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Starbucks in retreat, trying to fake being local and independent

By Howard B. Owens

Faced with increasing competition from independent coffee shops across the country, Starbucks is embarking on an experiment to distance itself from its nationally known corporate brand and open coffee shops that give the appearance of being locally owned.

Over the past year, Starbucks has been forced to close 600 corporate-owned outlets, so its opened a new store in Seattle that looks nothing like the classic green and black Starbucks, doesn't use the Starbucks logo, store design or name anywhere in the coffee shop.

In the most obvious rip-off of an independent business, the décor of the new 15th Avenue Coffee and Tea, which the Seattle Times describes as a "rustic, eco-friendly style," is virtually identical to that of Smith, a successful bar next door. Owner Linda Derschang says Starbucks copied everything, from her vintage industrial light fixtures to her wooden seats, and even asked one of her managers where the bar's awnings came from. In an interview with the Seattle Post-Intelligencer, she noted:

"It's got a lot of salvaged wood, it's the same paint color inside as Smith and some of the wood-framed chalkboards look very, very similar… Where's the independent spirit in knocking someone off?"

There's two points worth noting from what's happening with Starbucks. One is, independents can compete with national giants, and customers are increasingly tired of generic corporate brands. The two trends, however, are mutually dependent. There must be locally owned businesses willing to be competitive and there must be customers who who will make supporting local business a priority.

I'm not a Starbucks drinker, never was. I can't justify paying $3.00 for a cup of coffee. Besides I love my local shops! I was a MSC man up intil Rob closed it down and have been a loyal Hot Shots guy since.

Not only is it better (in my opinion) than Starbucks, but about half the price for the same size!!!! It's a win/win!!!

Thanks Howard!

Jul 22, 2009, 12:02pm Permalink
Bea McManis

Phil, me either.
I'll take a cup of coffee from a home town diner before the stuff they serve at a chain coffee shop (and that includes DD and Tim Horton's).

Jul 22, 2009, 12:21pm Permalink
Peter O'Brien

I like the Leaf and Bean in Chili. That being said, coffee shops in general turn me off from staying there to drink unless I am purposefully burning the clock. They have an air of liberal importance.

Take the new lovin' cup in Henrietta. It makes me feel like I need a Macintosh or an iphone to be welcome. If not I better have thick framed glasses and an Obama shirt. No big deal though I just go over to TC Riley's where the bartender knows my name. (and yes he is always glad I came....)

As for Starbucks, I like their product. My only problem is that they charge for Wifi that most locally operated places offer for free. I don't think they need to make such drastic changes to compete with local shops. Reduce some of their overhead (such as the incredible employee benefits) and then reduce the price of the coffee and they should be fine. No need for the complete decor change.

Jul 22, 2009, 12:22pm Permalink
George Richardson

Peter thinks they should: Reduce some of their overhead (such as the incredible employee benefits)

I say yeah, or cut the CEO's pay to ten times that of a Barista. I'm guessing Peter dreams of one day being a CEO but currently is employed somewhere with no employee benefits. Of course, if he does get some I'm sure he would love to give them back to increase shareholders profits. Or am I taking liberties again?

Jul 22, 2009, 1:26pm Permalink
Peter O'Brien

I have great benefits George. But I don't think local baristas have the benefits that Starbucks gives. I was suggesting they be more competitive.

I don't take advantage of all of my benefits.

Jul 22, 2009, 1:30pm Permalink
John Roach

Howard,
You give no credit to other "big box" coffee shops like Dunkin Donuts or Tim Hortons. Good coffee at a good price.

The local coffee shops depend on good, steady, staff for repeat business, more than price, something Starbucks was not able to do.

Starbucks had a good thing going, but tried to get into areas, like Batavia, that will not pay $2-$3 dollars for a cup of coffee. They should have kept their original business model.

Jul 22, 2009, 1:40pm Permalink
John Roach

George,
I am with you on grinding my own beans. I enjoy going to Tim Hortons to have coffee with friends, but at home, I grind my own.

Ever try a coffee press?

Jul 22, 2009, 1:43pm Permalink
Dan Kennedy

I'll take an independent coffee shop any day, but Starbucks isn't so bad. The coffee's good. You can stay for hours without anyone hassling you. You get two hours of free WiFi with a Starbucks card. And if you buy coffee rather than the higher-end drinks, you'll pay about the same as you would at Dunkin' Donuts.

Jul 22, 2009, 5:45pm Permalink

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