Too many Starbucks after all?

[Mr. Laser Beam]

I refer you to this picture, taken from the cover of Lewis Black's album The End of the Universe.

My question is this: Just how exactly the hell did this happen? Two Starbuckses that close to each other? Maybe I'm missing something, as I often do , but I just don't see how this could have happened. Can anyone think of a reason? How would something like this 'evolve'?

I mean, I know Starbucks is always opening up new places, but RIGHT FUCKING NEXT TO EACH OTHER? Wouldn't that be a waste of money and time and material and all that?

Ah, but you might say, what about those street corners that have gas stations on all four sides? At least then it's competing gas stations. With Starbuckses, the same company eventually gets all the money, so you'd think they'd at least try to save *some* of it...

 

[ShamelessMcBundy]

There is a Starbucks on the corner of one street near where i live and across the street and down the block, there's another one, so yes it does happen.

 

[Mr. Laser Beam]

I know it does happen. What I want to know is WHY. Does Starbucks really have so much money that they can afford to do this - opening up two stores literally across the street FROM EACH OTHER? And does it turn out to be cost effective for them in the end? I am not understanding any of this.

 

[RoJoHen]

The closest Starbucks to me is a 10 minute drive, and it's in the opposite direction of where I work, so I can never go before my shift! This town needs more Starbucks!

 

[Spot's Meow]

Having just come from Seattle I can confirm that it does indeed happen. I'm not so sure I can answer why as I am not a coffee drinker myself and so I can't understand the apparently intense appeal of the places. I think in just five blocks of walking in downtown Seattle I was in eyesight of three Starbucks and two Seattle's Best Coffees.

 

[Mr. Laser Beam]

Five blocks, I can sort of understand.

But literally across the street? Nah.

 

[Miss Chicken]

We did have a Starbucks in Hobart but it closed down. Now the nearest Starbucks is in Melbourne which is a one hour flight from here.

 

[RoJoHen]

Maybe they originally had only one at that location and it got so overrun by business that they needed to expand into a second store.

 

[ShamelessMcBundy]

I know it does happen. What I want to know is WHY. Does Starbucks really have so much money that they can afford to do this - opening up two stores literally across the street FROM EACH OTHER? And does it turn out to be cost effective for them in the end? I am not understanding any of this.

My question is: are they franchised? That can "almost" explain it.

 

[Mr. Laser Beam]

are they franchised? That can "almost" explain it.

How?

Maybe they originally had only one at that location and it got so overrun by business that they needed to expand into a second store.

Then why not just make the one location bigger?

 

[Kestra]

I dunno, there's a ton in the city, some ridiculously close to each other. Especially if you count the ones in grocery stores, bookstores, etc. They're always pretty busy here, and not all Starbucks are alike. There's one or two that are open 24 hours, there are some that are huge and others that are standing room/counter only. I can imagine that they would still get enough business, even if it does seem silly.

Edited to add:
The reason for two locations instead of one may have something to do with access. I know in the suburbs, there were some places I didn't go to if I was on the "wrong" side of the street because it was a right turn only, or difficult to get out of, or something like that.

 

[RoJoHen]

Maybe they originally had only one at that location and it got so overrun by business that they needed to expand into a second store.

Then why not just make the one location bigger?

That would have required a remodel, which may have required them to close the first store for a while. They probably didn't want to lose those sales.

 

[Amaris]

are they franchised? That can "almost" explain it.

How?

Maybe they originally had only one at that location and it got so overrun by business that they needed to expand into a second store.

Then why not just make the one location bigger?

It may not be owned by the same person. The franchise may have offered an incentive to another Owner/Manager to set up their business there, bringing in plenty of money to both coffee houses.

 

[Arrqh]

are they franchised? That can "almost" explain it.

How?

Because one could be a "real" Starbucks and the other could be a licensed store, which would mean it isn't actually operated by Starbucks.

If you see two Starbucks next to each other, they almost certainly don't have the same owner. And if they stay that way long term, they almost certainly are both pulling in enough income to stay afloat. Cause if one of them wasn't, it would close. It's a business after all.

 

[Mr. Laser Beam]

are they franchised? That can "almost" explain it.

How?

Because one could be a "real" Starbucks and the other could be a licensed store, which would mean it isn't actually operated by Starbucks.

But why would the company allow that? Wouldn't it lose money?

Then why not just make the one location bigger?

That would have required a remodel, which may have required them to close the first store for a while. They probably didn't want to lose those sales.

Remodelings don't have to require closing the place. My store was completely remodelled a few years ago and we stayed open through the whole thing.

 

[DBR]

It could be a tactic to squeeze out any competition. Futureshop/Bestbuy does it up here. Shoppers Drug Mart is doing it, (I suspect).

And if the market's there to support two locations, they aren't really cannibalizing their bottom line - well maybe they are, but it's better Joe Smith going to the competitor accross the street.

$0.03

 

[auntiehill]

Ah, yes, the End of the Universe. Yep, that's in Houston; every time we drive by there, hubby and I have to crack a joke about it.

They built one strip mall, on one side of a VERY busy intersection, and then later, built another strip mall on the other side. BOTH have Starbuck's in them, at opposing sides of the triangle.

Don't ask me why.

 

[doubleohfive]

I know it does happen. What I want to know is WHY. Does Starbucks really have so much money that they can afford to do this - opening up two stores literally across the street FROM EACH OTHER? And does it turn out to be cost effective for them in the end? I am not understanding any of this.

I'm surprised you don't know this, Mr. Laser Beam.

Years ago, Starbucks commissioned a survey and found that New Yorkers were unwilling to cross the street to purchase coffee, so they started opening Starbucks coffee shops on both sides of the same street.

Can't say as I see what the problem is. Either way, people are able to get their coffee. Myself, I prefer Coffee Bean & Tea Leaf, or some other mom'n'pop organic hole in the wall place, but having Starbucks isn't all that bad either. If only their wifi was free...

That said, the new egg white/spinach breakfast wraps are amazing.

 

[PlainSimpleJoel]

We did have a Starbucks in Hobart but it closed down. Now the nearest Starbucks is in Melbourne which is a one hour flight from here.

There are two stores here in Newcastle. Never been to either.

 

[Tom Hendricks]

Starbucks are not francised in the traditional sence. The only franchise Starbucks are the ones inside of bookstores and grocery stores. All free standing locations are corporately owned.

Starbucks are usually opened on opposite sides of each other, usually with some distance between them. They capture different groups of people, depending on commuting and what we like to call "the stayers." it is all about marketshare and who said about getting the people who won't cross the street is correct.