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Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

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Re: Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

#51
post #23

Unfortunately, Starbucks is opening “kiosk only” locations with no seating that, obviously, fail to function as a third place. My partner finished up a medical appointment and was waiting for me to arrive, and decided to stop in Starbucks. Oops, just a kiosk. The options left for a “third place” was a petrol station that had seating and a grocery store. Somehow I don’t think petrol station seating areas will promotin…

> Unfortunately, Starbucks is opening “kiosk only” locations with no seating that, obviously, fail to function as a third place. And when they convert an existing location to kiosk only, the prices do not go down. There are two Starbucks locations in downtown Redwood City, about 250m apart. The one on the right side of the tracks has comfortable seating and tables. The one on the wrong side of the tracks, in the dyin…

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Re: Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

#52

Earlier quoted context omitted.

Sounds like they need to split up the brand. Customers need to have a consistent experience across locations

Let’s segment this market! “Starbucks Deluxe” for the golfers and yacht owners. “Starbucks Influencer,” with pink cups and led rings at every table. “Starbucks Classic” for the retired and confused. And of course, “Starbucks Homeless” to capture the downtown vibe.

In the same vein, aren't there also McDonald's McCafe's too? Some friends have told me the coffee ain't too bad, actually.

[oops, sorry, this should have been under the thread about Starbucks Reserve]

Re: Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

#53

The study basically compared neighborhoods that received a Starbucks versus neighborhoods that did not. What if Starbucks decided to open in those neighborhoods because of some confounding factor that suggested an increase in economic activity?

> We find that, when compared to census tracts that were scheduled to receive a Starbucks but did not do so

There still might be a confounders, but they at least tried to control for that.

Re: Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

#54
post #17

This is an aside, but my how far has Starbucks fallen at the hands of profit optimization. A Starbucks used to be a great place to spend time. Today the interior of almost every Starbucks is cold, beat up, and (intentionally?) uncomfortable. (In the stores where they even still have seating, which another commenter pointed out.) The quality of the product is barely a step above a gas station. On the other hand, my ar…

[deleted]

Re: Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

#55

Earlier quoted context omitted.

What seems weird is that with the massive number of Starbucks closures I've seen smaller indies and local chains open up in the exact same locations and somehow make a go of it- how does that work?

Naively, a small shop only needs to pay on-the-ground workers and direct owners who may be a subset of the first group. Starbucks has to pay the regional managers and their bosses and the shareholders, etc. Also, at the mom-and-pop, no one is screaming “Why is the fourth derivative of profit increase not higher??”

Also, as with the starving artist, supply may be artificially high.

Re: Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

#57

There’s a nice coffee shop near me but they have somewhat hostile policies toward people wanting to sit on their laptops and work for hours, which makes it hard to be a decent third place. On weekends, laptops are banned entirely.

People sitting on their laptops, usually with headphones, are actually themselves hostile to third places and that's why some cafes ban them on weekends. The definition of a third place is fully incompatible with it being just a remote work location: https://en.wikipedia.org/wiki/Third_place

Fully agree.

Just watched a episode of Friends yesterday. The cafe there could be the definition of a third place. ;-)

Re: Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

#58
post #53

The study basically compared neighborhoods that received a Starbucks versus neighborhoods that did not. What if Starbucks decided to open in those neighborhoods because of some confounding factor that suggested an increase in economic activity?

> We find that, when compared to census tracts that were scheduled to receive a Starbucks but did not do so There still might be a confounders, but they at least tried to control for that.

Except how do we know that the reason they didn’t do so was precisely because of that confounding factor? It’s a neat idea but leaves one wanting for better data

Re: Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

#59

I've noticed students working in the IKEA Cafes here in Australia! They offer similar benefits to a good sized Starbucks store. Free charging points, WiFi, bench seating in secluded corners and so on. Though I'd wager that WiFi is less important, as people have mobile plans with plenty of data. Given the accommodation crises in Australia, I'd suspect many students dont have a decent place to study in their homes. Man…

Lol. I wonder if ikea cafes are similar to the restaurants in ikea.

I was under the impression they were subsidized.

Additionally, they are a "trap" - easy to enter, but exiting requires you to walk the gauntlet of products for sale downstairs.

Re: Third Places and Neighborhood Entrepreneurship: Evidence from Starbucks Cafés

#60
post #15

What I don't see in these conversations is how much increasing property prices contribute to killing third places. People get excited because they bought a house for $200k and it's notionally worth $800k now. In reality they haven't gained anything because every house is $800k and you still need somewhere to live so you still only own one housing unit of wealth. Worse, people actively lobby for policies that increase…

and lower-wage service employees cannot afford to live near work.
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