Why Starbucks?

Grace West
Nov 5 · 7 min read

How many times a week do you find yourself waiting in Starbucks for an overpriced cup of mediocre coffee? Maybe you’re waiting for a $6 grande latte or caramel macchiato. In fact, one out of three Americans drink a gourmet coffee beverage each day. People across the globe are addicted to caffeine. Much like alcohol or drug addiction, statistics show that caffeine addictions include intoxication, dependence, and withdrawal symptoms. Therefore, it’s inevitable that Starbucks has a store on nearly every street corner. In 2018 alone, Starbucks’ revenue was $24.72 billion. The industry’s yearly revenue grew over $20 billion from 2003 to 2018. Starbucks basically created the American coffee shop, and their market dominance pairs strongly with their aggressive expansion strategies. It seems, to me, that Starbucks has taken over the coffee world.

Perhaps the design of each Starbucks creates a magnet that draws customers in. Each Starbucks is similar in overall feel of the shop, but every Starbucks varies in one way or another. They are designed this way on purpose. James Gilmore writes, “It was this modular approach that would allow Starbucks to expand into hundreds of thousands of locations while avoiding the cookie-cutter sameness.” Starbucks as a whole certainly has its signature feel, but designers found a way to make each store vary in ways such as light fixtures, furniture, and artwork. I believe this contributes to how Starbucks has grown into the largest coffee industry in the country. People are drawn to familiarity but also don’t enjoy cookie-cutter sameness; therefore, Starbucks embodies their happy medium.

In addition to design, Starbucks has a variety of customer incentives to keep coffee lovers coming back. Their rewards program allows customers to gain “stars” every time they use the Starbucks app to pay. Once the customer reaches a certain amount of stars, they are gifted one free drink or food item. The loyalty system has tiers in which customers are lured into buying more items to reach a higher level of rewards and move from the “green card” to the “gold card.” There is also a deadline: members must gain at least 300 stars in a year’s time to ensure their gold card status. Our generation is always in a hurry and is becoming increasingly more impatient by the day; therefore, a quick scan of a barcode on your phone that pays for your order without even pulling out your wallet is a smart way to speed things up for Starbucks customers and employees. It also comes at a very low cost for Starbucks.

What most people don’t realize are the effects Starbucks has had on local coffee shops. Statistics show that over 50% of all independent coffee shops will fail in the first five years of business. I can imagine how hard it is for local shops to compete with the most popular coffee brand in the United States especially when there are over 14,300 stores nationally. How can these stores compete with that famous green logo? Clearly many coffee entrepreneurs have failed, but I’m here to encourage you to help lessen that whopping 50% of new coffee shops that will fail: go out and buy a cup from a local shop.

Some people are so used to holding that white Starbucks cup with the famous green lady logo. Perhaps that very white cup has become a status symbol rather than a good cup of joe. I must admit that I’ve gone to Starbucks before out of convenience and knowing that the coffee is going to taste exactly like it did the last time I drank it. Do you know why Starbucks coffee always tastes the exact same no matter what city you’re in? They burn their beans to ensure uniformity. That white cup doesn’t seem so appealing now, does it? Starbucks does this as a financial incentive: they don’t have to buy high quality coffee because their coffee will always taste the same. This promotes customer loyalty because each cup of coffee tastes familiar to them.

Compared to twenty years ago, there’s now a greater demand for coffee shops in America. People use coffee shops as a space to work, whether schoolwork or job work, which hasn’t always been the case. In 1991, there were only 1,650 specialty coffee shops in America; In 2015, there were 31,490 counted. Cassavoy writes, “Coffee shops are increasingly being regarded as offices away from home for many entrepreneurs and self-employed people… local coffee shop offers multiple conveniences and can save money.” More and more people are using coffee shops as much more than a space to solely drink coffee. People take advantage of the free Wifi and space rather than renting office space. Every time I go sit in a local coffee shop, there’s always at least one customer with a laptop or textbook in front of them. I asked five of my college friends if they’ve studied in a coffee shop at least once in the past month, and all five of them said yes. Coffee shops have become a large advantage in America, so let’s drink local and help startups stay afloat.

I believe people are missing out on what local coffee shops have to offer. Each shop is different with its own character, space, and regular customers. In my experience, the employees are warm and welcoming. The pace is slower, sure, but it means I can get more work done. It also feels nice to know I’m supporting a local business.

Hayley Ice, a regular coffee drinker, stated, “I feel welcomed at Chocolate Holler (a local Lexington coffee shop) because the workers ask me how my day is going before I can even order my drink.” I agree with Hayley. Each time I walk into Chocolate Holler, I’m greeted as soon as I walk into the door. Employees take an interest in how my day is going and genuinely want to know a little bit more about me each time I come in. The atmosphere is quieter yet friendlier. The employees enjoy their jobs and enjoy getting to know their customers. The coffee has fruity and rich flavors rather than Starbucks (somehow) famous burnt flavor. Chocolate Holler also has a phenomenal twist to plain old coffee: they offer an assortment of flavored hot chocolate that customers can choose to add espresso to. Therefore, they target not only regular coffee lovers but also sugary coffee lovers. The Chocolate Holler owners (also owners of A Cup of Commonwealth) share their purpose on their website: they aim to embrace the community, honor culture, and stand for service. If you’re a local Lexington resident or ever find yourself in Lexington, I highly recommend trying out Chocolate Holler.

Hazelnut Hot Chocolate with espresso at Chocolate Holler in Lexington, KY

Barista Social, another local Lexington coffee shop, is a great place to get caffeinated while doing homework, working on a project, reading, meeting friends, or simply just relaxing. The large wooden tables, comfortable chairs, modern light fixtures, and high ceilings create an aesthetic atmosphere. The space is fairly large and brand new. Each table has its own glass bottle of tap water and glasses to drink from. The friendly employees are willing to answer any of your questions and offer suggestions as well. Barista Social gets their coffee beans from award winning coffee roasters such as Little Wolf and Switchback. Their coffee, like Chocolate Holler, has a delicious fruity flavor. Tyler Gore, employee at Barista Social, explained, “Local specialty coffee shops value the actual quality of the coffee over the consistency of it so we can make it the best we can. Also, the atmosphere at a local shop feels more intimate and special. When people choose to come back in time and time again, it feels like we’ve done something right and established a connection with them.” I love how Tyler explains that the shop is not just about coffee; it’s about building connections and relationships with regular customers. The social and communal aspect of coffee cannot be accomplished at large chains such as Starbucks.

Photo taken at Barista Social in Lexington, KY

Overall, I’m not condemning you for going to Starbucks. I go to Starbucks from time to time unashamedly. I do encourage you to question whether you go to Starbucks because you genuinely enjoy their drinks or because it’s just the only close coffee shop you know of. Do some research about local coffee shops in your community and go try a few out. Who knows, you might just find your new favorite cup of coffee or maybe you will get to know the baristas. If coffee is a daily aspect of your life, build a community around it and try new things. Drink local!

Grace West

Written by

University of Kentucky

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