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charlesStarbucks is helping the small coffeehouses
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One thing that people really hate about Starbucks is their competitive strategy. They're well-known for buying into an area just to put other coffee shops out of business, and they've got ruthless marketing techniques.
But an interesting article in Slate shows us a hidden side to their ferocity: Why Starbucks actually helps Mom & Pop coffeehouses.
The author's contention is that, in many areas of the US, the opening of a Starbucks actually provides a boost to business, especially when they open up in the same block as an indie cafe.
People start going to Starbucks, sure, but when it gets too busy, they'll seek their coffee elsewhere. As the author, Taylor Clark, points out:
"Starbucks doesn't enjoy the kinds of competitive advantages that cut down its local rivals' sales...Starbucks, on the other hand, is often more expensive than the local coffeehouse, and it offers a very limited menu...
...In other words, a new Starbucks doesn't prevent customers from visiting independents in the same way Wal-Mart doesÂespecially since coffee addicts need a fix every day, yet they don't always need to hit the same place for it."
It's a very valid point - people don't really need to go to Starbucks for a coffee... it's more of a luxurious option. Starbucks is never going to build a megamall in the middle of nowhere - they need an area that's bustling.
And that's good for the small cafe - the area gets the reputation as a 'place for coffee' and everyone wins.
Starbucks doesn't like it, of course, but that's the game they've bought into.
