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Changes are a-brewin' at Starbucks Coffee Co.-changes thatcould mean new challenges for independent coffee retailers. In aneffort to satisfy customer demand, the Seattle-based coffee gianthas introduced bigger locations in select markets.
Typical Starbucks locations provide 20 to 25 seats; flagshipstores have 50 or more seats. In addition, says Arthur Rubinfeld ofStarbucks, the larger locations feature expanded menus and thepotential for live entertainment.
To date, Starbucks has five flagship stores: two in Washingtonstate, two in New York City and one in Chicago. "Customerdemand in each locale is so great that to properly service ourcustomers, we need to provide more seating and additional servicechannels," explains Rubinfeld. "We're providing moreof an experience in this retail segment than we do in our typicalstores."
The experience may be a painful one for entrepreneurs, however.With Starbucks offering live music, food and other featuresindependents have relied on to differentiate their coffeehousesfrom the giant coffee chains, smaller operators could find thecompetition getting hotter than a scalding latte.
Contact Sources
Starbucks Coffee Co., P.O. Box 34067, 2203 Airport WayS., Seattle, WA 98124-1067,
(206) 447-1575;
