South Seattle Slew offers up a dose of snarky satire, southeast-style. He suggests you take it with a grain of salt, at least one glass of water after a meal, and avoid operating heavy machinery after reading:
Caramel macchiatos, cinnamon dolce lattes and peppermint white chocolate mochas. Just three of the scrumptious beverages not coming to a Safeway near you.
The longstanding partnership between grocery giant Safeway and coffee monolith Starbucks has been a fruitful one, earning both companies millions over the past decade. Their symbiotic relationship is such that hardly a Safeway in the Northwest exists without a Starbucks kiosk. Not only do shoppers get to enjoy a delicious corporate latte while they shop, Starbucks is provided with yet another opportunity to create jittery junkies for its mildly-addictive, hot, frothy stimulants. Everybody’s happy.
Everybody, that is, except for coffee lovers near the soon-to-be-renovated Safeway on the corner of MLK and Othello.
While the scheduled Safeway renovation allows for a Starbucks’ kiosk within the store, Starbucks is opting not to invest in the light-rail-adjacent market. Apparently Starbucks fears that a kiosk in the Safeway would suck business from the drive-thru only store a mile north at MLK, Jr. Way and Graham Street.
Let’s consider this. Shall we?
Starbucks, well known for putting multiple storefronts on the same block in more affluent communities, is betting that a walk-up kiosk a half-block away from a busy light-rail station and across the street from a major new mixed-use development would infringe on a business that only serves coffee to people in cars a mile away.
So much for sustainability. If you want a Starbucks’ mocha, you better drive. And no pedestrian walk-throughs allowed!
The good news is that we can expect very little Starbucks coffee to be spilled on the trains.
But why wouldn’t Starbucks want to invest in the Othello community?
It wasn’t long ago that Safeway failed to see the benefit of staying put in their Othello location and made plans to sell the property under a lease restriction that wouldn’t have permitted the new owner to open another market there. Fortunately, Safeway management was made aware of the opportunity that exists in the rapidly growing Othello Station neighborhood and reversed their position. Remodeling construction is due to start this month.
And it should be noted that Starbucks has no problem adding shops in business districts nestled up against affluent Seward Park and Mt. Baker. Some say the Starbucks location at MLK & Rainier is one of company’s most profitable in the city. The average home price around Othello is about $330,000; is that considered not affluent enough for Starbucks to invest?
Recently, Starbucks CEO Howard Schultz explained to shareholders how Starbucks is positioned for disciplined and strategic growth to drive market share, “The reframed Starbucks business proposition will deliver great coffee to every customer, in every format, and in every place they want it.”
Every place that is, but Seattle’s newest light rail community, Othello in South Seattle.
WTF?! Will Starbucks decide that a light rail community in South Seattle deserves the lattes, mochas and cappuccinos they sell to the rest of Seattle? Or will they continue to treat us like drips? Send your thoughts here!
Photo/do communications, inc.
Related:
- Othello’s “UnSafeway”: For Sale or Off the Market? (4/3/09)
- How Walkable Is a Neighborhood Without a Grocery Store? (3/21/09)
- ONA Takes on TOD, Residential Parking Zones & Safeway (1/27/09)
More from South Seattle Slew:
- South Seattle Slew: Snopocolypse ‘08 Slowed Rising Crime Numbers (1/16/09)
- RVP Debuts New Column: South Seattle Slew Offers Snarky Satire, Southeast-Style (11/23/08)
Who to know, where to eat & what to do in one of America’s most diverse zip codes!
{ 44 comments }
I advocate a mandatory Starbucks density…say no less than one per every five blocks?
See you at caffine rehab!
I don’t like Starbucks anyway.
Why would they invest here. What does the Othello “community” offer any business. I’m amazed Safeway even bothers to renovate. Your outrage should be directed toward the riff raff that make it so difficult to attract new commerce to the south end. clean it up and they will come.
It should be noted that the Starbucks at Rainier & MLK is across the street from Franklin High School, and is the modern day version of a malt shop.
Glad to hear they are redoing the Safeway. Can a local coffee brewer go in the Starbucks space?
