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Is Starbucks Good or Bad for Independent Coffee Shops?

By Katherine Glover | Aug 10, 2009

Supporters of independent coffee houses love to hate Starbucks — so much that Starbucks is looking into shedding its branding in certain venues to create “local” coffee/wine bars that feel independent rather than corporate.

This is a completely different battle than that between McDonald’s and Starbucks — the indie crowd would never set food in a McCafe, or at least, not publicly admit to it.

But is Starbucks really bad for independent coffee shops? Many who were initially wary of Starbucks later learned that Starbucks and indies can peacefully coexist; a new Starbucks does not have to mean instant doom for its smaller, local competitors.

In fact, some argue that the opposite is true: Starbucks has on the whole made independent coffee shops more profitable.

The company transformed a commodity into a premium product, taught millions of Americans to spend $3 (or more) for lattes and cappuccinos, and thus spurred the growth of the specialty coffee industry.

Of course, there are other perspectives — Michael J. Golde at Seeking Alpha argues that the McCafe-Starbucks rivalry will benefit both companies by putting even more little guys out of business.

Katherine Glover is a Minneapolis-based print, radio and online journalist. She's written for Salon.com, Sierra Magazine and many others, and she does a weekly blog on immigration issues for MinnPost.

BNET User Analysis

Web Buzz:
  • On the front lines of the coffee war

    Reuters - 114 days 6 hours 42 minutes ago

    By Laura Isensee On her way to work in downtown Los Angeles, banker Teresa Roman recently picked up a large iced vanilla coffee.Her cup had no green mermaid, the iconic Starbucks symbol. Instead, it displayedMcDonald’s famed golden arches. Roman switched from Starbucks iced coffee to McDonald’s when the fast-food giantstarted...

  • McDonald's and Starbucks Battle in Europe

    The Big Money - 177 days 12 hours 48 minutes ago

    In the United States, the battle between Starbucks (SBUX) and McDonald's (MCD) is still in its "looming" stage, as Mickey D's completes a massive move into high-end coffee drinks with its McCafé stores, and Starbucks continues to struggle just to hold on to its existing clientele. In Europe, though, the fight is well under way, and...

  • McDonald's and Starbucks Battle in Europe

    The Big Money - 177 days 12 hours 48 minutes ago

    In the United States, the battle between Starbucks (SBUX) and McDonald#039s (MCD) is still in its "looming" stage, as Mickey D#039s completes a massive move into high-end coffee drinks with its McCafé stores, and Starbucks continues to struggle just to hold on to its existing clientele. In Europe, though, the fight is well under way, and...

  • Your Customers Wear Snuggies

    Where's my Jetpack? - 86 days 12 hours 38 minutes ago

    Jack in the Box mocks the McDonald's crowd in this depiction of a couple of seniors awaiting the Death Panel as they describe their beloved Filet-o-Fish as "very dependable" and "soft." Nice job on the part of JIB to portray the fast-food giant as staid and boring. You're never going to beat McD's in sales, so why not just take a baseball bat to...

  • Why McDonald's Will Crush Starbucks In Europe

    Time - 177 days 17 hours 38 minutes ago

    American management has been trained that any company can think and execute its way out of trouble. That means that there is a solution to every sales or cost problem. It is just a question of finding it and pulling the right strings to make it work. Often making the best of a bad situation is not that simple. Sometimes competition is so...

 

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