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Sheetz Fights the Starbucks Phenomena

Written by George Anderson

By George Anderson

Starbucks has demonstrated that consumers will spend more for what they perceive as a superior cup of coffee.

Now, Sheetz and others are trying to convince consumers they can get their coffee at the local convenience store and doughnut shop with no fall-off in quality.

Tammy Dunkley, advertising manager, Sheetz told the Pittsburgh Post-Gazette what her companies and others have to overcome. "People assume you can't get good food or good coffee at a convenience store."

Two years ago, to upgrade its coffee image, Sheetz added a coffee hostess to each of its stores and put time limits on how long a pot could sit.

Ms. Dunkley said, "It's all about changing habits. Coffee is a habitual purchase."

Moderator's Comment: Does a retailer need to be in the gourmet bean business to be successful selling hot coffee today? How important is the "atmosphere" to the performance of Starbucks and others seeking to grab a share of the gourmet coffee business?

The great majority of coffee drinkers do not spend $3 for a cup. According to the National Coffee Association, 88 percent of coffee drinkers do not drink gourmet coffee. [George Anderson - Moderator]

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