“They tried to make me go to caffeine rehab and I said yes, yes, yes”
Screw Starbucks. Let an independent coffee shop open in Safeway — or even better, in the new building going up across the street.
Othello/MLK allows its residents to sell crack and also none of the proceeds are taxed, thereby going back into the community to support local infrastructure and services. Why should a corporation work to support a community that does not have the same requirement of its own citizens?
Isn’t that hypocritical? Shouldn’t this article be about how local gangs sell LOTS of drugs and spend that WEALTH on illegal ends, instead of supporting their own community?
The bottom line is that a cup of coffee is about the cheapest luxury almost everyone can afford. But there just might not be sufficient local demand to justify a Starbucks in the Safeway.
Two questions about why not in Safeway
1) How much coffee does the local demographic (income + ethnicity) drink?
2) Are the folks who stop in the drive-thru local residents or commuters?
Also is the independent coffee shop in that general vicinity that was previously mentioned in the RVP still around?
Hey, it’s not just Starbucks. Except for the Rainier Beach Safeway Starbucks, try to find a coffee house between Columbia City and Renton…
I’d think a pedestrian-friendly Espresso Stand with a few pastries would do great right near the station. What’s the zoning laws like for something like that? It would need to be close enough so people wouldn’t feel they might miss the train (or not hear/see it coming). Something similar to a taco bus that could perhaps also offer sandwiches, etc. might be perfect. I don’t think it needs to have a sit-down element at all.
I didn’t realize until now that the current Starbucks is strictly drive up. Very interesting – draw your own conclusions. The drive up on 1st Avenue also has an interior you can enter as a pedestrian. I think if the crime problems are addressed on the South End it will be the issue that will open up all the “missed opportunities.”
“Othello/MLK allows its residents to sell crack and also none of the proceeds are taxed”
Othello/MLK is a sovereign state? With its own law enforcement? …and an infrastructure to collect taxes? You learn something new every day!
I don’t think the point is about whether or not you like starbucks. The point is that starbucks is treating this neighborhood like a second-class neighborhood, and it’s even more outrageous considering the light rail station is right there!
Write a comment to starbucks (the link is above in the article), I did!
The bottom line is that they don’t think they can make money from the folks who will be walk in customers. Does anyone know if the other local coffee shop is still around? Either way, it probably was a point of data that Starbucks was smart enough to use in their decision. Starbucks isn’t a non profit.
When I lived in Oakland, CA, I was walking distance from a family-owned coffee shop that made some of the best espresso drinks I’ve ever had. Wow, do I miss that shop. Starbucks was trying to move in to the neighborhood, but the locals wouldn’t let’em. We loved our coffee shop too much.
Starbucks is convenient–you know what to expect–but it’s not good coffee. How about inviting in a family-owned cafe, or one of the smaller chains that actually make better coffee.
Quik cup (next to the UPS store), closed down a year ago. And frankly, their coffee wasn’t that great. So no, there is no coffee alternative, except the drive-through only version on Graham st, almost a mile away.
Also, if Starbucks thought that walk-up wasn’t profitable, then why do they put kiosks in almost every Safeway store? There is a walk-up kiosk in Safeway off Rainier (next to the Taco Bell/Hollywood video), there is one in the Safeway in Rainier Beach, and there is a Starbucks in QFC (Rainier Ave), just 1/4 mile away from the Starbucks near Franklin high school.
My husband says light rail at Othello is pretty packed during the commute times, and there is virtually no competition for coffee here. Why does it not make sense for Starbucks?
No worries…The Station at Othello Park’s 18,000 SF of new retail will include a coffee shop! Our retail brokers (POC – Craig Quarders – (206) 352-1101) are aggressively searching the market for an experienced operator to open in 2011.
Who cares? There’s no Dick’s drive in down here either.
WTF? Will Dick’s decide that a light rail community in South Seattle deserves the Specials, Deluxes and Malts they sell to the rest of Seattle? Or will they continue to treat us like Hams?
