High Point Coffee Case Study

Seattle-based Starbucks recently announced another price increase for all milk-based beverages at the largest coffeehouse/coffee bar chain in the world. With its trendy appeal and shop on every block personality, Starbucks built itself into one of the premiere brands in the world alongside Google, McDonalds, and Coke. With growth comes competition from all directions. Along with longtime Starbucks enemy Dunkin Doughnuts, a new contender for the java king title has emerged as new java joint, High Point Coffee pushes its way into the fray. Based in Mississippi, the newbie java spot has only been in business for less than five years. However, with its surge in revenues and customer retention, executives recently decided to push the brand nationally, going into direct competition with what they call

With its free WI-FI service, High Point Coffee is a magnet for laptop users who are looking for a hi-speed internet connection while enjoying their coffee. Starbucks has a partnership with one of the wireless carriers with a per minute usage charge attached. For coffee drinkers who value using their laptops while getting a java fill-up, free WI-FI is priceless. Another immediate difference between the two is the artsy nature of High Point. Local artists ' works fill the walls of the High Point coffee bars. Along with the closed circuit television, art displayed, and store design, the feel of High Point separates itself from any coffee bar around. It is obvious that this battle has not really started yet. With High Point Coffee choosing to franchise its growth as opposed to corporate development driven growth, the question will become can High Point maintain the quality of its product with franchisees running the coffee bars independently as opposed to the established Starbucks style of growth. When you walk in a Starbucks, you will get the same offerings nationally. A High Point location in one part of Memphis will have some offerings the High Point in another area