On the other side, starbucks don't need that type of advertising now and a small\upcoming shop can't afford that kind of advertising.

This idea is also business specific. Can restaurants afford whole day sitting customers? No, I think

"You walk into a retail store, whatever it is, and if there's a sense of entertainment and excitement and electricity, you wanna be there."

“We’re not in the coffee business — we’re in the experience business”

If you consider that the largest cost is probably rent, then people sitting around probably add only a tiny amount more. It's only an issue if the shop happens to be be full and there are other customers who wanted a seat.

That person sitting there is probably doing Starbucks a favour. People are more inclined to go somewhere where there are other people.

As comments further down noted, there are two types of coffee customers: (1) get it and leave & (2) spend time in a coffee shop.

Where (1) breaks down is basically if you don't have access to a Starbucks on a commute. Which to me is a particular type of customer: lives in a city core, bikes or walks to work / uses mass transit. These are the type of customers Starbucks can't really afford to chase. They're designed as a stop when someone is commuting in from the suburbs via car.

Deliver a high-quality, dependable (key!!), possibly cheaper product right in front of a rail or transit stop? Bob's your uncle.

Good luck!

PS: Step 2: ? Step 3: (Get bought by Starbucks and profit!)

First, congratulations on your launch! I hope to try Wheelys out soon!

A bit of well-intentioned feedback regarding your positioning strategy: as I am often the customer you mention who sits at Starbucks (or other coffee shops) all day, I can assure you that the owners don't perceive me as a cost even though I don't buy much (I often speak with them and ask about life as a small business owner). In fact, at locations I often visit, it's very common (say 1 in 3 visits) for the managers to give me a tiny freebie. Maybe I'm just a likable guy, but I don't think I'm so charismatic as to completely warp their perception of me being a drain or a benefit.

I think one important point is that I make sure to buy something any time I'm taking up space and the place is crowded (say 70+% fill rate on seating space). But that's at most 2 hours per day (the morning pre-work rush and the lunch rush). In those peak hours I would agree that I am taking up valuable real estate and should contribute something to their upkeep.

Anyway, congratulations again and I hope to see one of your sites soon!

That is why the 'owner' doesn't care.

That doesn't change the fact, raised in a sibling comment, that given the fixed cost of rent, having someone in the shop during off-peak hours is in a sense "advertising" the desirability of the place. Trickle revenue + "advertising" using up slack capacity seems like a clear win for them, given the pre-existing real estate investment.

Interesting. Then how come there are so many non-corporate Starbucks outlets? The ones that don't get the same new products and don't take their gift cards -- like airports, for example.

Agreeing with you, I'm pretty sure there's no way for an individual to open their own Starbucks store; the licensed stores pretty much have to exist within a larger organization where it would be impossible to open a store independently (in the local cases, that'd be due to the food service unions).

In Canada at least, there's also instances where Starbucks has worked out some kind of cross-renting deal. Chapters/Indigo Books is a prime example. Every Indigo I've gone into has had a Starbucks, but those are staffed by Starbucks employees and not Indigo employees.

Presumably Starbucks has calculated this. There's new one near me on 53 and 3rd that has plenty of sitting space, and the food is arranged differently (more like Pret I guess). And there's a sign posted outside that anyone can come and sit without having to make a purchase. The coffee shop is, for many people - especially those starting a company or working on their own - their office.

The only reason I drink Starbuck's overpriced bitter coffee is because they have been kind to Anyone who walks through their door.

They have allowed anyone(including the homeles) to use their restrooms. Although I think that's starting to change? Watch it Starbucks--some of us notice those Managers who take their job too seriously, like its their bathroom.

I go to Starbucks because of the welcoming environment--period. I don't like anything they serve. I could go to the coffee shop across the street(the Coffee Something), but I remember the time they asked my friend to leave. (He looked homeless, but was worth a few million dollars.)

I will never forget that day, "You get outa here, you don't spend money!" He was actually one of their better customers, but this particular day, the owner was filling in for a employee. He never went back. My friend easily spent $4/ day, and he was there 4-5 days a week. RIP--RBB.

... I don't think this is the success story you want to paint it as. Who cares if he's a millionaire if he's only purchasing $4/day? If a retail shop is reliant on a customer worth a mere $4/day, then it has serious problems.

And if his presence discourages other patrons or consumes space that other paying patrons could have occupied, it's a drag on business. Sure, having an empty shop is a problem because it makes you look unpopular, but conversely, having a full shop of people who aren't purchasing anything is equally bad, because it blocks people who do want to purchase.

Why not back this company to, you know, sell good coffee and be a success on its own terms?

Actually we go for the coffee. But there is something to be said for the store experience of Starbucks, it is high-class and delightful, compared to something like Dunkin Donuts.

there is better and cheaper coffee elsewhere, even McDonalds

People who can't taste the difference between McDonalds' coffee and Starbucks, are not in Starbucks demographic. For the price, you can't get a better cup of coffee, unless you're willing to roast the beans yourself.

With that said, the key issues with Starbucks, are long lines, high prices and the wi-fi squatters. I seriously doubt that a cart based coffee stand can address all of these issues.

I, however, do go to Starbucks to be one of your problems: I'm a wi-fi squatter. I'll go in, get an Americano and sometimes a breakfast sandwich, and sit and work until lunch time. If it gets busy and there's no tables available, I'll leave early.

I get the impression that the organization doesn't see us as a problem though. The Starbucks closest to my house wired in extra outlets so that there's a row of tables with 2 outlets per table. I'm on a first-name basis with all of the staff, and we have deeper conversations beyond "how's your day? good. good."

There is lots of better coffee nearby in my town, but I go there pretty much 100% for the welcoming atmosphere. There's a place that's across the street from a Starbucks with little signs on the tables that say "If you're staying for longer than 45 minutes, please make another purchase." I don't go there very often; we obviously don't have compatible desires from the exchange.

The 'McCafe' or whatever they call it espresso-style drinks are pretty poor.

However, most McDonald's offer free wi-fi that's usually faster than Starbucks, usually don't have many people in them, and don't mind you sitting around for a couple hours working on stuff. Bonus, they have a better menu of stuff to snack on than Starbucks.

They also source their beans from Gaviña, a well considered supplier, who I believe does the roasting as well.

That said, I hate Starbucks coffee. I'm sure their fancy, sugary drinks are better (and the reason people prefer them to another coffee place) but as far as just black coffee goes, Starbucks is terrible.

Dunkin Donuts is better (particularly the dark roast) and I also enjoy the new McDonald's coffee (although it seems to depend on location, some McDonald's seem to be better than others).

This is a sweeping generalization. Coffee, like food, is a vastly subjective experience.

>> Most people can probably grab coffee at work for free if they wanted to but they choose to go to coffee shops for the "cool factor", and to feel like they are taking a break from their normal routine.

Who are these 'most people' are why are we making assumptions about where the get their coffee from without a research or a survey citation?

I'm sorry, I don't intend to be mean spirited here, just that I've been increasingly seeing seeing comments here that appear well thought out and well written on the surface but are peppered with logical and factual fallacies.