Starbucks: Stay as long as you want
Last week, The Wall Street Journal reported that some New York coffee shops were pulling the plug on customers that park themselves at tables, open their laptops, and hang out for hours, buying perhaps only a single latte as their cafe rental fee.
While independent coffee shops that are struggling to make ends meet may see the need to flush out the low-revenue laptop users, the major chains are not so strapped. Starbucks founder Howard Schultz, in fact, was a big proponent of building a comfortable third place for people to work and socialize. (The first two places being home and the traditional office.) It's part of the company's mission.
Starbucks' official response to this movement: "We strive to create a welcoming environment for all of our customers. We do not have any time limits for being in our stores, and continue to focus on making the Third Place experience for every Starbucks customer."
Starbucks' Wi-Fi is even free--although not infinitely. Customers (with Starbucks cash cards) get two hours for nothing, after which they have to pay. But if you have free access to Starbucks' AT&T Wi-Fi via another avenue, such as your DSL account, they won't eject you.
Ironically, it strikes me that the move by independent coffee shops to evict third place workers may just drive those people over to Starbucks and the other chains. Sure, all businesses need paying customers and not just window dressing, but my guess is that after turning away those people who have become freelancers and consultants by circumstance and not by choice, they won't come back when their fortunes recover.
Related: Should Starbucks ban laptops?
Rafe Needleman writes about start-ups, new technologies, and Web 2.0 products, as editor of CNET's Webware. E-mail Rafe. 
Ironically I see this article as I am sitting here sipping my coffee at Starbucks trying to catch up on some of my RSS feeds.
Sorry, I just couldn't resist that one. Did you perchance mean barista? :-)
They can use all the wi-fi they want, but not with infinite power too.
Though I personally wouldn't go Starbucks - I'd rather pick a place where they sell real coffee in real quantities. Café au lait for the win.
Some have only limited wall plug, maybe around 10% of the seats. So the rest must bear with power from battery.
For myself, coffee shop had different mood from home or office. I don?t run my own business or do professional work; I also bring my own wireless card (because most place don?t have free wifi). So most of that rent goes for the ambience of the place.
Now if just they had service like security lock or drawer to keep my notebook while taking toilet leave and still going to return to the place.
But like comment from the related articles. Having many customer like that really hurt the turnover rate isn?t it. As someone who go there to rent the place to use internet, seeing the place crowded and all the wall plug used, I?ll lose interest of visit and order a drink.
Funnily enough, when I'm just stopping by for a quick Grande cup of brewed coffee in the morning on the way to work -- "Two dollars, please" -- I feel more pressure from the staff to upgrade to an espresso beverage or to buy something to eat at the same time than I did to leave the store when I would stay from open to close. I guess the possibility I may buy more by staying created the happy feeling that is noticeably absent when I'm in-and-out with a minimum purchase.
Expect more...businesses will welcome more and their profits will rise!
Expect more...businesses will welcome more and their profits will rise!
That said, I usually bought coffee and sandwiches often enough during the time that I was counted as a regular and pretty much left alone by the staff (who were actually a varied bunch of folks, but mostly really cool). The WiFi cost about $5/day, and while the crowd of folks was constant, it wasn't really a large enough one to be uncomfortable or cramped.
The overall argument goes both ways - on the one hand, a scattered bunch of folks sitting around actually invites new customers in. OTOH, if it's too full, then nobody can have a seat, so the potential new customers go elsewhere. Usually if things started getting full, the staff would start pestering those folks who hung out for hours (yet hadn't bought anything but the one cup or so) to either buy something else, or to leave.
I'll give you that they're not the *best* coffee (I'd just assume go to a local place just because I like local places) but their regular brew coffee is perfectly fine. Not outstanding mind you, but it's always consistent and good.
And if you're in the mood for a fancy-nancy coffee (desert) drink, they're by far the place to go.
Here in San Diego the MacDonalds on Clairmont Mesa Blvd and Complex Dr have a nook full of bookshelves and some easy chairs. I guess that they are trying for the artistic coffee shop look. This particular MacDonalds caters more to the business park customers and than families.
That way you keep customers AND "persuade" them to buy more to stay longer.
2) Coffee shops need to realize that they are in the entertainment business. The coffee is only part of the experience. Starbuck's did a better job figuring this out than the mom-and-pops. What Starbuck's hasn't fully mastered is how to better monetize the entertainment factor. As an adult with some disposable income I would pay more to be able to reliably get a table with wifi and AC power for a few hours. I would even be willing to pay upfront for a reservation at a coffee shop to get a guaranteed table.
3) Conversely, think about all the public spaces that could be monetized as mobile offices in a dual-use fashion. Restaurants for example, are usually not very busy from 2-6 pm. They could be morphed into mobile offices and social places that charge a few bucks an hour for drinks, light food, and wifi during non-peak hours. If you are already covering your fixed costs it may be a quick, cheap way to add incremental revenue. The same could be said for public libraries. Due to funding constraints they usually close at 5 or 6 pm. So here you have a large, great public space with wifi that just sits idle not generating revenue from 5 pm - 8 am. The fundamental failure is not thinking outside the box.
(being serious)
Cody
These places are in business to make money, and the ***** that just come in, buy nothing and slurp the free WiFi aren't good for business. They take up a seat, and buy nothing. Saw it happen recently at a local LA coffee shop: guy came in with his own coffee and was using the WiFi for hours. Owner kicked him out.
I think that Peets has hit the right model - 2 hours with purchase. Makes sure that it's not the freeloaders, and keeps a good balance.
HAHAHAH! omg, now THAT takes some balls.
Well, you sir, are exactly the reason I hate Starbucks. Starbucks is not your office away from your home and office. It is a coffee shop. When you plunk down in a chair for hours you are preventing other paying customers from getting their money's worth, since they too are paying for that chair and table you are enjoying, yet you are preventing them from using. I understand your situation, as I too work from home only going to clients when necessary, but that does not stop it from being incredibly rude to camp out at Starbucks, Panera Bread, etc. with a laptop like you own the place.
Ramon Ray, Editor & Technology Evangelist, Smallbiztechnology.com
So whilst the Third Place philosophy is great and desirable - it's not achievable in Australia unless you can afford the prohibitive internet fees.
I'm sure Starbucks could fix that if they wanted :-)
- by DigitalNomadUK August 16, 2009 3:15 AM PDT
- NY steak panini with cheese, large hot chocolate with cream, follow by a cinnamon whirl... with breakfast out of way i get to work and sometimes through lunch too. I don?t drink coffee neither tea, but frapuccinos and carrot cakes are a must mid morning or afternoon snacks. Starbucks won?t kick you out but the deafening music volume eventually will
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