Rhetorical: what made Pinkberry so special that it became a long-line craze in California?
Pinkberry was just frozen yogurt, right?
What makes Shake Shack special, such that it inspired a craze in NYC? What differentiates it from the 37 other semi-premium burger joints that have boomed in the last decade, like Five Guys.
Here's the answer: they're not all that special. They're providing a quality service, and people get bored of the same-old same-old Starbucks & Co. or typical fast-food burger (even the nicer ones).
These are massive physical industries. The physical services world doesn't lend itself to the easy monopolization that you see in software / Internet. Meaning, there is a lot of space for other competitors. Starbucks owns 25%-30% of their segment depending on which metrics you use, after all of these years and their vast success. Dunkin has another ~15% or so. I'd say 60% of the market is available to be fought over (much like in burgers, start-ups can absolutely steal back share from Starbucks).
Companies like Shake Shack, Blue Bottle, Pinkberry, and a zillion others, also play to the human desire to find new, trendy things to experience; the desire to not do what everyone else is doing; to seek out a different culture, or simply a slightly different tasting cup of coffee. That desire is perpetual, it will never cease, and that will also constantly break down dominant players over time (eg: McDonald's is rotting).
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Rhetorical: what made Pinkberry so special that it became a long-line craze in California?
Pinkberry was just frozen yogurt, right?
What makes Shake Shack special, such that it inspired a craze in NYC? What differentiates it from the 37 other semi-premium burger joints that have boomed in the last decade, like Five Guys.
Here's the answer: they're not all that special. They're providing a quality service, and people get bored of the same-old same-old Starbucks & Co. or typical fast-food burger (even the nicer ones).
These are massive physical industries. The physical services world doesn't lend itself to the easy monopolization that you see in software / Internet. Meaning, there is a lot of space for other competitors. Starbucks owns 25%-30% of their segment depending on which metrics you use, after all of these years and their vast success. Dunkin has another ~15% or so. I'd say 60% of the market is available to be fought over (much like in burgers, start-ups can absolutely steal back share from Starbucks).
Companies like Shake Shack, Blue Bottle, Pinkberry, and a zillion others, also play to the human desire to find new, trendy things to experience; the desire to not do what everyone else is doing; to seek out a different culture, or simply a slightly different tasting cup of coffee. That desire is perpetual, it will never cease, and that will also constantly break down dominant players over time (eg: McDonald's is rotting).