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Extra6/24/2009 12:01 AM ET

In defense of Starbucks

Unable to compete with local rivals, the coffee chain's outlet in Missoula, Mont., has closed. That's bad news for the mom-and-pop shops left behind. And for the town.

By Jonathan Weber, The Big Money

When a Starbucks (SBUX, news, msgs) opened across the street from our offices in downtown Missoula, Mont., a few years ago, a lot of people in this liberal college town were not too pleased.

The national behemoth would squeeze the local coffee shops, critics said, and contribute to the homogenization of Missoula.

"In addition to supporting local cultural, social and athletic events, local shops add a degree of color and flavor to areas that no Starbucks ever can -- unless you like the contrived, calculated flavor that every other Starbucks in the country has," wrote one commenter on NewWest.Net, a source of online news for residents of the Rocky Mountain West.

"Additionally, profits from local coffee shops tends to stay close to home," the commentator said, "allowing for further local investment in the community. Starbucks profits get shipped off in giant suitcases to the company HQ three states away. Further, local shops are also more likely to hire local contractors, keeping even more money close to the source."

As the founder and publisher of NewWest.Net, whose largest competitor is a multibillion-dollar national newspaper chain, I've always been more than sympathetic to this argument. As a company, and as individuals, we're all about supporting locally owned businesses and the eclectic downtown commercial culture that goes with them.

But earlier this month we learned the Starbucks would be closing; it couldn't compete with the excellent alternatives. And I don't see that as a good thing.

For starters, the idea that Starbucks would drive out independents was obviously incorrect. Break Espresso, barely 100 feet down the street, is busier than ever, thanks to a great physical space, good coffee and free Wi-Fi. Starbucks has always said its arrival increases business for all coffee purveyors in the area, and at the very least it didn't hurt the neighbors here in Missoula.

Plus, given the economy, Starbucks' prime space will probably stay empty for a while. The employees will lose their jobs, which, while not high-paying, did come with benefits. And that's more than you can say about a lot of work in this low-wage town.

More people looking for work and more empty storefronts on Higgins Avenue aren't great for anyone in the community.

Cuts 2 ways

It's usually smart business to support like-minded independent companies. Personally, I hardly ever set foot in the Starbucks, even though I think its coffee is just fine. I much prefer Trailhead for sporting goods to Sports Authority, Go Fetch for pet supplies to Petsmart (PETM, news, msgs), Fact & Fiction for books to Barnes & Noble (BKS, news, msgs) and First Security for banking to Wells Fargo (WFC, news, msgs).

But the more personal nature of these relationships can also cut the other way. A local electronics chain that we wooed as a client for years recently pulled a small ad campaign because a satirical blog post on NewWest.Net offended the religious sensibilities of the owner. I doubt that Best Buy (BBY, news, msgs) would have acted in that fashion.

Some national chains are starting to source products locally, especially food. While it may be true at some level that profits are "exported" to headquarters, good branch managers are often active in their communities and support local businesses. In the case of franchises, they are, in fact, locally owned businesses.

I agree that a town dominated by chains is less interesting and rich than one with a vibrant independent business community. But here, at least, it seems the two can coexist.

And it's dangerous to assume that what's bad for the chains is good for the mom-and-pops. In this economy, a store closure is nothing to cheer about.

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Wednesday, June 24, 2009 4:53:21 AM
Thank you for making a valid point about Starbucks. NO ONE losing their job is good. My daughter has worked for Starbucks for 3 1/2 years while in high school and working her way through college. It is a GREAT company to work for.

Enjoy a latte today.  Help a college student go to college. Smile

Wednesday, June 24, 2009 5:00:27 AM

Just because you have a local coffee shop doesn't mean that it is a good coffee shop. I believe that having a Starbucks around can help raise the bar. I do like being able to go into a Starbucks and know what my drink is going to taste like do to their consistency. I don't believe that any one of us enjoys dropping $3 on a cup of coffee, only for it to taste lousy. Living in the northwest there is an abundance of coffee shops around here and I have found that I am able frequent the local shops as well as Starbucks.

 

Not only does Starbucks supply plenty of jobs to the economy, they do a great deal of community service in our area. They have sponsored many parks and community events in our area thru grants and volunteering. Those who are so hell bent on not having this corporate giant move in and ruin their neighborhood, should really look into this company and take notice on how they could actually help your neighborhood and economy. One only shows ignorance when they say that this company is going to ruin their local flavor. The shops that offer good product and good service will not be "squeezed" out.

 

 What I am really trying to say is that I get tired of being so derogatory about this company when they really do many good things for those around them. Did you look into the programs Starbucks offers the growers and their communities that the growers aren't getting from anyone else? Did you look into the grants and volunteering they offer to local communities? Did you notice how we are all getting a better cup of coffee now, whether at Starbucks or your local coffee shop, quite possibly do to Starbucks influence? Don't get me wrong, I am not saying that Starbucks is the best thing since sliced bread, but the company does do many good things and I don't think that people should negative about them.

