Friday, April 06, 2007

You Can Compete with Starbucks

I am a stockholder with Starbucks, because I believe it is a solid company with big and strong ideas to grow a business. However, I love seeing small businesses do well and grow. This is why I write on this blog and sell t-shirts. I want to encourage small coffee shops to think outside the box like Starbucks.

Coffee shops can learn a lot from the Starbucks company. Most coffee shops still are too “Mom and Pop.” There is nothing wrong with that style, but I guarantee that if it continues, Starbucks will become THE monopoly. In order to grow your business and become more consumer friendly, you need to see what your competition is doing, and right now, Starbucks is your big competitor. Here is a good example: A number of years ago, there was a coffee shop in San Diego called, “Kensington Coffee.” This place was very popular during the early and mid 1990s. They soon expanded the idea into two Great locations around town. Then something happened. Their quality, service and marketing plan began to slide downhill. They closed their two expansions and were left with the main store in Kensington. That store too became a dump. I went in one time to find flies buzzing around in the pastry display. To make matters worse, Starbucks opened up across the street. Kensington Coffee was a strong symbol of this small community for years, and then Starbucks landed. At first, I wondered what the community would do. Some people were upset and continued to go to Kensington Coffee. However, it did not take long for Kensington Coffee to begin to enter a slump of depression. This caused more and more people to start going to Starbucks.

The store about Kensington Coffee does have a relatively happy ending. They finally sold the place and began to clean house. Today, the store looks a lot different. It is cleaner and friendly. It also is still in business with Starbucks right across the Street. Any coffee shop that is unique and high quality can stay in business, even with a marketing giant nearby. Commit to making your coffee house the best it can be. Determine what you want to be known for: Great Coffee? Great Service? Great Music? Great Prices? Whatever it is, stay focused and separate yourself from Starbucks.