Starbucks is expanding rapidly within Columbia but that’s not decreasing independent coffee shops

18 April 2021

COLUMBIA — In 2011, Sean McCrossin opened his now-popular cafe Drip in Columbia’s 5 Points neighborhood. It was just around the corner from the city’s initial Starbucks, which opened within 2003. McCrossin liked the region for many reasons, but one of them was taking advantage of the research the particular coffee chain’s had accomplished when opening in that region. “If I could just make use of a small percentage that they believe goes to their coffee shop, plus there are a whole sector of customers would you go to independents, ” McCrossin said. Now a decade later on, the opposite is happening. With a new concentrate on drive-thru and off-premise product sales — aided recently from the COVID-19 pandemic, new free-standing Starbucks locations are growing in Columbia at a scorching pace, growing by several third in the past year in order to 19 with more to come. It could seemingly create a conundrum designed for independent coffee shops, yet local owners see the introduction of more coffee being a potential benefit. Local stores have had their own rise lately as well, with at least 5 opening since 2019. “It’s a rising tide, the greater people that drink coffee the greater off more coffee stores are and I think it eventually kind of helps… put specialized shops a little more into the spotlight, ” McCrossin said. Starbucks seems to have decided Columbia is really a major growth market, however the company does not discuss the regional strategy. It failed to respond to a request for remark. Since March 2020, Starbucks has opened at least 6 new locations in the Midlands, according to a listing kept by website Starbucks Everywhere, that is not affiliated with the company.


Food & Consume

During that same time, Greenville added three Starbucks areas and the Charleston market additional one, according to the website. Within the Columbia area, all these brand new cafes feature drive-thru lane. That includes prominent commuter corridors such as the BullStreet District plus Millwood Avenue near the downtown area, and Lake Murray Chaussee in Irmo. At least 3 more locations in Columbia are under construction upon Forest Drive close to the downtown area Columbia, Piney Grove Street near Harbison and Asparagus spears Creek Church Road within the Northeast. Another Starbucks along with drive-thru is planned included in the Cason Group’s project to create apartments and retail area to the former Rosewood Chapel on Rosewood Drive. The particular project is expected to split ground in the next two to three a few months, with the Starbucks expected to open up early in 2022, creator Frank Cason said. The existence of a Starbucks should be appealing to potential retail tenants as being a traffic draw, Cason stated. Starbucks is the coffee firm that will invest in a new developing, while local cafes search for existing spaces to refurbish, he said. All informed, it’s a major investment simply by Starbucks here at a time whenever other fast-food or counter-service chain restaurants are expanding more slowly.


Columbia Business

This development would likely hurt independent stores but will be far from sufficient to close any, mentioned University of South Carolina teacher Robin DiPietro, who previously worked for Burger King as the director of training plus operations. She estimated there exists room for one to three a lot more Starbucks in the Columbia region and cited the continuing COVID-19 pandemic as a main reason they’ve had achievement in opening locations. “There’s a pent-up demand meant for treats and special actions during the past year that I believe Starbucks is capturing along with bringing these locations in order to more areas, ” DiPietro said. In particular, the new Starbucks in Columbia have done nicely at emphasizing easy access in a variety of ways. In addition to the drive-thrus, there are also the ease of entrance into their car port by being close to stop lighting, for example at new areas on Bull Street within Columbia and Knox Abbott Drive in Cayce, DiPietro said. “You don’t need curb to be in the way associated with turning. Some places such as fine dining restaurants I actually don’t mind, but if may quick $5 cup of coffee, Now i’m not going to go around the obstruct to get to that location, inch said DiPietro, who is furthermore the director for the university’s School of Hotel, Cafe and Tourism Management. Starbucks growth locally mirrors a strategy company wide, with an introduced goal of expanding through 33, 000 to fifty five, 000 locations worldwide simply by 2030. The emphasis in lots of newer locations is a fast stop that fits in to the scramble of busy plans. Sign up for our Columbia company and real estate newsletter.
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“The drive-thrus are positioned as a growth motor for Starbucks, ” Meat Grismer, the company’s chief economic officer, told analysts within June 2020, according to a written report in the trade journal Eating place Business.