Wednesday, June 24, 2009 5:22:17 AM
Starbucks success is partly attributable to the fact that most local coffee shops just plain suck. High prices, you never know what the coffee is going to taste like, and lousy hours. I travel the world on ships so I drink alot of coffee. Starbucks has the quality, consistency and decent price for what it serves. It also has the power to help small farmers in poor countries whcih it does and which most small shops can't.  Maybe sensitive Missoula has decent shops but 98% of the US doesn't. Untie the whipping boy from the post... high time to give credit where credit is due! Lighten up America!
Wednesday, June 24, 2009 5:43:17 AM

WITHOUT A DOUBT , STARBUCKS HAS REVOLUTIONIZED COFFEE DRINKING IN THE USA AND HAS BROUGHT OUR COFFEE TASTES TO A NATIONAL LEVEL OF TASTE THAT EXISTED ONLY LOCALLY TWENTY YEARS AGO.

 

UNFORTUNATELY , LIKE MANY MEGALOMANIACS ,SUCCESS WAS TRANSLATED INTO INFALLIBLE POWER  AND  STARBUCKS MOVED INTO A CAPTIVE CONSUMER MENTALITY.

 

HOWARD FORGOT OR IGNORED THE ENTIRE BASIS OF HIS SUCCESS AND THE NEEDS OF HIS CUSTOMERS.  WHEN YOU DO THAT IT LEADS INEVITABLY TO FAILURE. STARBUCKS DEMISE HAS ONLY TO DO IN  PART WITH THE CURRENT ECONOMY. STARBUCKS WAS MOVING DOWNHILL BEFORE THAT TIME IN SMALL AND BARELY PERCEPTIBLE WAYS.  STARBUCKS WILL NEVER RECOVER AND RECAPTURE.

Wednesday, June 24, 2009 6:34:02 AM
I'm sure that shop must have closed because your local residents are more savvy coffee drinkers than the city slickers.  Why drink a mass-marketed, over-roasted, bitter brew made from the cheapest beans available when you can easily find something better?  Even my home brew is far superior to the swill they push at Starbucks.
Wednesday, June 24, 2009 6:52:21 AM

There are ups and downs to EVERY single thing around us--haven't you people ever heard the saying, "...can't please 100% of the people 100% of the time?"  Just because you don't like something or don't agree does not give you the right to slam it or wish it ill-will.  What if someone at your job just didn't like you for some silly little reason and tried to get you fired for it?  Not fair, you say?  Well, what are you doing when you slam Starbucks simply because you don't agree with their beans or their price?  Did you ever stop to think that you pay 4$ for their coffee because they offer benefits to ALL employees (part and full time)?  Or because they always pay above minimum wage?  Or because they always get involved in their community and their hours are great for customers and workers alike as many of those workers are going to school and need weekend/evening hours to work.  People are just so ready to see only the bad and the negative.  And we wonder why people are so darn miserable and hateful.  Maybe you should try being optimistic and smile once in a while.  It feels much better to see the good and to smile than it does to constantly focus on the negative and to frown....Nothing is perfect--take the good with the bad.  Starbucks does more good than you think so do your research before you try to infect everyone with your negativity and misery.

Wednesday, June 24, 2009 7:25:24 AM
Being retired now, I do not frquent coffee shops but pehaps  2 or 3 times a month. We have several in my NW Phx, AZ community. Starbucks has the best coffee by far. And it is the most expensive. So I only go there say, twice monthly. When I worked, I frequented the place at least 7 or 8 times a month. Now, on a budget, I just prepare my own Hot coffee at home. There are a handful of independent coffee shops that are good here and there. But you gotta try them all to find a good one. Starbucks is consistent though. its just now that I am retired, I can no longer afford to frequent them as before. And I'm finding out, your coffee made at home can be just as good!!!!!!!!!
Wednesday, June 24, 2009 8:43:55 AM

My problem with Starbucks is that it is not a fair trade company. It extracts the farmers in Africa and make a huge profit in every signle cup of coffee it made.

 

One of the folks above mentioned how starbucks contribute to the society. Well, as an international major company, this is simply an advertisement. Public relation is a big department in all major companies. Please name one company that makes big profit but never sponsor any local events. Even Citigroup continues to sponsor events. So, stay awake!

Wednesday, June 24, 2009 10:33:12 AM
Is there a Dunkin in Missoula?  Way better rolls and doughnuts.
Wednesday, June 24, 2009 9:56:04 PM

First off- snowdog- I know what that F stands for and that was totally not nice- so I'm going to be nice for once in my life and pretend you meant fat. HotI love ethnic cuisine, however, amaretto and anisette are flavored liquers- amaretto (hazelnut makes a nice inexpensive alternate) I can see in coffee with dessert- not breakfast- but anisette- Anisette tastes like licorice- bleah! Sick 

You make fun of us putting stuff in our coffee?

And I love my local Starbuck's! I get a cup of hot chocolate when I do my monthly grocery shopping. The store's Starbuck's kiosk is also a known safe haven for children who get lost in the store because it has a lower counter than customer service so children can easily tell the baristas they need help finding a lost parent. Also the girls at our local Starbucks are great with kids, and try to remember if a kid doesn't like something or has an allergy.

Our private owned coffee shop in town won't even wait on kids.

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