I came across an article on Salon today titled “Don’t Fear Starbucks: Why Starbucks actually helps mom and pops coffeehouses.” A bit against conventional wisdom, I think we’d all agree, and I have little or no reason to criticize the article. I recommend reading it. I’d just like to add a bit to it.
The article states that there’s now 15,000 Starbucks locations worldwide. A staggering number. Further, they’re opening six new ones PER DAY. Here’s the problem, as I see it: they’re not very good. Criticize me if you like, but listen to me first. I’m sitting here drinking Starbucks as I read this, so I hope I’ve earned the right to at least give them a bit of advice, criticism, whatever you’d like to call it.
By “they’re not very good” I mean two things. First, I bring up their store opening numbers because while they are opening many new stores, many are small - possibly not even stores, but things like stands in the mall. Indeed, many of the new ones I see in Boston are crammed into tiny shop real estate that doesn’t really fit them. These lose the atmosphere that made Starbucks a nice place to go, whether to talk to your friends, read a book, or just listen to the music. These newer locations often feel cheaper, feel crammed, feel like they’re there just for the sake of being there. Just to make sure you can never forget Starbucks exists (yeah, like that’d be possible). Starbucks has lost a bit of my loyalty since they started doing this. Above all things, it was the atmosphere at Starbucks that drove me to spend many hours there.
Second, when I say they’re not very good, I actually do mean their coffee. Before you start saying “no one goes there for the coffee,” I’m using coffee in a general way to mean coffee, espresso, and any of their espresso based drinks. Now at some level it matters little. The average Starbucks drink (grande or venti) has 2 shots of espresso, and a ton of sugar and milk. Basically, you barely taste the espresso. That’s a good thing, because have you ever tried Starbucks espresso? It’s awful. It’s barely drinkable. I love espresso, but I must really need a caffeine hit to drink Starbucks. What on EARTH convinced Starbucks that going to automated machines was a good idea? I know the answer: Speed. But Starbucks built its reputation, at least in part, on quality. What happened?
Combine these two issues: mediocre newer locations (of course, not in all cases) with very middle of the road, to somewhat poor, quality. If, as the article states, Starbucks created a coffee nexus in a location, gets people drinking coffee more, gets people trying out the mom and pop next door more, some amount of those people are going to bail on Starbucks for a well designed, well run alternative. Starbucks has raised the amount of money people are willing to spend on coffee in this country, and that is most certainly a good thing, for the mom-and-pops. Now they just need to take advantage of it.