The hated Starbucks

Good article on how Starbucks actually helps other coffee shops increase their profits on MSN.com. Someone I know that wants to get into the coffee shop business has hated Starbucks for their aggressive ways, along with all other capitalistic ideas. I've repeatedly told her that I know there is a way for others to compete with Starbucks. I suppose work and creativity are at a loss on this idea.

Nevertheless, this article posts very interesting stats:

57% of coffee houses are mom & pops.
From 2000-2005, there was 40% growth in mom & pops.
There is only a 10% failure rate in start-ups.
In 2000, when Omaha opened six new Starbucks, other coffee shops' profits rose 25%.

Here's what has happened. Starbucks is notorious for driving out competition, especially by offering to buy out leases of those coffee shops that are behind and having problems making it. For those that are doing alright and are in somewhat good shape that decide to ride the tide, their profits rise considerably when a Starbucks opens up close to them. Reason being, Starbucks has taken on the feat of opening two of their own stores around the corner from each other because of traffic overflow. If they can do that, why can't someone make money off Starbucks while they open in close proximity?

The key is not trying to duplicate Starbucks, but offer a quality coffee that is a little less expensive. If Starbucks (they strategically place their shops close to highly traveled areas) can compete with themselves, then it's great for others to do the same.

So much for the defeatest attitude. It's a new year, let's think positively!