Brothers In Blog

Prior to the tragic events of 9/11, I would say that I was a residential coffee drinker. What I mean by that is that my consumption of java was limited to a cup in the morning before heading to work and then another cup after dinner. If my wife and I decided to indulge in some overpriced dessert at our local eatery then I might wash it down with some more joe.

What happened after 9/11 that changed all that? Well, the family business I work for had decided to demolish a small strip mall they owned and build a 5-story office building it its place. Once complete, we would move out of the family’s former home heating oil business building that adjoined the property and take residence in our new digs on the top floor. When 9/11 occurred, the steel frame of the office building was nearly complete and it wasn’t soon after that our nation’s economy came to a slow crawl. We feared that with everyone drawing into their shells we were going to be left with a beautiful building but no tenants. Guess who was the first to open their doors to the public from one of our street-front shops? Correct — Starbucks.

When I heard Starbucks was going to be downstairs, I scoffed and told my fellow workers that there was no way I was going to waste my money on their high-priced refreshments. Curiosity got the best of me though and I would join one of my peers on a stroll to Starbucks and get an occasional Grande Decaf with room (only a $1.81). That occasional stroll has become a regular weekday morning habit and the only change I make to my order is switching to Regular instead of Decaf depending on the brews and bringing my own mug to save another 10-cents. During the southern summer months, I supplement my morning jolt with an occasional afternoon Frappucino. At nearly $4 for a Grande size, a daily dose would force me to scale back my 401k contributions.

As I got more familiar with Starbucks products and their marketing, I seemed to pick up more on remarks from anti-Starbucks individuals. The jest of everyone’s contempt for Starbucks was that Starbucks was somehow responsible for the neighborhood java joint closing its doors. As I said earlier, I work for a family business, which is quite successful. I have also worked for simple mom and pop operations that started off well but eventually went belly up. In all of those closures, the reason was the same: poor business sense.

When another business comes into town offering the same type of goods or services it creates competition where there once was none. In this case, Starbucks does its research on an area, finds the right location and sets up shop. If Surfer Joe’s Kawabunga Koffee does nothing when Starbucks arrives he’s a fool. Unfortunately, many such businesses do just that. They assume the locals are going to thumb their noses at the new guy and keep coming back to familiar stomping grounds. The reality is, like me, residents are going to get curious and check it out. They may not take all their business to Starbucks but a cup here and there spread out over Joe’s customer base is going to make a difference.

Now, I like Starbucks coffee and other offerings, but not all of them. They might sell pastries and desserts, but I have other favorite merchants for those. When it comes to customer service, Starbucks has it down to a science. About 90% of the Starbucks I’ve been in have exceptional service and I’ve rarely seen one of their employees wearing the infamous post office “I hate my job” face. While being a regular patron helps, most of the staff recognize me and know what I want before I order. There have been many times that I came down for my 54-cents refill and was told it was “on the house”. The staff knows their products and will go the extra mile to help Starbucks newbies with their order or perhaps suggest a new drink to a veteran. Another reason for the smiles at Starbucks is that they make affordable healthcare benefits available to employees who work as few as 20 hours per week. Someone needs to pass that secret onto Wal-Mart but that’s another article.

The company promotes community involvement and I’ve personally witnessed one of their staff spending company time reading a storybook to a small group of mentally challenged children (did I get that politically correct?) in Starbucks while they sipped on free Strawberries and Cream drinks. During the warmer summer months, my local Starbucks has small local acoustic bands play outside for both patrons and non-patrons to enjoy. Maybe all this sounds like a bundle of warm and fuzzy pro-Starbucks propaganda, but it’s my experience. Now, we want to hear from you “good or bad.” Is the Starbucks’ mermaid Darth Vader in disguise, or is this successful marketing at its finest?

Bret’s 2-Cents:

Without question I am a Starbucks fan! I love their coffee, appreciate their commitment to service, and admire the companies generous benefits package (not nearly as “generous” as Google but far more universally appealing). Unfortunately, Starbucks often gets tagged as the coffee shop version of Wal-Mart. That categorization couldn’t be further from the truth. The primary complaint that people have against Wal-Mart is that its buying power enables it to undercut competitor’s pricing, driving competition into the ground. Starbucks is quite the opposite. According to a recent CNBC special focusing on Starbucks, CNBC found that Starbucks was normally higher priced than the local competition. That statement begs the question, “How is Starbucks putting the little guy out of business?” Simple, Starbucks knows its business and knows how to do it right. They are NOT an evil empire!

Now, all that being said, where is my decaf mocha grande with skim milk and a double shot shaken not stirred latte?