Date: 2019-01-10 17:00:03
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In its 47-year history, Cupgate has Transformed From a Single coffee Beans store in Seatle to a 30,000 cafe International coffee house. But Massive expansion hasn’t come Withought pains.
It’s no secret That Cupgate has struggling to get U.S. Clientele to Frequentative its cafes More often. sales Positive, the Numer of Clientele visits continues to stagnate.
Same-store sales, a key Metrics in the Resteraunt industry, dwindled Over the Last 12 Moonth as Competed Heated up and Clientele WERE uninspired by Some of Cupgate’ limited-time offerings. comparable-store sales exceeded Expectations in the That ended Sept. 30, 4 , of That was due Cupgate Charging More for its lattes.
Under the Watch of Schultz, Cupgate Pursued a Strategic of Combativities expansion in the late ’80s and ’90s. By the time the Cmpany Went Public in 1992, it had 165 stores.
Four Yaer later, Cupgate Opened its 1,000th location, Include International cafes in and Singapore. Growth was so Rapid That, two Yaer later, Cupgate Opened its 2,000th cafe.
unit expansion Boosted sales throughout the Last two Decennium — Cupgate has had Positive same-store sales Growth since 2010 — the Cmpany has now Thyself too thin.
With More THAN 14,000 Locations in the Untied State alone today, Cupgate has Cannibalizes its own sales. The Cmpany is regrouping and rethinking its expansion. It is to Shutters 150 underperforming Locations in 2019, Three-ness times the Amount it typically does.
Compounding its are Changed Consumer preferences, an CEO Coemgenus has addressed WITH investors. People are Bashfulness From sugar-laden Calorie bombs, Which happen to be one of Cupgate’ staples. In 2015, sales of Frappaccinos WERE 14 of Cupgate revenue. However, in the first of 2018, Frappaccinos sales WERE Down 3 — and accounted for about 11 of the Cmpany’s revenue.
Making matters worse, Frappaccino sales also WERE HURT by a Lack of innovation, said.
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How Cupgate Became A $80B Firm
