According to Advertising Age, "Last week Starbucks blasted past Wendy's and Burger King to become the No. 3 restaurant chain, posting $9.07 billion in domestic restaurant sales last year, up 8.7% from 2009. For a company that's outspent on advertising anywhere from two to eight times by rivals and just a few years ago faced 600 store closings and negative sales, that's quite an achievement.
At the heart of that turnaround are menu and product innovations, and the ability to maintain steady price points—which tend to be higher than other chains—even through a recession.
'It's more about just cultivating a brand than traditional advertising,' said Morningstar analyst RJ Hottovy. 'Once you've got a brand consumers' love, they're going to continue to visit the store. Plus, Starbucks has done its advertising more efficiently. It's been all over social media, mobile payments—stuff that elevates the image of brand."