Bridgette Glass
Professor Kerr
EN101-9
22 Oct. 2012
The Starbucks Effect
From light foamed cappuccinos, to the strong shots of espresso that give a strong caffeine kick, Starbucks Coffee Company has been a chief element that introduced specialty coffee to America. Most consumers believe that Starbucks has eliminated independently and locally owned coffee shops. What most consumers don’t know is Starbucks has done the exact opposite. The effect Starbucks has had on America has not only been providing a caffeine kick, but Starbucks has also promoted independent, specialty coffee shops. Increasingly in the past ten years, Independent coffee shops have been promoted in business by Starbucks by, familiarizing Americans to specialty coffee drinks, increasing population across nation’s small coffee shops, and supporting the local community coffee shops.
Mark Elton in his article about Starbucks coffee states; “In the United States, large cities that are influenced by European immigrants have become hotspots of coffee culture, as have college towns and resorts like the Berkshires. Thanks to corporate chains like Starbucks, coffee has become a popular beverage in all parts of the country.”(http://www.scribd.com/doc/3264031/Starbucks-and-Coffee-Culture). Starbucks has familiarized many Americans to specialty coffee, by coming up with delicious ways to serve a good cup of caffeine. Ever since Starbucks has familiarized specialty coffee to Americans, the regular black coffee has been consumed about half of what it as fifty years ago (http://www.pouregon.com/oregon-coffee/starbucks-vs-the-independent-coffee-shop/). Fifty years ago, most all Americans were only familiar with the old-fashioned black coffee. Most consumers were not aware of the elaborate frothy lattes that we guzzle now. Ten years ago, only 3% of all coffee sold in the United States was premium priced. Now, at least 25% of brands are sold at premium prices (http://hbr.org/2000/03/the-starbucks-effect/ar/1). The expansion of our specialty coffee has increased exceedingly. The specialty coffee drinks give a sense of luxury to Americans in a rather affordable way. Consumers that need that extra kick of caffeine; will spend $2 up to $5 for a venti latte with extra espresso or special blend of ingredients at Starbucks. Starbucks is generally more expensive than local coffee shops. Local customers that go to Starbucks, tend to explore out on to cheaper, less crowded, and higher-quality small locally owned coffee shops (http://www.slate.com/articles/news_and_politics/hey_wait_a_minute/2007/12/dont_fear_starbucks.html ).
Due to Starbucks introducing specialty coffee to Americans, independent coffee shops have become even more populated in size and in customers. Steven Benharris states, in his article Starbucks Has Its Buzz Back, “Starbucks provides more than coffee; they provide a comfortable place to relax that is perhaps even trendy at times. Many business meetings as well as personal meetings, for a wide variety of reasons, take place in Starbucks.” (http://seekingalpha.com/article/195256-high-conviction-starbucks-has-its-buzz-back). Customers just enjoy coming into a coffee shop, feeling at home, and smelling the java aroma in the air. The environment Starbucks has created has set a high standard for local coffee shops. Many local coffee shops duplicate Starbucks environment which has helped attract many customers. In the past few years, local coffee shops have increased 40% in popularity. Local coffee Shops have also expanded in 4,200 locations, and are increasing even more yearly (http://www.slate.com/articles/news_and_politics/hey_wait_a_minute/2007/12/dont_fear_starbucks.html). In American 57% of the nation’s coffee shops are still independent coffee houses (http://www.slate.com/articles/news_and_politics/hey_wait_a_minute/2007/12/dont_fear_starbucks.html). The small coffee shops are still flourishing even with the big Starbucks Corporation competition. Starbucks has not only maintained their own success in business, but they also positively affected and influenced the local coffee shops in popularity.
Whenever a Starbucks shop opens up nearby a local coffee shop, there is an attraction of specialty coffee lovers. Most individuals assume that when a Starbucks opens nearby a local coffee shop, they assume Starbucks will steal all the business, but this assumption is just the contrary. Once Starbucks shop becomes a busy, crowded, and loud rush, customers tend to branch out to the quiet and relaxing local coffee shop. Once customers explore out to that coffee shop, they tend appreciate those locally owned coffee shops'. Local coffee shops tend to be on a more personal side than a big corporate owned Starbucks. The consumer also realized specialty coffee drinks are significantly cheaper at a local shop than at Starbucks (http://www.slate.com/articles/news_and_politics/hey_wait_a_minute/2007/12/dont_fear_starbucks.html). The coffee shops tend to feed off of each other and circulate their customers (http://www.pouregon.com/oregon-coffee/starbucks-vs-the-independent-coffee-shop/).
Ultimately, Starbucks has a huge effect on small locally owned coffee shops. Starbucks has promoted the small coffee shops to become more populated, familiarized, and a boost locally. Small coffee shops have been prospering ever since. Fifty years ago specialty coffee wasn’t known, and now Americans need their fill of their specialty coffee. Starbucks has provided such a high standard of coffee to America. Thanks to Starbucks, local coffee shop owners can prosper just like Starbucks and pursue their passion of specialty coffee perfection.
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