We can speculate as to the reason, but I bet the author is right: fear of competition with the Starbucks drive-through near Graham. If so, I have to say that is really sad. That particular location has to be struggling. It’s in a terrible location! With light rail running through MLK, it’s essentially situated on a one-way street, and the hair-pin turns in and out are ridiculous. What’s personally more upsetting is the affront this store makes on a community trying to embrace transit-oriented, sustainable living. I agree that the silver lining is the prospect for an independent coffee shop to take root (better in the new development at the SE corner than in a grocery store, anyway).
Maybe one of the Real Estate Reps for Starbucks might be interested in contacting Othello Partners (I saw their sign about leasing out space – 206.352.1101) about getting into the new building going up. I think it would be an amazing spot for them, if they can work that out with OP. http://assets.starbucks.com/assets/pfm-territories.pdf
Perry,
Here’s another way of thinking about it. Per Wikipedia ST anticipates 1,400 daily boardings at Othello Station. If you make the following assumptions:
1) 75% of boardings are headed downtown
2) 60% of these are between 6:30-9:30
3) 10% of these folks want a cup of coffee
4) Works out to 63 cups of coffee
5) Assume $3/cup
6) $189 in revenue a day or $3,780/month
7) Now pay your rent and expenses from this number
Now lets look at MLK. Per SDOT a busy urban street moves 700 cars per hour. So in the same 3 hour period we have 2,100 cars passing by – each of which has the opportunity to stop. I’m not sure that folks on the light rail will get off to get a cup of coffee as it probably impacts their trip by 15-20 minutes while a car commuter will only experience a delay of 5-10 minutes.
Assuming the same 10% number we have 210 coffee customers. This translates to $12,600 in revenue. As for the location it is wisely sited for the following reasons:
1) Folks drink coffee in the morning.
2) They are headed north to downtown.
3) They are driving.
4) A nearby walk up coffee shop shut down.
Now does is it clear why the drive thru makes sense and the Safeway location doesn’t? While I sure hope that a good entrepreneur proves Starbucks wrong I think their years of business experience probably made a good decision here.
A Dicks drive in might be good. Ever since Dags left, there has been no hamburger presence in that area. Perhaps there is a way to combine a Dicks, Starbucks, and Trader Joes into a royal triumvirate of sorts, Traderdicksbucks or some such.
Delighted to hear Othello Partners is actively seeking a coffee shop tenant. I also hear that a coffee shop/book shop/bike store is slated for a small spot on the NE corner of MLK and Othello, probably opening next year. Both sound like great plans to me!
@Tom T, your analysis needs to take into consideration the other hours of the day, the cross-commute in the evening, and the in-store traffic of Safeway and the customers for Starbucks it creates. Then your numbers will make more sense.
Briktu,
I’m looking forward to your analysis!
Realize that I heavily weighted what I did in favor of Light Rail riders:
1) I assumed 45% of 1,400 Daily boardings consider getting a cup of coffee between 6:30-9:30am.
2) The amount of coffee consumed later in the day is marginal.
3) In my experience people shopping at Safeway don’t buy a cup of coffee rather people stop in solely to get a cup of coffee and leave. There might be a handful – 10 cups/day- that get the cross sell.
4) Bottom line I look forward to your analysis but I doubt the numbers change dramatically unless you dramatically increase the number of coffee drinkers.
All the best,
Tom T
More people in Safeway might buy coffee if the shopping carts had cup holders (and maybe air bags and GPS too–”where are the Wheaties…oh yeah, GPS says aisle 5, I’ll need a few more sips of coffee to get there”)!
@Tom T, er, I’m not going to do the analysis. I’m just pointing out that your methodology needs to be more refined, since your analysis seems to be the main thrust of your conclusion.
Also, “in your experience”, is that a quantitative factor for your methodology? Man, I never hang around the kiosk for more than the time of my order, but if you do traffic counts at kiosks, I could probably hang my hat on your numbers then!
I second the motion for a Traderdicksbucks
Briktru,
The bottom line is that Starbucks -and any market based company – do base their conclusions on their analysis. Analysis can be flawed as assumptions must usually be made. I drink alot of coffee and do pay attention to what is going at the counter. I still can’t figure out if a packed Tullys means that the economy is good (folks have extra money to spend) or bad (they are out of work and they want to feel good by treating themselves to a small luxury). Bottom line – Starbucks is viewed as real estate mastermind – they have tons of info and know how to pick the best spots.
