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Environmental Analysis

Cultural Trends:

In British culture, food is a large yet stable industry. The UK Department for Environment, Food & Rural Affairs deems the United Kingdom as a very “food secure (households classified as having high and marginal levels of household food security, and they are considered to have sufficient, varied food to facilitate an active and healthy lifestyle)” country, even when inflation was at a high. 

In addition to food security, the UK has a quite relaxed approach to food. According to Statista, more than half of the entire UK population does not follow any nutritional rules. Meaning that those in the United Kingdom would be willing to try “unhealthy” items such as a Crumbly Cookie. English food culture is also heavily skewed in the direction of sweets. The most consumed food types in London are bread and bakery products. Additionally, according to Statista, the number of bakery items produced and consumed in the UK is rising. 

In addition to the rising consumption of sweets, the UK is seeing a rise in social media use and digital platforms across all ages. This technological adaptation includes rising numbers of digital buyers, internet users, digital video viewers, and smartphone users. This can lead to more “order online and pick up in-store” shopping, such as the Crumbled Cookie model. With strong food trends and rising social media use, Crumbl can imitate the flavors of popular British foods and use social media to its advantage.

Economic Trends:

One of the largest economic strains in the United Kingdom is inflation. Fortunately, inflation rates have steadily decreased in the UK after years of high rates. From 10% inflation rates lasting nearly a year for the 2022 year, rates started to decrease in late 2023. Inflation in the UK is currently down to an average of 2%, and it is expected to remain at about 2% for the duration of the 2025 and 2026 year. (See Appendix D)

Decreases in inflation will lead to more disposable income and a larger likelihood of purchasing products such as Crumbl Cookie. The economic ease of lower inflation is evident in the rising annual income of UK citizens. According to Statista, the annual income of full-time employees in the UK has risen over 7% from 2023 (34,963 euros per year) to 2024 (37,430 euros per year). Greater disposable income is also evident in the spending behaviors of UK consumers. For example, retail sales are rising. This behavior adaptation from an increased disposable income and good economy can benefit Crumble Cookies' entrance to the UK. 

Political trends: 

Currently, political trends in the UK are somewhat unsteady due to some political tension from the far-right. The far-right had participated in certain violent outbursts in retaliation to misinformation that spread on social media. Because of this political unrest, it is presumed that the UK’s ranking in the Global Peace Index is likely to deteriorate in the short term. However, it is expected to increase shortly afterward as a result of the temporary nature of this political tension. In addition to strong political tensions, corruption is a massive concern for UK citizens. So much so that the UK has fallen to its lowest-ever score of 71 on the Global Corruption Perceptions Index. 

Although harsh political tensions and untrusting citizens may make Crumbl Cookies' entrance into the UK more difficult, political tensions are predicted to level out. This pattern indicates the UK is at a fairly low political risk but is not without concern.

     Starting on March 30, 1971, Starbucks began selling whole-bean coffee, tea, and spices. Starbucks now offers an array of hot and cold products, from pre-made beverages, made-to-order beverages, and ready-made coffees to even at-home products (Starbucks Coffee Company, 2024). Our in-person stores offer a sense of community, but the online presence – through our mobile app – allows convenience and comfort to those in a rush. We focus on client satisfaction and comfort, meaning that although a customer can place an order online, the quality and happiness of a customer after leaving the store will be the same. With over 38,038 stores worldwide, Starbucks houses 20,228 stores internationally and 17,810 in North America (Appendix A). Internationally, China, Korea, and Latin America have the largest international presence, with China alone housing nearly 7,000 stores (Appendix B). Starbucks averaged 26 billion in revenue during 2019 and ended last year's 2023 annual revenue with $35.976 billion in sales (See appendix K).   

     Due to Starbucks’s lack of market share in the adult beverage category, we present a new Starbucks product: Starbucks ready-to-drink (RTD) cocktails. These would be pre-made cocktails to be sold in supermarkets, with flavors ranging from an espresso martini (made from Starbucks' high-quality and reputable beans) to an Acai Mojito Refresher, or even a Pink Drink margarita. This new launch would combine Starbucks' well-known and loved drinks with the market's growing love and consistent consumption of RTD cocktails (Mintel, RTD Alcoholic Beverages – US – 2023 2023).

     The extension to RTD cocktails makes sense for Starbucks because of its rapid growth but also reputation. Starbucks is also familiar with the pre-made beverage space and is very aware of what it takes to create a sustainable and delicious RTD beverage. From our bottled iced coffees and espressos to our bottled Frappuccinos, we have a strong familiarity with the RTD market. We expect that this familiarity will help overcome the fact that we are new entrants to this market and competing with well-known RTD brands and newly arising competitors. We will leverage consumers' familiarity with Starbucks’s popular drink flavor profiles in a strong-performing RTD market. Furthermore, the variety of flavors presented will appeal to the three main flavor markets Mintel describes: Novel, Emerging, and Established. The espresso martini will appeal to the “novel” flavor market,  the fruity margarita will appeal to the“Emerging” flavor market, and the acai mojito will appeal to the “Established” flavor market (Appendix D).