Though you probably could manage to have Starbucks [SBUX] erect a store in your living room if you could demonstrate the commercial value of that location, Starbucks does not sell franchises, contrary to what many believe. Joshua Kennon of About.com discusses Franchise Value (as opposed to franchising in the sense of a company that sells the right to run locations to individuals) in an article using SBUX as its case study of an excellent business with very strong brand awareness and loyalty.
A friend of mine, visiting Seattle for the first time some years ago, backed me into a corner insisting that Starbucks just had to have some extra-special ingredient that forced her to keep going back for more. Caffeine? I ventured. No, not that, she insisted. Maybe she was on to something after all: a little something called brand awareness?
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Reader Comments (Page 1 of 1)
6-30-2006 @ 9:05PM
nphase said...
So how does that work, with them putting up starbucks' in Krogers' and Albertsons and HEB?
6-30-2006 @ 9:16PM
Mr.noitall said...
Starbucks is a "fad" company, selling an overpriced product. As prices continue to increase for essential goods and services, Starbucks coffee will be a luxury item that people will stop paying for. That combined with the eventual fading of it's fad status will cause sbux to tank badly. I'm advising people to sell sbux!!!!
7-01-2006 @ 11:37AM
Boy Larry said...
A Starbucks, with outdoor tables, is my favorite people-watching venue. And, the price of a Vendi Mocha is cheaper than a mixed drink.
7-19-2006 @ 4:00AM
Michael Canfield said...
I pulled this from the SBUX corporate website,
http://www.starbucks.com/aboutus/investor.asp
which should help answer nphase's question:
Q: Does Starbucks franchise?
A: No, Starbucks does not franchise to individuals. However, in situations in which a master concessionaire or other company controls or can provide improved access to desirable retail space (such as an airport), the Company may consider licensing its operations to such a company.