Entertaining the idea of opening an espresso bar next to a big box coffee co.

[jruppert]

Hello everyone. Ive been a member in this forum for a while for research purposes but never really posted anything. I have wanted to open a coffee shop (more specifically an espresso bar) in a college town for a few years now. The town itself has around 13,000 people and the campus holds approximately $13000 people. We have two coffee shops. One being a Starbucks, which is difficult to get to because it is located on campus. The other is a Biggby. Biggby is a coffee shop franchise located in Michigan. I personally would rather drink Starbucks than Biggby.

Anyway, the Biggby is located on the main street that runs through town and the University is located on the other side of Biggby. Ideally I would rather be in a downtown location. Unfortunately I feel as if it would be difficult to market a coffee shop downtown. There is a building that has been vacant for a number of years that is located next to Biggby. I have been toying with the idea of opening an espresso bar/panini grill next door.

In my opinion, Biggby (and Starbucks) is the fast food version of coffee. I want to provide an environment where people are able to get a real shot of espresso and a coffee that isnt poured into a paper coffee cup. Obviously there is a lot more to branding a business than what I have mentioned but the ideas that I have really position myself pretty far from the likes of Biggby and Starbucks.

I can see two sides to the argument or concern. One being that you are positioning yourself next to a large competitor with large amounts of capital and it could be considered hostile in some ways. The other side I see to this marketing strategy is this.. Biggby spends thousands upon thousands to market their product. People already know they are there. If I position myself as a better alternative to their coffee and the espresso experience being better than what the public is use to than I feel I would have an edge. Obviously there will always be people that will purchase Starbucks and Biggby and swear by it. But there has to be people that want a better coffee.

What do you guys think?

 

[jeffjives2java]

Hey jruppert,

I was living in Michigan for several months recently (Ann Arbor) and I think your concept would be well-received. There's a lot of appreciation in my opinion for community-based, personality-focused business small business initiatives. Might I ask whereabouts this situation is referring to?

Additionally, though you're probably leagues away from considering this type of stuff, I work with a company that provides unique Social Technology via innovative Point of Sale systems to small Cafe owners like (potentially) yourself. It's a great tool ESPECIALLY for people in college towns, where Social Media is massively popular and ubiquitously utilized. Check it out at Own — Unlike any other. and let me know a little bit more about your idea and whereabouts, perhaps I'll know someone in the area who could be of assistance.

Regards!

 

[CoffeeCrazed]

I can see two sides too. As you are in a college town then how does the cost of your product affect your likely market. Would students be willing to pay more for your coffee/food than Biggby's? I ask because if Biggby's is a large franchise then they may be benefiting from the economy of scale while you as a smaller one man band will not.

Will students be attracted to the idea of a mavarick opening up next to the 'establishment'. In my student days (admittedly so long ago that they are all but forgotten), this would be an attraction. But the reality is that in these tough times, perhaps the deciding factor for most people will be cost.

I do think that there are always going to be people that demand a better quality - but are there enough of them in your town? Have you done any research on this?

 

[jruppert]

The town that I am from is Big Rapids. I would have to say that a coffee at Biggby is as much as a coffee at Starbucks if not maybe a little more. I really hate the coffee! It is really frustrating for me to want a coffee when I am out in town. It is either Biggby, Starbucks, or McDonalds. As bad as it sounds, I would rather go to McDonalds then to shop at Biggby.

As far as the research, no I havnt done any yet. I do have a Marketing degree from the University in Big Rapids. I wouldn't dare start a shop without further research.

My intentions were to start a business and market to the quality of coffee and the variety of coffee as well. You go to these larger coffee shops and they limit themselves to a couple styles and is all they sell. Also, you get a paper cup regardless if you are staying or leaving with your coffee. I would also market my business to sell sandwiches and soups. I like the idea of a Panera Bread style business along with the coffee/espresso.