Does Starbucks Actually Help Local Coffeeshops?
As Northwest Arkansas continues to grow, more and more giant chains are moving in. The typical assumption is that as the chains move in, the local mom and pops move out.
One such locally owned business that I’ve often been worried for is Arsaga’s Espresso Cafe. With its five locations, Arsaga’s definitely has good footing in Fayetteville but with Starbucks locations popping up all over Northwest Arkansas, one has to wonder how long the local coffeehouses can stand their ground. Here’s an interesting article on how many mom and pop coffeehouses around the country are actually benefitting from being surrounded by Starbucks. Says Taylor Clark of Slate Magazine, “When Starbucks blitzed Omaha with six new stores in 2002, for instance, business at all coffeehouses in town immediately went up as much as 25 percent.”
Here’s hoping that Arsaga’s can tame the coffee giant as well.
Comments
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By sg on January 2nd, 2008
I have a feeling that Starbucks will help local shops more than they hurt them. Here in KC there was a similar negative backlash when a Starbucks opened RIGHT NEXT to a local favorite coffee shop in Westport. Five years later, the local shop is still open and the Starbucks is closing down (mainly due to the newer drive-thru Starbucks that opened a few blocks away).
By Michelle on January 3rd, 2008
Actually, researching how cities fund big box stores by tax increment financing is a good way to answer this question. All tax payers pay for said store to be built, and the big stores don’t pay sales tax, yet their competitors do. Sound fair?
Now that’s not to say that I know for a fact Starbucks made a such a deal (I have no idea) with Fayetteville or that I don’t wish Arsaga’s would use the good soy milk (Silk) like Starbucks does…but it’s something to consider. (so is eminent domain, but that’s another argument in itself.)