Starbucks Aids Mom and Pop Cafe’s?

Slate is reporting that many local mom and pop coffeehouses experience a boost in sales after a Starbucks opens up nearby. Starbucks is often credited with boosting the idea that sweet caffeine can cost $4.75 per cup and pervading society with the caffeine buzz mentality, but can a store next door really boost your profits?

So now that we know Starbucks isn’t slaughtering mom and pop, the thorny question remains: Why is Starbucks amplifying their business? It’s actually pretty simple. In contrast to so-called “downtown killers” like Home Depot or Wal-Mart, Starbucks doesn’t enjoy the kinds of competitive advantages that cut down its local rivals’ sales. Look at Wal-Mart. It offers lower prices and a wider array of goods than its small-town rivals, so it acts like a black hole on local consumers, sucking in virtually all of their business. Starbucks, on the other hand, is often more expensive than the local coffeehouse, and it offers a very limited menu; you’ll never see discounts or punch cards at Starbucks, nor will you see unique, localized fare (or—let’s be honest—fare that doesn’t make your tongue feel like it’s dying). In other words, a new Starbucks doesn’t prevent customers from visiting independents in the same way Wal-Mart does—especially since coffee addicts need a fix every day, yet they don’t always need to hit the same place for it. When Starbucks opens a store next to a mom and pop, it creates a sort of coffee nexus where people can go whenever they think “coffee.” Local consumers might have a formative experience with a Java Chip Frappuccino, but chances are they’ll branch out to the cheaper, less crowded, and often higher-quality independent cafe later on. So when Starbucks blitzed Omaha with six new stores in 2002, for instance, business at all coffeehouses in town immediately went up as much as 25 percent.

I am sure Starbucks would be disappointed to know that the brand image of Starbucks is essentially diluted down to any shop that can pull a good shot of espresso.  Our town has yet to be invaded by the Stabucks overlords but we do have our share of independents.  I work in a small college town which just had a new shop move in in an attempt to compete with the locally owned shop of 10 years.  If the addition of another coffehouse truely makes a “coffee nexus” than these two shops should coexist and benefit from the proximity.  Finally it is worth noting that the article isn’t based on an empirical study but anecdotes from various experiences in the coffee industry.

Slate: Don’t Fear Starbucks

img via Man in a Bowler Hat

Random Updates

Several Happenings

• I was recently interviewed for an article about racism in online gaming for a mass media publication. A link will be forthcoming. If you have any inquiries into the use of profanity or racism in online gaming please contact me for more information.
• The Amplifier in my car is now broken so if you see a good deal on something that can push a few hundred watts into an Infinity 12″ drop me a line.
• Krups USA is currently taking steps to replace my coffeemaker which exploded with my hand in it back in March resulting in 6 stitches. More details including photos and the letters sent later this week or next.
• I signed up for an account with Metafilter specifically to use the ASk.metafilter.com section.
• I have a million other things to share but they will have to wait as my brain is currently in overdrive.

Starbucksstore.com: The Forced Upsell

Today I found a great deal at consumerist.com If you sign up for the new Google Checkout service you get $10 to use towards a Google checkout purchase anytime before Dec 31 2006. Click here to Sign up for Google Checkout and save $10. Unfortunately I cannot use the $10 savings at Gamefly.com which would rock my face off (sorry watched Accepted last night).

You can however use it at Starbucks. I usually avoid Starbucks because ti is expensive and I would rather support he local coffee house. However in this case armed with a $10 off coupon i thought I could score some coffee on the cheap. I found my way to the Starbucks Store and located a pound of Kona for $14.95, I was a little shocked by the purchase requirement they have. Starbucks Store requires a minimum purchase of 2 items of any variety! The reasoning behind this is explained as:

Why do I have to order a minimum of two items?

StarbucksStore.com is committed to providing competitive shipping rates. StarbucksStore.com currently has a 2 item minimum purchase. While we will continue to evaluate this policy, it is always our desire to deliver the best value for our customers. Currently, this policy allows us to keep the shipping and handling charges as low as possible given the products available on StarbucksStore.com.

Is it just me or is this ludicrous. I can understand minimum orders from a retailer who sells coffee by the beans. You must purchase at least 3 beans of coffee per order much like the electronics retailers who have minimum purchases for small cheap components. This forced upsell is ludicrous considering that ordering two units does not get free shipping or any other promotion. The people making decisions at Starbucks Store need to switch back to regular coffee before making decisions.

Freaky Folgers Coffee Commercial

Check out this great Folgers Coffee commercial!  The commercial is hilarious and reminds me that I should wake up early enough to make coffee at home tommorow.  Sorry it won’t be folgers though.

Crazy new Folgers Comercial

New pics on Flickr

Posted some new pics up on flickr today.

My new Work area with a wall mount monitor:

High Life Bottle: Upside down label:

Soco On Ice:

Another Shot of Soco:

Mario Figurine:

More Pics on Flickr

Worth Reading: Stories and Novels

I have had a little downtime lately and I was able to plow through some great books.

