Fish & Co Express and Starbucks selling instant coffee

In the tough time likes this, when consumer scale back the spending, business has to adapt and change. The traditional food and beverage sector is also affected, because people refrain from eating outside often.

Fish & Co Express was launched for the company to go into fast food business. This is a different business segment where most dominated by establish by fast food brand like Mac and KFC. Fish & Co guess its brand and taste would make it an attractive proposition for consumer to try its burger. Therefore, the Fish & Co Express was established at Downtown East. It is expected to draw the young crowd who fancy fast food and might not frequent the restaurant.

If Fish & Co can maintain the quality of the offering, this can be another way of bringing in more revenue. Time would tell whether this venture would succeed. I think the critical success factor of any business is whether do consumer get value for money.

On global front, we know Starbucks is running into trouble. Many outlets were closed in the rationalisation exercise. Those losing money or under performing outlets are closed and they urgently looking ways to boost the business. People used to believe that Starbucks is an affordable daily luxury that people cannot live without. The recession proves this belief is wrong.

The new product Starbucks wants to launch now is actually instant coffee. If you look at the market of instant coffee, it is growing. More people having the cup of instant coffee whether at home or office. Maybe because of the slowing business, they are trying to target this new market segment. Won't it be great if you can enjoy a cup of affordable premium coffee at home? Brand consultant questioned this move, whether it would erode the brand. It is a double edged sword, you could be gaining new customer but losing existing customer who sit in the cafe.

Business change everyday and a good management is out to act prudently to keep the company afloat and try to grow the profit. I am still an equity person and believe in stock investing.