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Starbucks, Coffee, and Coworking

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Re: Starbucks, Coffee, and Coworking

#2
I kind of think of Starbucks as that early innovator that did a lot of footwork, (massively) introducing something new to consumers, that was ultimately destroyed by new entrants in the market. Think what AOL did with home internet access.

Starbucks made coffee not just something for adults/people who work but really brought it to a broader group of people with things like Frappuccinos. As a result, they kind of did all the R&D for competitors like McD's and Dunkin Donuts (along with everyone else that is coming out with iced coffee/coffee flavored drinks).

These competitors are able to eat into Starbucks' moat and differentiate by supplying beverages at a lower cost and supplanting it with existing food options. It puts a company like SBUX in a tough bind and I'm not sure how they're going to regain the oomph they once had.

Re: Starbucks, Coffee, and Coworking

#3
Funny, I just wrote a blog post yesterday about our extreme bootstrapping ways at Starbucks titled "Two Guys One Cup". We have free wifi because one of us has AT&T DSL at home (and you can log in with multiple laptops at the same time) and we sometimes bring seat cushions to make the chairs more comfortable. http://grubwithus.blogspot.com

Re: Starbucks, Coffee, and Coworking

#4
"Starbucks needs to do some corporate soul searching. Take a look at American Express. It doesn't sell credit, it sells membership. Coca-Cola doesn't sell soft drinks, it sells refreshment. Starbucks, what do you sell … besides coffee? What do you stand for? Ambiance? Community? Social consciousness? Until you figure this out, count on losing both customers and shareholders."

This is totally wrong. In my opinion, Starbucks knows exactly what they stand for. They don't sell coffee, they sell a "lifestyle". If Starbucks were just a shop that sells coffee, it would've never become the giant it is today. People go to Starbucks to experience the hip, yuppie, modern ambiance. Not just for the coffee.

Re: Starbucks, Coffee, and Coworking

#7

I've been thinking about opening a cafe/coworking place in SF with some friends. Which of the following would make you most want to work there? - great coffee - plentiful power outlets - comfortable seating - community (presence of other hackers/entrepreneurs)

Coffee, power outlets, a price that isn't ridiculous like the current co-working spaces in SF. Maybe some sort of programming quiz to keep out the weird "social media consultant" crowd. Also 24 hour access. Most (all?) coffee shops in SF close too early.

Re: Starbucks, Coffee, and Coworking

#8

I've been thinking about opening a cafe/coworking place in SF with some friends. Which of the following would make you most want to work there? - great coffee - plentiful power outlets - comfortable seating - community (presence of other hackers/entrepreneurs)

Coffee, power outlets, a price that isn't ridiculous like the current co-working spaces in SF. Maybe some sort of programming quiz to keep out the weird "social media consultant" crowd. Also 24 hour access. Most (all?) coffee shops in SF close too early.

Yeah, the prices are hard to justify. I don't have $300 or $400 to spend every month on top of rent money. All the co-working spaces I've visited here seem like nice places to work, each with its own individual culture and network, but the price tag is unfeasible for unfunded bootstrappers.

Re: Starbucks, Coffee, and Coworking

#9
post #4

"Starbucks needs to do some corporate soul searching. Take a look at American Express. It doesn't sell credit, it sells membership. Coca-Cola doesn't sell soft drinks, it sells refreshment. Starbucks, what do you sell … besides coffee? What do you stand for? Ambiance? Community? Social consciousness? Until you figure this out, count on losing both customers and shareholders." This is totally wrong. In my opinion, Sta…

Indeed, what's so curious about this article is that Starbucks was the poster child for selling the experience versus the coffee, and has been used in many case studies to demonstrate exactly that point.

Re: Starbucks, Coffee, and Coworking

#10
post #9
post #4

"Starbucks needs to do some corporate soul searching. Take a look at American Express. It doesn't sell credit, it sells membership. Coca-Cola doesn't sell soft drinks, it sells refreshment. Starbucks, what do you sell … besides coffee? What do you stand for? Ambiance? Community? Social consciousness? Until you figure this out, count on losing both customers and shareholders." This is totally wrong. In my opinion, Sta…

Indeed, what's so curious about this article is that Starbucks was the poster child for selling the experience versus the coffee, and has been used in many case studies to demonstrate exactly that point.

I think the idea is that, basically, the Starbucks "experience" is what city life in general now feels like for these people. Starbucks is no longer differentiating on personality, because now everything else is just like Starbucks. they need a new schtick.
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