Tim Pratt’s The Strange Adventure’s of Rangergirl @ Amazon

A very interesting novel which IMHO is more great fiction than sci fi.

Description

Marzi works at Genius Loci, a coffee shop in Santa Cruz, California, whose claim to fame is the murals in it, painted by Garamond Ray, who disappeared after the 1989 earthquake. Marzi also writes a neo-western comic called The Strange Adventures of Rangergirl, in which the heroine battles otherworldly versions of the villains of westerns. When one of the shop’s regulars shows up claiming to worship the god of the earthquake, and moments later a quake rocks the place, and Marzi sees an oddly dressed figure running off–well, then, things are clearly becoming strange. Life begins to imitate art too closely for comfort: a woman made of mud, part of a story in Marzi’s comic, is wandering the streets trying to achieve her own mysterious goals, and the villain of the same piece–a primal force from the otherworld behind the locked door in the Desert Room of Genius Loci–turns out to want to destroy California. With Lindsay, a friend from art school, and Jonathan, who lives in Genius Loci’s attic apartment while he is studying the murals for his thesis, Marzi travels beyond the possible into a grand and magical western, indeed

I definitely recommend this book which I thoroughly enjoyed. The only issue I had with it was that it seemed to take to long to get to the “other world”. Even withits shortcomings the characters are well developed and diverse. The “other world” was intersting to me and very well presented.

Check out a Ranger girl Yarn HERE

I would love to see more stories taking place in the world of Rangergirl. I enjoyed the Yarn almost more than the the otherworld adventures presented in the Book. Tim, if you read this some great short stories live here please write more about these adventures of Rangergirl.

Tobias Buckell:
Fish Merchant @fictionwise

Great short story involving Pepper a name you may not be familiar with but when Crystal Rain Comes out in about a month you will learn more about him. Pepper = Hardcore. Well worth the ~50 cents and the time to read.

All Her Children Fought @fictionwise

Interesting short story, It was worth the read and gave a good view of some of the characters in a short story although I didn’t really get into it.

Four Eyes @ManyBooks.net

This was one of my favorite short stories from my weekend of reading. I have always been intrigued by the mystique that surrounds the Obeah even though I didn’t know that name for the person. I especially enjoyed the Marrying of old shamanistic(word?) elements with technology. I would love to see this develop further as either a novel or a serial release, Manny would be an interesting character to follow.

Currently Reading
Tobias Buckell – Necahual @ manybooks.net
Tim Pratt – Little Gods @fictionwise

Coca Cola Blak : Coffee and Cola

Coca Cola Blak

Coca-Cola Bl?k is an invigorating and stimulating blend that has a perfect balance of the effervescent taste sensation of Coca-Cola and natural flavors, with real coffee. The lightly carbonated, mid-calorie beverage, which is designed to appeal to adult consumers, is yet another example how The Coca-Cola Company reaches out to new audiences and addresses new beverage occasions.

“Coca-Cola Bl?k is not just a flavor extension. It is a blend of unique Coke refreshment with the true essence of coffee and has a rich smooth texture and has a coffee-like froth when poured. We believe we have created a new category of soft drink – an adult product in a carbonated beverage – and a whole new drinking experience. This brand is ideal for any part of the day when people are looking for renewed energy or simply to take a break,” said Marc Mathieu, vice president, Global Core Brands, The Coca-Cola Company.

Link to Press Release

Interesting. Worth a try, I would say it’s success banks on its price point. Price it similar to a regular 20 oz. and it will survive put it out with a price similar to energy drinks and it will fail.

Delonghi Type Bar 32 Review

I have used the Delonghi Espresso Machine for about 3 weeks now and Overall the machine is an excellent entry into the Home Espresso/Cappuccino Machine. The Machine Heats up for use in about ~10 minutes. This is an acceptable amount of time for me for morning prep. The machine makes a great shot of Espresso with ease. It can handle pods or ground coffee but I have mainly used ground coffee, pods are subpar in my opinion to the freshly ground espresso.

Disclamer I have worked in a coffee shop for ~2.5 years and I am picky about my caffeine intake especially in the coffee department.

Pro’s
- Easy to pull a good shot of Espresso lots of crema
- Quick Heat up
- Pump Driven like the one at your local coffee house
- Easy to maintain
- Espresso at Home

Con’s
- Steam Wand is set low on the machine making for difficulty in removing a full pitcher after frothing.
- The Built in Tamper is worthless but a ~8 tamper form a local store makes up for this and is much cleaner.
- If the machine is not used for several days it takes longer for the Steam Wand to work.

I would recommend this purchase if you can find the Type 32 for under 150. Anything higher and you should look at a higher up Delonghi or a Gaggia Espresso Machine.

Rating 8/10

Recommended Accessories:
Thermometer for milk temp (~150 degrees)
Tamper
Double shot espresso “cup”
Frothing(streaming) pitcher

And now some pictures

Any questions leave a comment.

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