Welcome to the USSA, where corporations own government because to simply say corporations rule this country is not politically correct. So, by willfully allowing corporate fascism to replace our lovely freedom-loving republic, no one here seems to have the right to judge that which they have voted for, or have passively allowed. To whine about the corporations is to whine about that which you yourself voted for — corporate fascist power, in all its glory. And it doesn’t care what you think.
Keep voting by shopping at Safeway, Walmart, McDonald’s, Comcast, Charles Schwab, Shell gas, BP gas, Toyota, Honda, and Nike, and stop being so hyprocritical. Embrace fascism because it’s all you have now.
Yep, North Korea is looking better everyday.
Does it really boil down to a choice between corporate fascism or North Korea? Please. Use your imagination and I’m pretty sure you can think of a better alternative to both.
Go for authenticity people! Columbia City Bakery & FullTilt were just mentioned in the NYTimes:
http://travel.nytimes.com/2010/05/16/travel/16choice.html?hpw
I’ve bought coffee at the Graham Street drive thru a few times to support the neighborhood. Business is brisk and the barista’s are all nice people but it’s the size of a phone booth, the drive thru lanes are made for mopeds and bikes. A pain to get in and out.
Sadly, this is as good as it gets for a Starbucks on MLK. Don’t expect much from the guy that sold the Sonics.
@Tom T
Yes, I agree that Starbucks analyzes this stuff, but there are many factors, such as internal operating plans, budgets, etc…that influence the decision. I think your sideline analysis is built with partial assumptions, and assumptions that are faulty, but I understand your bigger point; “Starbucks analysts have concluded it doesn’t work, so deal with it”.
And I think the bigger point is also false, because Safeway made the decision to sell the property, then did a 180-degree about-face during the height of the recession and committed to a $3MM remodel. It took corporate outreach (this is when communities reach out to corporations), to change their minds. So make all the assumptions you want, but I don’t think anyone knows what is driving this decision right now.
But why do you want Starbucks?
Do you need their approval that the neighborhood is okay? It’s not, othello/mlk is sketchy in daylight and ?? after dark. This is a big deal for all the businesses and has to be addressed.
Every dollar at Starbucks is drained from the community as fast as interest at Payday Loans. Same with McDonald’s, Subway, etc… Focus on backing strong local businesses that provide quality service at competitive prices, rinse and repeat. Soon a neighborhood will emerge.
Er, Starbucks is a strong, local business.
Briktu,
How is the Safeway remodel coming along? I rode past on the light rail earlier this week and it doesn’t look like its moving forward. Any insight on the status? I hope they weren’t BSing us.
If you call my assumptions false, please share hard data that disconfirms them. Otherwise they are just my assumptions and are neither false nor facts but rather assumptions. Agreed that there may be other factors but the bottom line is that this isn’t risk that they felt worth taking. Bottom line is that businesses go to where the money is. Point in fact, Metropolitan Market closed down their Point Dash (Federal Way) store and built one at the same time in Kirkland. The Point Dash store was very nice in a nice neighborhood. But Met Market determined that they were better served deploying their money to Kirkland.
All the best,
Tom T
Briktru – Set your standards higher for coffee. Lobby for a cafe vita, all city or peets coffee but charbucks?!!?!?
Yes, Davis. You’re right. I should put my rose-colored glasses on and believe that Cafe Vita, All City or Peets would locate here and start up a new coffeehouse, rather than a company with tons of capital and easy access to an in-store kiosk and light setup.
I’m lobbying for the quickest, easiest coffee setup for the Othello neighborhood, bad position? You’re lobbying for Othello to magically be considered something different to local companies who haven’t set up here before, and won’t set up here now without some major incentives. Or is that just hipster snobbery? Probably both.
@Tom T, take your sensi pants off. Your analysis was half-ass. Just acknowledge that and move on.
Remodel got pushed back to June, no idea why.
Keep waiting for that remodel.
Kathy,
What makes you think you still have a choice about living in a fascist, corporate-run country? We are already here. Just look around you. Imagination not required.
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