27 Comments

Loved this! Thank you!

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Jul 30Liked by Bill Murphy Jr.

Well, I just bought your book 👍

I've never liked the taste of Starbucks coffee... I believe I've mentioned before I have my graduate degree in social work. My undergrad work was psyc & 3 credit hours short of a dual major in sociology so this story was very interesting.

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Very interesting!

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Jul 30Liked by Bill Murphy Jr.

It's not just Starbucks - although it happens to be the most prolific coffee shop that caters to a work environment. It is the concept of a third place - you have your home, you have your office (unless you don't have an office), yet you need a cocoon where you can focus. Starbucks just happened to be the easiest one to measure due to its scale. I joined an incubator just to have some sacred space (240 sq ft) to energize my juices. My floormates also add flavor and texture to my thinking as opposed to staying in my home office - getting my 800 steps in daily. So cheers for Starbucks and all of the little guys like Deeper Roots and Clarity and Coffee Please - the entrepreneurs that provide a home for entrepreneurs.

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Can be correlated rather causal. Starbucks will select neighborhoods where indicators are trending positively, and those trends will include entrepreneurship. Put another way, growing neighborhoods attract Starbucks and also attract entrepreneurs. Starbucks is not The Cause here.

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what comes first, the chicken or the egg :-)

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Starbucks is neither the chicken nor the egg. It is the farmer taking the eggs in exchange for birdfeed.

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Exactly!

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Don't like Starbucks coffee and will never understand why people choose to stand in line and wait while someone makes"coffee" one at a time. Give me a Time Horton or MacDonalds where I can get in, get a coffee and go with limited time wasted. Would rather make my own coffee anyway

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author

But isn't that the whole point of their 3rd place idea? I think this is exactly why I spent so much time writing in there. I could buy 1-2 black coffees over the course of several hours, have a place to work, etc.

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Jul 30·edited Jul 30

Perhaps if they had decent coffee, I would agree. But I can sit in any coffee shop - even a McDonald's, and have better coffee for less money.

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author

that's fair, maybe part of why Starbucks is having a harder time now.

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I will never drink coffee from a McDonal’s because I won’t enter a McDonald’s. Also, a medium coffee is only $2.00 and their Italian and Guatemalan are pretty good. But I prefer my morning coffee at home. Grounds and Hounds.

https://groundsandhoundscoffee.com

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Melissa - like I posted, I don't care for their coffee either. I drink mine black but on occasion when someone would want to meet at a Starbucks I learned I liked a double latte topped w/ nutmeg in the winter or an iced coffee in the summer. I don't think I've had Horton's, but McDonald's is good (the only thing I've had from McD's in 30+ yrs is their coffee, occasional fries, ice cream cone or salad.

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Different strokes for different folks. Who wants to sit in a Tim Horton’s or Micky D’s to work on something inspiring to them. Starbucks stores are usually have comfortable seating and ready access to the internet. As in the European coffee shops and pubs, ideas bloomed, revolutions sparked and societies changed which possibly gave Starbucks’ founder the idea in the first place.

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Amen to that! On another topic, according to the NYT:

“ But what about inflation? Glad you asked. On Monday the New York Fed released its latest estimate of underlying inflation, based on an algorithm that’s supposed to separate the signal from the noise. The Fed’s target is 2 percent; the current New York Fed number is 2.06.”

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so maybe not McDonalds, maybe a local coffee shop. I know the ones near me have better service and better coffee than Starbucks.

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I do like SB Italian and Guatemalan. Poor overs are great. Dark roast - mmm…

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Neutral ground , common turfs, or shared spaces generate ideas, interaction, speculation and debate.

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I recall Starbucks back in the late mid-late 90s and they had good coffee! The baristas actually made the coffee instead of the machine. Now, you can find those types of espresso drinks at smaller coffee chains where they finish off your latte with a heart.

But, speaking to Starbucks as a third place, I don't think most of the newer stores are made for that. So many of them only have a few seats, if any. It would be nice to have a third place especially now days when there are fewer places you can actually meet people. Although, most of the people in Starbucks or anywhere else is probably on a device, so having contact with a person may be more limited now.

Maybe Meetup or some other group gathering app will offer more social interaction, but you have to seek that out and find specific groups. No serendipity in that.

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Maybe We Work should have used a similar idea?

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I don't personally love Starbucks (I lived in Italy and for me that's the only coffee worth drinking), but I must admit when I am valuing a business opportunity I do take into account the Starbucks presence. I have represented high end finishes' brands creating their distribution network and I believe that if people are willing to pay such prices for something that is average coffee, they have enough money to spend in furniture and finishings.

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"neighborhood that didn't have a similar coffee shop previously"

That is key to understanding this. It is nice that Starbucks followed others in helping to foster entrepreneurship. But I remember how they got started. And I use them as an example of the true nature of corporate monopolies.

They opened Starbucks in areas where there already was a "similar coffee shop previously". They could afford to open shops in better areas and sell beverages at a loss, to put the independent family owned businesses under. I was a frequent customer to just such a coffee shop. They had people writing and working in them as well. Starbucks put them out of business.

Corporations don't create jobs. Small businesses create jobs. Corporations buy them, or break them, and cut costs (jobs) to increase profit.

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I like the concept of the 3rd place; it appeals to me as an Introvert. I may not be a Starbucks fan, but I certainly appreciate the opportunity for "social" energy without having to truly participate using words...LOL!

Thank you Bill!

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I agree. I also think the coffee house idea was one of the best this country has ever adopted. I made many friends at mine and over the years hundreds of authors have written books there

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A third place to meet and work is great. European coffee shops are typically good. Libraries can be good also.

Many coffee shops are independent and contribute to their local economies, whereas Starbucks is a chain that typically sucks money out of a neighborhood.

As to "Their stock price is down 28% since a year ago, and they have an earnings report out today that isn’t expected to contain good news.", this could also be because many people now boycott Starbucks over their connection to genocide in Gaza by Israel.

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Locally Starbucks is opening a new store on the street corner in front of a small strip mall. In this strip mall there was a small coffee/pastry shop. When the construction started on the Starbucks, the small coffee shop was notified they had 30 days to close up shop and move on. Starbucks must kill off the competition so they don't have to compete. I refuse to drink their coffee.

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