A new Starbucks opened on Friday Sept 27th, in place of the old McDonalds on PCH and 11th in Hermosa Beach, across the street from a Starbucks that has been there since 1998, offering a fresh atmosphere for coffee in the community.
Placing two Starbucks locations directly across the street from one another, along with one inside the Vons just down the road, could prove to be a disadvantageous strategy.
Opening a new Starbucks with such close proximity to an existing location could reduce business at the previous store, especially since the new store is larger, newly renovated, and features a drive-thru, offering more convenience and visual appeal than the other Starbucks location.
Starbucks barista Sophia Hadwick claims that the new Starbucks across the street will likely draw customers away from the older location, mainly because it’s larger, flaunts more modern features, and offers indoor seating and bathrooms.
The older Starbucks is expected to close once its lease expires. While this may bring relief from a business perspective, the lease still has plenty of time before it’s up, leaving space for the new Starbucks to establish itself after opening.
Opening a Starbucks so close to another affects the employees. After the lease expires and they have to move, employees aren’t going to have a place in the new Starbucks. It is already going to be filled with employees and there won’t be enough openings for all the new ones. Causing the old employees to be out of jobs and have to move to another location, or find another job.
Employees are expected to receive the same base pay as before, but with fewer tips due to the lesser number of customers.
Students from Hermosa Valley Middle School will be thrilled when the new Starbucks opens, mainly because they get the choice of three Starbucks in the area and can sit down at the new one. Additionally, they won’t need to cross the street to reach Starbucks, which some kids may appreciate since they find even walking across the street to be too much of an effort.
Found the Starbucks location strategy. They open up across high-traffic streets from each other to attract more customers. People often want coffee at a particular time, and rather than going out of their way to find a place, they’ll choose Starbucks because it’s conveniently located on a busy street. It’s easy to spot and grab coffee on the way to work, home, or school.
And since this new Starbucks is easier to access, it will attract more customers than the older competing one.
The new Starbucks offers a more spacious and comforting environment for customers and baristas. It enhances the older location while providing a fresh option for people to enjoy their coffee.
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