Is Starbooks actually good for business at Mom and Pop coffee shops? I did some catching up on Slate today, and came across this article on the subject. Clark makes an interesting point/argument. His premise is that Starbucks moving into the neighborhood increases business at ALL nearby coffee shops, thus being good for business at any independent in the area. An interesting observation, to be sure. One question that goes unanswered is why exactly is there so much business generated? There is a brief mention that Starbucks gives people that want coffee a destination, but the concept is not fully developed. Is all of this business new business generated by interest in and marketing by Starbucks? Is Starbucks providing a focal point for people that would normally grab coffee at the gas station, McDonald’s, or other random places rather then an establishment that specializes in caffeine? Likely it is some combination of the two. It would have been nice to see this addressed, though. Saying that the Starbucks neighbors see an increase in business due to lineups out the door begs the question as to why exactly those lineups are forming.

Slate: Don’t Fear Starbucks – Why the franchise actually helps mom and pop coffeehouses.
By Taylor Clark