Going head to head with Starbucks.
By Bean Counter, on Saturday, November 11th, 2006
Starbucks is opening its sixth store in Lodi, California, and this time across the street from a popular House of Coffees establishment, according to Lodi News. As is often the case, the move has created some angst among locals.
Do you know of any example where Starbucks competes head to head with an independent coffee house of cafe? How does that work out? Which one do you prefer? How do they differ from each other? Let us know your thoughts in our comment section below.
I’ll start off with an indy vs Starbucks example:
One of the Starbucks stores I frequent is directly across form an independent coffee house/cafe, literally less than 50 feet away. Both places seem to be thriving, although the Starbucks stores might well be more profitable since it takes up less space and is less labor intensive. The independent cafe, on the other hand, surely makes more money per order since it sells sandwiches, salads and other lunch items. The independent cafe offers free wireless and a variety of seating options, from classic cafe small tables to comfy booths.
One interesting pricing differential is that the independent cafe charges only a buck for a small coffee, substantially less than what Starbucks and other coffechains charge. Starbucks has the better coffee although the difference isn’t huge.
So that’s my experience. Now let me know about yours!