Will Starbucks' Local Branding Work?

by Nathaniel Whittemore · 2009-09-08 15:42:00 UTC

When a chain grows so big that it loses the original feeling of intimacy it tried to cultivate with it's customers, what can it do? As it fights against the perception that it's the unfeeling corporate giant, Starbucks has begun to experiment with locally designed, non-Starbucks branded franchises. The question is will their version of "local" work?

There's something of a push for local institutions these days. The ever growing web of digital infrastructure around us has put us in longing for the human contact that has forever driven community. Indeed, the websites of today and especially of tomorrow are more and more all about how to connect with real people, offline.

Starbucks build its brand by connecting the style and quality of a European coffee house with the convenience and simple attitude of a local store. As the chain has exploded over the last decade however, it's been harder and harder to keep that local feel alive. Instead, Starbucks is increasingly perceived as the invading outsider trampling on the local feeling.

Enter 15th E Ave Coffee and Tea, Starbucks' new "local" brand that does not brand itself as an affiliate of Starbucks. On the "Strategy for Sustainability" blog a couple months ago, members of Saatchi & Saatchi S asked whether this could ever really embody community building values? 15th Ave is supposedly going to do all of the art shows, coffee tastings, and musical events that make people love their neighborhood coffee shop.

At the end of the day, I think that every coffee place builds its brand around a different set of factors. Convenience is prime; people go the place that has what they need. Quality of product can be a brand element, but frankly doesn't always have to be. Ambiance is essential and I think what will (or won't) make 15th Ave successful. If it has the sort of faux-local feel that places like TGIF, Panera and, frankly, Starbucks, it will only go so far. If it actually has a funky, custom feel to it, it could be a success.

And what about the question of deception? Is it deceptive for Starbucks to build these sort of chains? Maybe, but it doesn't particularly bother me. People are pretty savvy, and if these new locally-branded stores are a valuable addition to their community for one of the reasons above (or something else entirely) they'll likely be a success.

What do others think?

(Photo via PSFK.com)

Nathaniel Whittemore is the founder of Assetmap. Previously he was the founding director of the Northwestern University Center for Global Engagement.
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