Office Space News
Can the Coworking Movement Save Starbucks?
Published June 19th, 2009 by Jennifer LeClaire
I was reading a story in The Motley Fool about the woes of Starbucks’ advertising efforts. With McDonald’s zeroing in on their sweet spot and Dunkin Donuts launching a direct assault on the Seattle brand, Starbucks may be a little worried.
But Starbucks may have a hidden advantage in some circles: coworking.
Sure, I can now find espresso-based coffee beverages like Latte and Cappuccino at Mickey Dee’s in Miami – and I can find them at $3 or less compared to Starbucks’ outrageous prices. But I don’t see coworking cohorts hanging out at McDonald’s on South Beach.
Sure, I have seen people wearing T-shirts that read “Friends Don’t Let Friends Drink Starbucks” with a Web site address DunkinBeatStarbucks.com. It made me laugh. But, again, I don’t see the coworking population taking up temporary residence in a Dunkin Donuts in Fort Lauderdale despite the lower prices and ease of satisfying the much-needed afternoon sugar rush.
Starbucks CEO Howard Schultz and his marketing team may be grasping at marketing straws as product confusion sets in. (Who wants instant Starbucks coffee? Yes, they now make Starbucks Via for folks who don’t want to wait for the fresh brewed stuff at home. Give me a break…Starbucks is missing the point.)
Back to my point…Starbucks is a natural environment for co-working, with Wi-Fi access, tables and couches, breakfast, lunch and snack items, and, of course, coffee. Starbucks isn’t the only outfit that fits this description, though. Quick casual restaurants like Panera Bread Company also have Wi-Fi and I see more and more folks camped out there with Macbooks working on projects.
But Starbucks has the start-up culture, the coolness factor, and perhaps the best coffee. What would the coworking world be like if Starbucks started doing something special for these entrepreneurs? What if they had a ‘co-working corner’ where people collaborating on projects could hang out in a comfy area with extra electric outlets and little tables?
What if Starbucks offered some sort of frequent coffee drinking discount to the coworking population to entice them to come again and again? Free Wi-Fi for coworking folk? In other words, what if Starbucks fully embraced the concept and catered to its whims?
Sure, that wouldn’t necessarily save Starbucks’ revenues in and of itself. But, heck, you’ve got to start somewhere. Starbucks has the right environment for coworking. Dunkin Donuts and McDonald’s do not. But Caribou Coffee and Panera do. Who will win the hearts and minds of the growing coworking population? What will it take?
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Bill Brookshire June 19th, 2009 at 8:56 am
I love this! I love Starbucks, but the economy is really bashing its Seattle brains against the tiled floors. I think Starbucks could do something more to attract the coworking kind. Free refills on regular black coffee might do the trick. How much coffee can you drink in one day? They brew it fresh every 30 minutes anyway. It probably goes to waste during the off times.
Elizabeth Sanchez June 19th, 2009 at 9:41 am
That’s a great column — and it’s got some truth in there. Starbucks should compete on its strengths. At some level, coffee is just a commodity. But a great coworking environment is something else. I don’t see coworking going on in McDonald’s or Dunkin Donuts, either. Starbucks won’t make millions catering to coworking audiences, but at least they could carve out a stronger niche there.
Melanie Jones June 19th, 2009 at 9:43 am
I think Starbucks is one of the best places outside of actual coworking facilities to get together on a project. They don’t bug you about ordering more food. You don’t have the noise of the lunch hour rush. There’s not a lot of noisy kids in there. Starbucks could lose its coworking edge to some of its competitors if the likes of Caribou decide to get more aggressive about targeting them.
Rob Zeus June 19th, 2009 at 10:01 am
This is a cute look at the possibilities of coffee and coworking. Here’s a twist: Coworking facilities could just brew up some Starbucks coffee and drive them there instead. Yeah, coworking facilities cost money to rent, but depending how much you spend on Starbucks every month, it might be worth it.
Maggie Correta June 19th, 2009 at 10:10 am
Well, there’s Starbucks on just about every street corner. There aren’t Caribous or Paneras on every street corner yet. Starbucks has a marked advantage among this group and they’ve done nothing to get it or nothing to keep it. Coworking is a culture, though, and I am not sure anyone offers a better fit than Starbucks. It’s sort of like Apple. Starbucks just has the coolness factor that folks love, especially the coworking demographic.