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The Coffee Stock: Starbucks woos the engaged with free coffee, lessons

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Vienna, Austria is largely credited with creating the coffee house culture. Its venerable institution of a coffee shop, Café Central, was meeting place, workshop, living room for writers and political firebrands of all kinds. Revolutionist Leon Trotsky was just one famous patron. At the coffee house, you could be sure to connect with the most passionate and literate people around.

While that culture persists in Vienna and many European cities, critics argue that Starbucks (NASDAQ: SBUX), McDonald's (NYSE: MCD) and Dunkin Donuts have devalued coffee's key role in literary and political engagement. I argued last month that this was one of the key failings of Starbucks over the past several years and that the company should endeavor to reclaim the coffeehouse feel. And small steps indicate the chain is trying. Publication of the GOOD sheet and offering free coffee for those who vote seem designed to target the engaged. [Aside: Starbucks changed its qualifications to "anyone who asks" to keep on the right side of election law, which generally bars inducing someone to vote -- or convincing them not to vote -- by giving them anything of value.]

By aligning itself with an ad campaign that encourages voting and prompting its customers to delve deeply into a potentially political issue with its GOOD sheet, Starbucks is clearly attempting to rebrand itself from the accessory of the clueless pregnant celebrity (remember Britney Spears and Jennifer Garner while pregnant, always with a Starbucks cup in hand?) to the brain fuel of the cerebral community organizer. As bold and cutesy stuffed animals and children's insulated mugs are replaced on the counter space with an explanation of the economy or a description of U.S. immigration statistics, it's clear the company is working toward coffee house and away from its industry category ("quick service restaurant").

Recent management comments in last week's New York Times point to more ways Starbucks is working to appeal to the engaged, intellectual consumer.
Some stores, beginning in Seattle, will be redesigned to include communal tables that encourage conversation and provide that "human interaction" Arthur Rubinfeld says its customers need. As a part of many ways the company is seeking to establish itself as a "responsible social citizen," Starbucks will be installing furniture made of reclaimed materials and has undergone a serious marketing campaign to inform consumers about its work to encourage sustainable agricultural practices and fair prices for its coffee beans.

Starbucks may be the coffee purveyor with the closest link to the true coffee house heritage. But others are hopping on the bandwagon, if sloppily. Dunkin Donuts, which has emerged as a key coffee competitor to Starbucks (against all odds), is offering free star-shaped donuts to encourage voting. Competitors like Peet's Coffee are touting their "three-decade relationship" with coffee growers.

But for once, Starbucks is doing it best. So today, this Election Day, Starbucks gets my vote. My boys and I are headed off right now for our free coffee!

Update: I did go to Starbucks in my left-leaning southeast Portland neighborhood this morning, ordered pastries for my two little boys and asked for my free coffee. I got it, without comment and was disappointed: no acknowledgment of my theoretical civic involvement? Then the manager came in, still bike-helmeted before shift and immediately began talking election and candidates with a patron. My faith in coffee house discourse was revived!

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Last updated: July 06, 2009: 06:09 PM

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