Rent and costs has spiralled in the big cities, meaning that a customer that sits half a day with a laptop costs Starbucks money. Starbucks profit is in Take Away.
Every customer at Wheelys is a take away customer.
On the other side, starbucks don't need that type of advertising now and a small\upcoming shop can't afford that kind of advertising.
This idea is also business specific. Can restaurants afford whole day sitting customers? No, I think
"You walk into a retail store, whatever it is, and if there's a sense of entertainment and excitement and electricity, you wanna be there."
“We’re not in the coffee business — we’re in the experience business”
If you consider that the largest cost is probably rent, then people sitting around probably add only a tiny amount more. It's only an issue if the shop happens to be be full and there are other customers who wanted a seat.
That person sitting there is probably doing Starbucks a favour. People are more inclined to go somewhere where there are other people.
As comments further down noted, there are two types of coffee customers: (1) get it and leave & (2) spend time in a coffee shop.
Where (1) breaks down is basically if you don't have access to a Starbucks on a commute. Which to me is a particular type of customer: lives in a city core, bikes or walks to work / uses mass transit. These are the type of customers Starbucks can't really afford to chase. They're designed as a stop when someone is commuting in from the suburbs via car.
Deliver a high-quality, dependable (key!!), possibly cheaper product right in front of a rail or transit stop? Bob's your uncle.
Good luck!
PS: Step 2: ? Step 3: (Get bought by Starbucks and profit!)
First, congratulations on your launch! I hope to try Wheelys out soon!
A bit of well-intentioned feedback regarding your positioning strategy: as I am often the customer you mention who sits at Starbucks (or other coffee shops) all day, I can assure you that the owners don't perceive me as a cost even though I don't buy much (I often speak with them and ask about life as a small business owner). In fact, at locations I often visit, it's very common (say 1 in 3 visits) for the managers to give me a tiny freebie. Maybe I'm just a likable guy, but I don't think I'm so charismatic as to completely warp their perception of me being a drain or a benefit.
I think one important point is that I make sure to buy something any time I'm taking up space and the place is crowded (say 70+% fill rate on seating space). But that's at most 2 hours per day (the morning pre-work rush and the lunch rush). In those peak hours I would agree that I am taking up valuable real estate and should contribute something to their upkeep.
Anyway, congratulations again and I hope to see one of your sites soon!
That is why the 'owner' doesn't care.
That doesn't change the fact, raised in a sibling comment, that given the fixed cost of rent, having someone in the shop during off-peak hours is in a sense "advertising" the desirability of the place. Trickle revenue + "advertising" using up slack capacity seems like a clear win for them, given the pre-existing real estate investment.
Interesting. Then how come there are so many non-corporate Starbucks outlets? The ones that don't get the same new products and don't take their gift cards -- like airports, for example.
Agreeing with you, I'm pretty sure there's no way for an individual to open their own Starbucks store; the licensed stores pretty much have to exist within a larger organization where it would be impossible to open a store independently (in the local cases, that'd be due to the food service unions).
In Canada at least, there's also instances where Starbucks has worked out some kind of cross-renting deal. Chapters/Indigo Books is a prime example. Every Indigo I've gone into has had a Starbucks, but those are staffed by Starbucks employees and not Indigo employees.
Presumably Starbucks has calculated this. There's new one near me on 53 and 3rd that has plenty of sitting space, and the food is arranged differently (more like Pret I guess). And there's a sign posted outside that anyone can come and sit without having to make a purchase. The coffee shop is, for many people - especially those starting a company or working on their own - their office.
The only reason I drink Starbuck's overpriced bitter coffee is because they have been kind to Anyone who walks through their door.
They have allowed anyone(including the homeles) to use their restrooms. Although I think that's starting to change? Watch it Starbucks--some of us notice those Managers who take their job too seriously, like its their bathroom.
I go to Starbucks because of the welcoming environment--period. I don't like anything they serve. I could go to the coffee shop across the street(the Coffee Something), but I remember the time they asked my friend to leave. (He looked homeless, but was worth a few million dollars.)
I will never forget that day, "You get outa here, you don't spend money!" He was actually one of their better customers, but this particular day, the owner was filling in for a employee. He never went back. My friend easily spent $4/ day, and he was there 4-5 days a week. RIP--RBB.
... I don't think this is the success story you want to paint it as. Who cares if he's a millionaire if he's only purchasing $4/day? If a retail shop is reliant on a customer worth a mere $4/day, then it has serious problems.
And if his presence discourages other patrons or consumes space that other paying patrons could have occupied, it's a drag on business. Sure, having an empty shop is a problem because it makes you look unpopular, but conversely, having a full shop of people who aren't purchasing anything is equally bad, because it blocks people who do want to purchase.