Local Biz Blogs Official Blog
Welcome to our BizBlog! Browse blogs and find unique local businesses on the web at LocalBizBlogs.com. Get to know your neighborhood marketplace. You'll be surprised at what you'll find!
Do you own a business? Sign up for a free BizBlog!
Monday-Friday: 9:00 am - 6:00 pm
Saturday-Sunday: closed
How Starbucks Actually Helps Local Coffeehouses
Starbucks' invasion of every street corner spells disaster for local coffeehouses, right?
That's what one might think. Actually it has the reverse effect, according to Slate's article Don't Fear Starbucks.
The coffee giant's aggressive propagation means big business for local shops. Each new Starbucks draws more coffee drinkers. When lines get too long and their limited menu doesn't satisfy, people turn to the independent coffee shop next door. Often less expensive, mom and pop coffeehouses can compete by offering unique drinks and personalized service.
Check out these surprising numbers:
Here's a statistic that might be surprising, given the omnipresence of the Starbucks empire: According to recent figures from the Specialty Coffee Association of America, 57 percent of the nation's coffeehouses are still mom and pops. Just over the five-year period from 2000 to 2005—long after Starbucks supposedly obliterated indie cafes—the number of mom and pops grew 40 percent, from 9,800 to nearly 14,000 coffeehouses. (Starbucks, I might add, tripled in size over that same time period. Good times all around.) So much for the sharp decline in locally owned coffee shops. And prepare yourself for some bona fide solid investment advice: The failure rate for new coffeehouses is a mere 10 percent, according to the market research firm Mintel, which means the vast majority of cafes stay afloat no matter where Starbucks drops its stores. Compare that to the restaurant business, where failure is the norm.
It is refreshing to hear how local businesses can thrive when competing with big national chains.




0 Comment(s)