41% of its total sales are generated, followed by Asia at 30%.

You can find many chicken-based dishes, including chicken on the bone, chicken strips, and sandwiches.

The menu has grown to include salads and side dishes, aside from french fries and soft drinks.

It offers coffee on its menu but has begun to establish its coffee shop. A concept similar to Mc Café’s, Colonel’s Café, has been operating in Japan since 2014, and a KFC Coffee Corner was introduced in Romania in 2017.

9. Dilmah

Srilanka-based Dilmah Ceylon Tea Company exports tea all over the world. Sri Lankan tea company Dilmah Tea Company was established in 1974 and is famed for its Silone Tea.

Dilmah t-lounges offer tea-inspired snacks and drinks in Sri Lanka, Iran, Indonesia, Kuwait, the UAE, and Brunei. They also sell their products to over 100 countries.

Dilmah Tea is becoming a global brand thanks to Sri Lanka’s national cricket team’s advertising and endorsement of the team’s uniforms.

The company has built a solid name thanks to a genuine, natural, and high-quality local product. MJF Teas and Ceylon Tea Services are also under its ownership.

Dilmah has maintained the concept of a tea produced and packaged in its area of origin throughout its history, resulting in a range of over 2,700 items.

Top Best Buy Competitors & Alternatives

According to Data-monitor, Ceylon tea, the parent company of Dilmah, was founded in 1981 and had estimated revenue of $7.92 billion, with a net profit of $1.04 billion.

The company owns a vast global distribution network, tea gardens, factories, printing and packaging facilities, and a printing and packaging facility. It employs 644 people and is present along the entire value chain.

The company’s brands include herbal infusions, green tea, iced tea, and other tea flavors, like masala chai and Ceylon tea.

10. The Republic of Tea

The Republic of Tea is made from widely available organic ingredients. It is typically packaged in loose tea bags and comes in various tastes and colors, such as white tea and red tea.

The ingredients in this brand are widely available organically. Loose tea bags with varied flavors and colors are used for packaging.

Starbucks Competitors

The hues in the tea come from the red and white wine produced by the Republican firm before it entered into the tea business in 1992.

The brand has gained global recognition and an annual sales revenue of approximately $20 million due to rebranding and advertising initiatives.

The original wine manufacturer achieved global accreditation through rebranding and advertising, with projected annual earnings of over $20 million.

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The company’s best-selling items include hot apple cider, pumpkin spice black tea, ginger peach, and comfort, joy black tea.

11. Folgers

Folgers offers pre-ground coffee that is easy to prepare, widely available, and considerably less expensive than Starbucks. The savings over time are more than sufficient to justify the lower price of Folgers.

Folgers Coffee Company has been in business since 1850. It is the oldest company on the list. Folgers does not provide the same service or products as Starbucks, but it can substitute.

Folgers Coffee is not a network of coffeehouses. However, it is a US-based brand of ground, instant, and k-cup coffee. The company is focused mainly on the United States market.

For decades, Folgers has sold pre-ground coffee for home use and has earned a unique place in the hearts of consumers.

Additionally, it conducts business in Asia, Canada, and Mexico. It is a subsidiary of J.M. Smucker Company and is included in its food and beverage sector.

Folgers specializes in coffee, so their products can be considered a substitute for those offered by Starbucks. Additionally, the company’s products can help clients spend less when buying coffee from chain cafes.

The company’s coffee products will reach 1.3 million households by September 2020, with packaged coffee sales increasing by 14% in just September.

12. Tazo

Tazo Company manufactures herbal tea. Starbucks purchased the project as a fieldwork project in Portland and rebranded it to become today’s company.

Tazo Company is headquartered in Portland, Oregon, in the United States. Some of the company’s most famous tea brands are used as alternatives to coffee.

Tazo Tea is popular due to its distinct flavor, aroma, and therapeutic properties.

Herbal tea is one of its most popular items. When comparing Starbucks competitors, such indirect competitors rarely fail.

Tazo tea is competitive because of its distinct flavor, aroma, and therapeutic benefits.

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Tazo’s revenues were anticipated to be $1.3 billion in 2010. It currently operates in over 46 countries and has over 17,000 shops under the Starbucks brand.

Tazo currently serves clients in more than 46 countries through more than 17,000 locations managed by Starbucks.

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