Wednesday, January 2, 2008

Starbucks' Real Impact?

A college friend came up for a visit on Friday night.

We had a few minutes to keill before heading over to Haverhill to catch the 9 p.m. showing of "I Am Legend" at Chunky's. (Movie was all right. Venue is great.) So I have him the quick car tour of downtown.

He had some very nice things to say about our fair downtown, but the one business that caught his eye was our very prominent Starbucks.

My friend, Chris, isn't the biggest Starbucks fan. He once resented all that it represented: highly paid professionals who tossed aside Big Ones from his beloved Dunkin Donuts' for a more expensive, sometimes more acidic blend. His opposition has softened a bit over the years.

But he was wondering how Starbucks ended up in Newburyport and how the locals reacted to having such a despised chain in town.

I explained that Starbucks created a bit of a furor when it came to town 10 years ago and the resentment hasn't entirely gone away since some folks in town wanted the city to ban other chains from opening shops in town.

I then added that I don't think Starbucks hurt the local coffee scene at all. In fact, I feel there are more places serving good coffee today than there were a decade ago. I can't credit Starbuck's with injecting this city with a love of good coffee. That would have developed anyway. We're just that kind of town.

The conversation led Chris to email this article from Slate. I thought I'd share it with the class.

Clearly, the same theory can't be applied to all chain stores. But it's something to think about.

7 comments:

Anonymous said...

I think that this story represents a common thread I've seen in people's response to chains and economic change in general.

There is a first-order thought process that sees the chain as a threat to local businesses based on some seemingly insuperable competitive advantage the chain must have. It causes people to miss second and third order benefits associated with the chain. In this case, the chain actually attracts a larger total market.

Ironically, zoning ordinances that keep chains out can hurt the town as badly as the supposed invasion of the chain store.

If we assume small businesses cannot offer as good a shopping experience as a chain, then doesn't it follow that Newburyport will lose its shoppers because of an inferior experience? Conversely, if we assume that small businesses offer superior value to the chain, then why do we need a zoning ordinance to protect them?

It seems to me that those who would impose a chain ban could not really predict the complete impact of their policy.

Anonymous said...

I couldn't agree more with your comments about Starbucks. I remember the panic that set in when they opened, and now the coffee biz in town is better than ever. It is interesting to note that the 2 main coffee houses in town when SB opened, Middle Street and the Atlantic Roaster ( at Fowles),closed for other reasons that Starbucks invading downtown.
Although I have nothing against Starbuck, except I don't much care for the taste of the coffee, I perfer to get my caffeine from local merchants.
In their defense, I think they fit in that location better than a full size Dunkin Donuts would have.

Ari Herzog said...

I have yet to read a Slate article with bad reporting, so kudos for sharing.

On Starbucks and their ilk, I gave up drinking coffee over three years ago and never looked back. That's not to say I don't frequent coffee shops, but I go for hot chocolate, chai lattes, and assorted teas.

Take a chai, for instance. I've walked around to the downtown shops that make chai and Starbucks is the winner for cost, low sugar content, and overall taste. (Dunkin Donuts' chai is sugar central, Caffe di Siena's chai is OK but too small for the price, PI Coffee Roaster's chai has an odd taste I can't describe, and Fowle's chai lacks any taste. Of notable mention is Souffle's chai which is not too bad and of reasonable cost, but I digress.)

Tom Salemi said...

(car commercial disclaimer voice)

Opinions expressed in these comments do not necessarily represent Newburyport Posts or its affiliates (if we had any.)

I love coffee.

Anonymous said...

Starbuck is nothing compared to what I just read: "So I have him the quick car tour of downtown", didn't we all agree a long time ago that the best way to see Newburyport was by foot or on a bicycle? :)

Happy New Year btw

Tom Salemi said...

Heh, I knew I was opening myself up for a shot with that one. Thanks

Anonymous said...

I love both SB and PIR ambiance. I'd love to see SB a bit bigger w room for a couch like PIR.

Also I'd love a little corner with a guitarist occassionally like the old student coffee houses on Charles St., Boston back in the days of the Beat Generation.

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