That Chain With The Green Logo

Filed under: Business Updates — Sebastian Simsch at 11:28 pm on Thursday, July 16, 2009

We get asked about Starbucks all the time. Questions range from “Where is the ‘Original Starbucks?’” to “Can I please have a ‘Caramel Macchiato’?” We can only answer the questions as they are posed and to the best of our knowledge.

The other day when I was chatting with Melissa Allison of the Seattle Times, she told me that I talked about Starbucks a lot more often than most other folks in Seattle’s independent-coffee scene.

Our old store at 111 Pike Street

The truth is, here at Seattle Coffee Works we do talk about Starbucks a lot. Not only do our customers ask us how we’re doing amid the 99+ Starbucks within three blocks of our store but we also actively study our big corporate neighbor. We often buy coffee from our neighboring stores and check out their operations. We figure there’s a lot we can learn from Starbucks (as well as other cafes and roasters).

In today’s Seattle Times article, I mentioned Starbucks’ somewhat unnerving visits to our tiny hole-in-the-wall café. Here’s the story: last winter, three separate delegations of Starbucks folks came by. Each time they filled our little store so that no one else could fit in. Usually they didn’t introduce themselves, and one delegation even lied, saying they were just a group of Japanese tourists. They didn’t buy a single drink. When we offered to make them an espresso for free, they didn’t care for it. That was really strange, for a company that says they like coffee. Plenty of other roasters, café owners and baristas stop by our store all the time for coffee. We love exchanging ideas, opinions, samples, techniques.

That’s what makes us Seattle Coffee WORKS, emphasis on the WORKS. Coffee is a work in progress, and we’re an experience coffee project, a place to explore, communicate, share our passion and fascination for coffee. Even a lot of Starbucks baristas come by. After all, many of them are curious about coffee too. Coffee is a deep subject, with so much to learn. (Did you know it’s the world’s second most traded commodity, after oil?) Starbucks corporate reps checking out the café décor but not the coffee? Go figure.

That misdirected interest among Starbucks higher-ups is one of the reasons why Starbucks will have a hard time creating a “neighborhood” store as reported in The Times.

Here are some other principal differences between a Starbucks store and an independent coffee roaster like us:

  • We’re not profitable and we never expect to be profitable. If our little coffee business can pay a living wage to everyone working here, including the folks who own and operate it, we’ll call it a success. Starbucks has to pay the baristas, the store managers, a regional manager, all the way up to the COO & CEO and a bunch of creative types doing all kinds of corporate rethinking. I do believe small businesses have the opportunity to provide better value for this reason alone. (Weighing the economies of scale versus passionate investing and re-investing into a product and an experience you love would warrant another blog post.)
  • We have a much easier time connecting personally and directly with our customers. No one’s speech is scripted or otherwise limited by corporate speak.
  • Our interior design is conceived by real people for real people; we’re not pursuing a hidden agenda of pushing more product or cutting down on our customers’ “dwell time.”
  • We love coffee, and (did I say that already?) we always want to learn more about coffee, even when that means buying a cup of it from one of our competitors.

We study and admire Starbucks for some things we have a harder time getting right:

  • Speed of service; few companies have spent as many resources on figuring out the best and most speed-inducing bar setup
  • Merchandising and labeling; Starbucks design is often really well done and it’s made to sell
  • Location location location; man, all of us indies would die to know the SBUX formula for choosing a successful location.

At the end, all of us Seattle coffee creators know that things would have been very different without Starbucks here. It created a market of people who appreciate making coffee a part of their daily routine and cafes a desirable destination. Face it, Starbucks stores are almost a neighborhood fixture, like public libraries, schools or community centers. Without Starbucks, there would be far fewer coffee places here, and we would probably sell a lot more drip coffee rather than the lucrative tall latte. Without Starbucks, Melissa Allison would probably have to write about airplanes or Microsoft Windows, and I’d be working deep in the belly of a well-known Internet retailer. So thank you Starbucks. You’ve liberated me.

Photo Credit: http://www.flickr.com/photos/chrisdag/, the original resides here: http://www.flickr.com/photos/chrisdag/3398960788/

5 Comments »

Comment by Chase

July 19, 2009 @ 11:54 pm

I very much enjoyed your list of principal differences. I’ve been immersed an the indie coffee scene since I could get away with jumping on a bus and going into the city. I never thought in a million years I’d ever work for Starbucks, but I have. Everything you cited truly illustrates why Starbucks is just not getting ahead. They get MORE corporate as time goes on. People often forget Starbucks was the original independent coffee house once upon a time. Even when I’d first joined the company, it did have a touch of that in the air.

But you walk into a starbucks, is stinks of corporate flair. When you walk into an indie no matter how good or bad it is, it always has a vibe about it, its like a living person, unqiue, different, full of feelings.

I’m actually embaressed for the people who camped out all over seattle to try and understant a genuine coffee house experience.

Comment by Gomez

July 20, 2009 @ 3:14 am

Location location location; man, all of us indies would die to know the SBUX formula for choosing a successful location.

Their formula over the preceding 15-20 years was to open a location near existing coffeehouses and then wipe them out of business. It helped that they had a decent, simple product, but really their approach to growth was similar to how cancer kills you. Once they saturated each market, then they spread out according to location and demand at their existing stores.

That model isn’t working as well for them these days (especially now that they’ve faced some cultural backlash in the last 10 years, which has allowed indy coffeehouses to grow), and so now Howard’s trying new ways to grow money, like the 15th Avenue idea.

Comment by allsburg

July 21, 2009 @ 6:26 pm

I think about a coffee shop that I would go to regularly in the mid-nineties. I lived in an area of West Los Angeles without a lot of character or ambiance. (Sure, go ahead and say it: I’ve just described all of L.A.) There was a grocery store, but no restaurants or other service establishments around. Then this coffee shop opened, and it gradually opened up the neighborhood into a real community. I met my neighbors for the first time, got to know some of the baristas, and met a ton of random and interesting people. It was the kind of place you could sit down in for hours, and no one gave you the evil eye. They had these huge, comfy chairs, and a chess board. It improved my life, and my experience living in the neighborhood. And, of course, it was a Starbucks.

Now I live in Seattle, and when I hang out in coffee shops, they are small, independent places. What I like about your blog is that you understand that Starbucks isn’t 100% evil. It sure made a difference in my old neighborhood.

Comment by Al Sterling

July 23, 2009 @ 10:24 pm

Sebastian… This move by Starbucks, and the corporate “spying”, as referred to by many, has been discussed on various coffee forums. I was hopeing to read as open and fair, and complete a comment as yours, but hadn’t found it until reading your take on the situation.

Most small shops are run and staffed by those who are passionate, and more driven by the art and science of coffee. I myself am a bit more “the business of coffee”, but can better appreciate others when they display an understanding of all three elements; the art, the science, and especially the business of coffee.

You came right out and shared that you were not driven by the same profit motive as most corporate chains. For that, I better understand the context of your comments. And the fact that you can realize the business value in Starbucks allows me to better appreciate your opinions. Thanks, Al

Comment by greenervange

July 27, 2009 @ 3:10 pm

Another pro for working Starbucks/SBC: employees only have to work 20 hours a week for insurance. That is rare. Though I often want to barista for an indie, I just can’t do it with Seattle rent and Grad school.

RSS feed for comments on this post. TrackBack URI

Leave a comment

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>