photo credit: Erika Schultz / The Seattle Times

Starbucks is up to some trickery and it could cost them some customers. The Huffington Post reported how the coffee giant has “unbranded” one of their Seattle stores to give it “a community personality.” It sounds like Starbucks is trying to capitalize on the trend to buy local and get back some of their lost market share. It might be because consumers perceive the local mom and pop coffee shop as cheaper, but just as tasty as Starbucks. One reason might also be the trend to buy local in an effort to support your local economy.

I asked consumers if they’d be more apt to buy from a local café or Startbucks? The majority (44% as of this post) said they do try to buy local when they can. The remainder of the respondents were divided (almost equally) between Starbucks, other chains and brewing their own.

[You have until 08.07.09 to add your vote.]

This deception by Starbucks is wrong.
Look at the sign for the new store above. Their use of the word “neighborhood” is misleading. If Starbucks really wanted to help the community (or gain community), they should do it openly and honestly.

Here are some better ways they could connect with the community:
1. How about partnering with a local shop and doing a sort of co-op? Wouldn’t that give them a better wrap and cause people to return to the Big Brand once their paychecks pick up again?
2. Serve local fare. Allow smaller, family run local bakeries to rent out space to sell their baked goods and lunch fare.
3. Sell fresh fruit from local farms.
4. Display and sell artwork from local artists.

Starbucks should consider their roots. They once were a local shop, too, that happened to be so likable they decided to grow their business. What was it that made them so attractive to the locals to begin with? Yes, it could be the “local” draw.

With the Starbucks trickery, they might potentially see an increase in sales at the disguised 15th Avenue Coffee and Tea. But once patrons find out the shop isn’t really who they say they are, Starbucks just might lose some customers for good.

Steph Jorgl told me why she buys local:

“I tend to buy local – especially if the café states something like “locally grown” on the outside. There’s a café like that with amazing coffee right by my house in San Jose called Roy’s Station. The place is a piece of history, the coffee and the atmosphere there are amazing, and they serve their coffee in real glasses if you’re dining in. There’s a certain feeling you get drinking coffee from a real glass or mug, and there’s also certain art to the preparation and presentation of every Roy’s mocha. They take pride in their coffee and are kind to their customers, a feeling I don’t get from every Starbuck’s barista. However, I have to admit that if I’m in a rush and in the car, I’m a sucker for the drive-through Starbuck’s by my house!

It could be little perks that Starbucks needs to continue to keep their market share and attract new customers, though. Jay Bain told me:

“One thing that has me more likely to walk into a Starbucks these days is (more) seamless free ATT WiFi for my iPhone.  Although most local cafes offer free wifi these days, the ‘instant-on’ effect is gratifying.“

Would you still buy from a “local” place if you knew they were owned and run by Starbucks?

Sarah Jo Sautter