Hello all!! I am looking at purchasing a piece of property beside a Starbucks and want to know what is the best establishment to put beside a Starbucks?
You need to do a void analysis and see what would be a good fit in that area.
@Brooks Foster Another one because:" i like big chunks of coffee and i can not lie" :-)
You have to figure out what people need and not so much competing.
Talk with local people to get a sense if there is a retail shop that can provide something they need. It could be a supermarket(a big one) or it could be clothing. Guessing won't work. The Marketplace(aka local people) must tell you.
Ask them without an agenda so you don't skew the conversation. Listen. After 10 people telling you more or less the same thing you can build your case from there. It is always about being useful to people and providing them what they want at a price they can afford and keep coming back.
You need to find out what’s missing in the neighborhood that the potential regular customers would like.If you’re talking about a strip mall location,you might consider a sandwich shop or an ice cream place like Coldstone Creamery. If you are talking about a stand alone place with a drive through,a fast food place like Taco Bell or a burger joint seems to go well next to it.
Put another Starbucks... honoring the end of the universe by Lewis Black
Seriously though, as everyone else stated, you need to research more. Top chains like Starbucks, McDonalds, Walmart, etc. build in specific areas for very specific reasons. Chances are highly likely that Starbucks has already researched the market before building the existing store.
Figure out what the area needs that it may not have yet. Maybe a Marijuana dispensary, there's people making a lot of money as more states and cities are legalizing it.
Another option would be to just build out a good commercial space and lease it to someone else wanting to start one of the many businesses.
There was an article in the WSJ a few years back where a smaller coffee franchisee's strategy was to open a coffee shop right across the street from a Starbucks and he was wildly successful. Let Starbucks drive the traffic and then poach their customers. I know I would much rather go a different coffee shop than Starbucks if given the option
@Dan Wallace Yes! I read an article a while back about one of the smaller burger chains - Maybe Wendy's or Hardee's or something. Basically they spent zero dollars on market research and just planned their new developments based on McDonald's.
I would be looking at something high end, maybe a jewelry store. Keeping in mind that the majority of Starbucks clients have surplus cash and no financial self control. Image is of prime importance when spending their money.
@Brooks Foster So you’re going to buy the property and own/operate the business? I see a lot of wireless stores next to local Starbucks around here but I don’t think you’re going to build/own/operate a Sprint store. Other than that it’s a lot of food places. I rarely see a dry cleaners, mostly because I think it’s a lower margin business.
@Brooks Foster i also was wondering if you are looking to operate a business or you mean what type of tenant you are looking to attract .
Is the property in L.A ? if so what neighborhood?
In L.A I've been noticing Starbucks opening more drive thru locations .
@Thomas S. Majority of Starbucks customers have no financial self control ? I haven't heard this before was there a study done?
Prices for Starbucks regular coffee and their sandwiches isn't much different from fast food type places really , at least here and the quality is significantly better and healthier ..Not sure in Canada .
Brandon Turner is a fan of Starbucks and i'd say he has good financial self control !
Starbucks also treats their employees well and gives them great benefits too .
Disclosure : I am a Starbucks fan
The piece of property I'm looking to purchase is in SC. Its a fast growing rural town. Many houses are being built, lots of families are moving to the area, and a huge lifestyle complex with a Target and TJ Maxx is in the plans.
I'm not 100% sure what I would do with the property. I was thinking something like a Smoothie King or a Panera Bread. I don't know the process of building and operating a franchise building or convincing and selling the property to a business. I just feel like its a great opportunity to purchase and need some ideas and help.
@Brooks Foster Do you mind supplying more detail around a 'fast growing rural town'? How did the rural town become fast growing? I'm curious because I see so many rural towns dying these days.
How big (acres) is the property you are purchasing? Is it land or is there a structure on it, and if so, what is it? What is the access like?
I've seen very successful bookstores right next to Starbucks.