Changes are a-brewin' at Starbucks Coffee Co.-changes that
could mean new challenges for independent coffee retailers. In an
effort to satisfy customer demand, the Seattle-based coffee giant
has introduced bigger locations in select markets.
Typical Starbucks locations provide 20 to 25 seats; flagship
stores have 50 or more seats. In addition, says Arthur Rubinfeld of
Starbucks, the larger locations feature expanded menus and the
potential for live entertainment.
To date, Starbucks has five flagship stores: two in Washington
state, two in New York City and one in Chicago. "Customer
demand in each locale is so great that to properly service our
customers, we need to provide more seating and additional service
channels," explains Rubinfeld. "We're providing more
of an experience in this retail segment than we do in our typical
stores."
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The experience may be a painful one for entrepreneurs, however.
With Starbucks offering live music, food and other features
independents have relied on to differentiate their coffeehouses
from the giant coffee chains, smaller operators could find the
competition getting hotter than a scalding latte.
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