Starbucks Coffee manages customer traffic in a unique way at ‘Third Place’ – Part 3

“Changing the business model from third places to speed lane stops will not change the underlying human psychological need,” said Suzanne Roff, PhD, an industrial psychologist. “The value added to a cup of Starbucks coffee is the safe, unhurried comfortable environment that is not home or the workplace. This has become its brand identification.” If Starbucks continues to standardize its stores and shave down their comforts, its “third placeness” will continue to dissolve, and “urban consumers in particular will lose an informal social network (that emerges without a plan) that is an important antidote to loneliness and isolation. Those without workplaces may feel more estranged because there will be a sense that there is nowhere to go to feel part of the urban social fabric during the workday.”

The strategy, and more that will follow the suit, have the potential to destroy the very image that Starbucks created and dwelled upon. This is a concern not from the business pont-of-view but is a social concern.

A spokesperson from Starbucks defended the strategy in a statement:

“Since 1971, Starbucks stores have become a Third Place – a comfortable, sociable gathering spot away from home and work, like an extension of the front porch.  People connect with Starbucks because they related to what we stand for.  It’s the romance of the coffee experience, the feeling of warmth and community people get in Starbucks stores. As a standard course of business, we continually evaluate our store portfolio, and review and evaluate our locations to ensure a healthy store portfolio that fits the needs of the community.”

As obvious from the text, it is vague at best and does not address the underlying issue. But whatever follows this audacious strategy is going to determine the fate of the company in the next few years. If Starbucks follows this specific step, they should keep it in mind that the competition will not allow enough time find a way back.

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Posted by Usman Khalid on May 30 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.