Studies Show Starbucks Coffee Knowledge Helps Small Coffeehouses Thrive

About a year ago Business 2.0 Magazine did a cover story on the fact that Starbucks has actually helped the independent coffeehouse thrive. As someone who studies economics and community planning - I know this to be true but it is great to hear from actual coffeehouse owner stand up and say "we are hear because of Starbucks". So for all the folks that moan about Starbucks being the ruin of the small independent coffeehouse - get your facts correct. The truth is that Starbucks created a coffee knowledge for the general population, which has resulted in more people seeking out other coffee experiences. On another note - a persons choice top visit a Starbucks' versus an independent coffeehouse is the not the fault of Starbucks - but rather the choice of the individual. So if you don't like Starbucks coffee - then don't buy coffee there - end of story.

Below is the test from the article written by Allison Linn/Associated Press.

In Starbucks' shadow, smaller coffeehouses thrive

By ALLISON LINN / Associated Press

It's hard to find a bad cup of coffee in Seattle, and that's not just because it seems like there's a Starbucks — or two or three — on every corner.

Although more than 100 of the ubiquitous green awnings dot the big coffee corporation's hometown alone, local favorites such as Zoka Coffee, Diva Espresso and Caffe Ladro are proving it's possible to survive and even thrive in the shadow of their much larger corporate competitor.

As other towns worry that Starbucks Corp. will run their local favorites out of business and rob their streets of quirky charm, the owners of several of Seattle's most beloved independent coffee houses say they have found success by going the opposite route of their big competitor — making a selling point of being small.

"We try to stay a little more neighborhood, we try not to be too corporate," said Steve Barker, co-owner of Diva Espresso. "We don't upsell and we don't — we're not mega.m.erchandise stores. We just try to sell coffee and pastry."

But while Barker and others may toss small barbs at their bigger competitor, they also are the first to note that Starbucks pioneered the idea of paying up to $5 for a cup of joe, paving the way for them to follow.

"Starbucks is the best thing that ever happened to coffee," Barker said. "Without Starbucks, I don't think any of us would've survived."

The coffee giant also provides a convenient foil for companies such as Diva and Zoka, who point to it as the antithesis of the artisan coffee and quirky feel they seek with the scruffy floors, mismatched furniture and local artists' work that typify the smaller chains — and, in some ways, feed their success.

For its part, Starbucks says that it doesn't do anything to discourage smaller coffee stores.

"Starbucks has kind of raised the coffee awareness in the United States," spokesman Andy Fouche said.

Indeed, Zoka owner Jeff Babcock said he was inspired to get into the coffee business after coming across Starbucks while he was a student in Seattle in the late 1970s. At that time, Starbucks was still a tiny company, mainly known to local residents who frequented its landmark store in Seattle's Pike Place Market.

"They had something that was special," Babcock remembers.

But by the time Babcock opened Zoka in 1997, after a stint in the coffee business in Florida, Starbucks had grown more institutional. He wanted Zoka to have that something special that he remembered from Starbucks' early days.

"I wanted to be the Porsche, not the Ford," he said.

For some smaller coffee purveyors, perks like free Internet connections, dog treats and the occasional complementary cup of coffee go a long way to keeping customers from straying to the big-chain competitor.

Others stress the importance of getting to know the customer, and learning not just what drink they prefer, but how they like it made — not too hot, with extra foam, or light on the chocolate.

That's been a mantra for Jack Kelly, who opened his first Caffe Ladro in Seattle's Upper Queen Anne neighborhood just two doors down from a Starbucks.

"We said, 'We're going to steal all their business,'" Kelly remembered.

On a recent weekday morning, the narrow, funky space was bustling. Barista Natalie Bardsley estimates that as many as 90 percent of her customers are regulars.

Jud Hendricks has been getting his caffeine fix here at least once a day for about six years.

"The staff is awesome, and I like the idea of supporting a locally owned business," he said.

Starbucks cultivated the idea of being a so-called "third place" between work and home, but some who frequent Seattle's other coffee houses say it still can't offer the individuality of a smaller company.

On a recent sunny Tuesday afternoon at Zoka in Seattle's Green Lake neighborhood, Cezanne Ezekial, a nursing student, was taking advantage of the free Internet access and sipping iced tea in the back corner of the sprawling store. Ezekial said she's come every day for the last month because she likes the atmosphere, it's a good place to study and "it's not Starbucks."

Julia Larsen, another Zoka regular, said the coffeehouse and its familiar faces became her connection to the outside world as she's grappled with raising a disabled son. And she said Zoka sells a better cup of coffee.

Many of Seattle's better known coffeehouses have become mini-chains of their own, finding that the scale of several stores helps keep costs down. But several say they would hesitate try to follow in Starbucks footsteps.

Kelly now operates 10 Caffe Ladro stores in the Seattle area, and he won't rule out adding five more. But after that, he said, the company would have to start adding things, like a human resources department, that wouldn't make economic sense.

Zoka's Babcock thinks he will eventually add to his two Seattle stores. But he worries that if he gets too big, his company won't be able to do things like spend weeks painstakingly training baristas using the methods his more seasoned employees follow for the competitive world barista championships.

"I don't want to get so big that the quality ever drops off in another store, and if we get really big then that would happen," he says.

For some of Seattle's independent proprietors, the decision to keep things at a smaller scale is in part about quality of life. Dow Lucurell wakes up at 4:30 a.m. and gets his first latte of the day at the Uptown Espresso in Queen Anne, before embarking on a 12- to 14-hour day that will often take him to each of the seven Uptown locations he owns in Seattle.

The hours may seem long, but Lucurell says he knows the names of all 63 of his employees and has a job that allows him to have long lunches with his buddies or coffee with his parents. It's a life he says he wouldn't be able to maintain if he were running a bigger coffee chain or trying to answer to shareholders, like Starbucks does.

"I've always had a great niche," he said.

Lucurell also calls Starbucks the best thing that could've happened to coffee. Still, he worries what might happen if Starbucks starts to wane and the company decides to use its clout to undercut competitors.

"When their golden era is over, that's when they start to pressure," he said.

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