On Friday news broke that Starbucks are closing around the state, including the one in Somerset. But have no fear, latte loving hillbillies can still get their Yuppie caffeine fix on, and the answer how may tell you a little something about why Starbucks is facing such pressure.
You see, Starbucks created a wonderful experience tied to a terrific beverage: the coffee shop atmosphere with lots of pastries, terrific new ways of drinking your coffee to the last drop, and the office-away-from-the-office thanks to wireless internet. A wonderful business model, there’s just one problem: it’s not very defendable.
Starbucks found their model being knocked off by thousands of mom and pop shops around the U.S. Unlike national chains like Wal-Mart, which relied on massive economies of scale, or McDonald’s, which managed to build brand ID superior to everyone in on earth, Starbucks became just another fancy coffee option. Some folks love Starbucks Coffee, but some loved another brand better… and a place with a more down home feel to boot.
Like this place, (hat tip Mark Sievers) Baxters' Coffee in Somerset:
“[W]ith three locations to serve you in Somerset, Kentucky. We proudly offer the finest gourmet coffees, full espresso bar, muffins, scones, and cinnamon rolls baked fresh daily in our kitchen, as well as gourmet soups, salads, and sandwiches at lunch. Come visit us at any of our locations – experience the coffee shops that were voted BEST COFFEE SHOP IN THE STATE OF KENTUCKY IN 2005! In the morning, catch the morning rush and see your favorite friends on your way to work. Come in during lunch to have lunch with your coworkers and enjoy a fresh lunch. Use our free wireless internet and grab an afternoon pick me up to pull you through the day.”
Three full service espresso bars in Pulaski County, Kentucky! Starbucks may have opened the gates, but many are following. The Starbucks example should be an important lesson to entrepreneurs and those who coach them.
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