Raskin Around

The turn towards more locations and more drive-thrus makes good economic feeling for Starbucks, according to Howland Blackiston. He’s a primary at the restaurant consulting team King-Casey, which has worked on tasks with many restaurant chains which includes Starbucks. Even in pre-COVID moments, a Starbucks location using a drive-thru would generate 50 % more revenue than 1 without, Blackiston said. Starbucks uses different restaurant styles in different locations based on how these people expect consumers there for their services, making stores that highlight drive-thru and carryout choices more popular choices on provincial commuter routes.


Food & Drink

Shipping also is likely becoming a larger part of their business. Within the wake of the pandemic, several consumers could be more anticipating a drive-thru purchase along with built-in social distance, he or she said. “It’s very clear they made a strategic effort to develop off-premises business, especially drive-thru, ” Blackiston said. Whilst growth from a chain such as Starbucks can hit the particular registers of independent stores, DiPietro said the mom-and-pops have their own advantages too. They can quickly change their own menus to adapt to growing trends, while chains such as Starbucks are driven simply by corporate leadership that can consider much longer to adapt to brand new trends. There’s differences in consumer bases too, DiPietro mentioned. Starbucks is a hip selection among commuters and university students, while independents might just gather that crowd in the weekends. Otherwise, they’re depending on neighborhood residents and retired people to frequent them throughout the weekdays. “The small mom-and-pop coffee shops may be strong the weekend mornings yet may not be full on the weekday mornings, ” DiPietro mentioned. “I have a lot of university kids who go to Starbucks and find that to be a cool and trendy thing to do. inch


Food & Drink

Drip’s McCrossin won’t view the chain as immediate competitors, believing that they do not get after the same customer facets. He acknowledged there’s most likely some overlap, but he or she described Drip as experiential, with its individually made cups of joe and porcelain cups. With Drip’s two locations, the other is on Major Street, they specialize in producing coffee through the pour more than method. That’s a smaller amount method that’s meant to remove more of the coffee’s natural taste, while minimizing acidity plus oils. Plus, the store offers made-on-the-spot paninis plus biscuit sandwiches, along with other artist style goods like house-made olives. “(Starbucks) is doing all of the demographics, they see a flourishing growing city that taking place here, ” McCrossin stated. In a juxtaposition from indie shop against a business chain, the coffee shop Azalea Coffee Bar opened upon Devine Street on Apr 12. Just a block aside is independent shop, Blum Coffee, seemingly in immediate competition. Yet, Azalea’s proprietor Brittany Koester doesn’t watch them as having to contend with one another. She viewed self-employed shops in Columbia since all filling specific niche categories. For instance, Azalea Coffee Pub is focused on highlighting inclusivity and women coffee makers in its offerings. That operates through its entire shop’s identity, with specialty lattes it designates as influenced by women. Options consist of Orange You Glaad plus Queen Bee. “It’s different from Blum, they carry Counter Tradition Coffee (a popular high end Southeastern roaster), we’re finding coffee from different locations, tell the story behind this, ” Koester explained. Impartial shops like Azalea provide their own unique atmosphere as well. Drip’s Five Point’s location provides music records for sale plus captures a bohemian-like feel with its art and used wood tables. Azalea is usually decidedly modern, as is the neighbor Blum. The former provides a unique mural in the store and a minimalistic, white well developed interior, with splashes associated with pink adoring the wall space. Starbucks has attempted to catch it’s own modern visual worthy of hanging out, but the uniformity across its locations does not have much of the charm plus individuality offered by mom-and-pop stores. Starbucks’s growth in the Columbia area was surprising in order to Koester. “There’s definitely an industry for supporting local, inch Koester said. “The folks who go to Starbucks, nothing towards them, but I think these people still go to Starbucks. “



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