Starbucks Vs. Peet's Coffee & Tea
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Starbucks Vs. Peet's Coffee & Tea

In this report

Starbucks and Peet's Coffee & Tea both offer high quality products.  Both offer a great line of coffees, teas, and accessories.  Both have physical locations that offer free Wi-Fi (Starbucks did not always offer it, but had to follow its competitors, which were all offering free Wi-Fi) along with hot products, and an environment conducive to having a one on one conversation or having a small meeting. 

The main problems buyers may face while choosing between the two companies is quality of the coffee or tea.  Both companies offer premium products.  A buyer may like the accessories on both websites.  For example, a buyer may like both companies' coffee makers.  If price was not a factor, then they may check reviews on the Internet.  Even then, it would be hard to determine, especially if both products had similar reviews.   It would be a lot easier for the buyer to know exactly what they want if one company sold much higher quality products than the other.  Often, between these two companies, it will go down to convenience of location if a buyer is going to a physical store, and a taste preference.   

#1 - Starbucks   http://www.Starbucks.com

Starbucks has a much larger share of the coffee market than Peet's Coffee & Tea does.  Not only with a far greater amount of physical locations, but the company also offers more coffee products.  Starbucks introduced an instant coffee product called Via, which actually tastes almost like regular coffee.  Starbucks also joined the K-Cup revolution and sells their own line now.  Most of Starbucks' coffee products, while still priced at the high end are slightly cheaper than Peet's Coffee & Tea products.  

Starbucks cannot do the in store demonstrations like Peet's Coffee & Tea can because the labor and product costs would be far greater with all the locations Starbucks would have to accommodate.  While Starbucks sells Tazo, which is a popular, high quality tea, Peet's Coffee & Tea has a much larger selection of teas to choose from.  

Some of the similar products cost the same at both stores.  For instance, the 16 oz. Raw Finish Stainless Steel Tumbler at Starbucks costs $19.95.  The Blue 16 oz. Spill Proof Logo Travel Tumbler at Peet's Coffee & Tea is also $19.95.  

#2 - Peet's Coffee & Tea   http://www.peets.com

Peet's Coffee & Tea gives more of a personalized touch for their in store customers than Starbuck's does. Peet's Coffee & Tea gives periodic demonstrations at their outlets every first and third week of the month.  Peet's Coffee & Tea has a larger selection of tea than Starbuck's does.  It can be sold by the pound or in four oz. sizes.  

Peet's Coffee & Tea has far fewer physical locations than Starbucks does.  Starbucks also has far more popular products such as K-Cups and Instant Coffee, which Peet's Coffee & Tea does not sell.  

A one pound bag of coffee from the Americas ranges from $13.50 to $15.95 if you buy the products online.   A pound of Starbucks coffee online typically ranges from $11.95 to $13.95.  

The Bottom Line

Starbucks is better for a buyer if they are looking to primarily buy coffee products if taste is not a factor.  Starbucks coffee is slightly cheaper, and some people may like the ease of the instant coffee or the K-Cup.  If a buyer is looking for a physical location, then it is very likely Starbucks will be the number one choice since Peet's Coffee & Tea only has physical locations in six U.S. states.  If a buyer is basing a purchase off of amount of products, then Starbucks will be the likely choice.  Also, someone looking for more of a bar atmosphere will go to Starbucks over Peet's Coffee & Tea since that is not one of Peet's main focuses.  

If a buyer is a tea enthusiast, then Peet's Coffee & Teas will be a likely choice with their larger selection of rare and specialty teas.  Someone looking for a little more of a coffee experience will likely go with Peet's Coffee & Tea.  Often, a buyer will find which coffee or tea is their preferred brand and stick with it. 

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Comments (3)

I'm a fan of both. Thanks for a nice comparison.

Ranked #40 in Tea & Coffee

Thanks Cheryl. They are both good. I've bought both in the stores. The only physical Peet's location I've ever been to was at Penn State. They had one for a little while on campus.

I haven't been to a Peet's Coffee & Tea ... would love to try their teas. I gave your article a Google +1.

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