Corporate vs. Local Brew

Brew vs.

Local Brew Starbucks’ arrival to Traverse City stirs up competition with local businesses

by: MALLORY SWOPE staff writer

Since the initial announcement in 2016, Traverse City locals have anticipated the fresh, new aroma of Starbucks’ first stand-alone location in the area. In it’s entirety, the project took over three years with the demolition of the previous Arby’s building and the construction of the new 3,402 square-foot structure that is now home to Starbucks and a retail property awaiting tenants. Starbucks is just one of the many corporations to have filtered into Grand Traverse County in recent years, the more notable of the brew being Costco, Home Goods, Hobby Lobby, Uber, and, of course, Starbucks itself. Annually, Starbucks brings in tens of billions of dollars in revenue through its 29,000 locations worldwide. With the opening of the new location, Starbucks has expanded the potential for economic growth in Traverse City as well as the growth to come for the farming communities previously mentioned. The Starbucks Reports of their third fiscal quarter in 2019 disclosed that they were able to return 581 million dollars to their shareholders, and that’s just a fraction of what they made in their 13 week fiscal period. In order for local coffee shops to generate even one billion dollars in one year—four times as long as it takes Starbucks to make an amount exponentially larger—every single person in Grand Traverse County would have to spend tens of thousands of dollars exclusively on coffee. Despite the fact that Starbucks has stepped up as a major contributor to Traverse City’s economy, Madeline Michutka ‘22 pointed out that there isn’t as much culture or identity to be found in a company with such an expansive economic and political frontage. Franchised companies bring something else to the table that is incredibly important to any city and its economy: jobs. Brynna Wesley ‘20 works for Starbucks and absolutely loves it. “They have this program where I can transfer out to California when I go to college really easily,” she said. Being born and raised in Stanford, California shaped how Wesley views Traverse City. She recognizes that it is a small town and the support offered to local businesses is a priority, but she feels as though this support only lasts as far as Front Street spans. “A lot of people get overheated about things they don’t even support in their day-to-day lives,” she noted. In Wesley’s eyes, this is especially true when it comes to the struggle between Cuppa Joe and Starbucks; she sees the issue as having much deeper roots and something is only being said now because “... there’s some tangible evidence to be mad about.” The introduction of Starbucks, an incredibly powerful corporate coffee chain, to the area threatened to send local businesses—specifically other coffee shops and bakeries—frothing. Since Starbucks’ day one, there has been a consistent line wrapping around Starbucks’ drive-thru into the parking lot while Cuppa Joe’s drive-thru directly across the street... not so much. Michutka observed this trend and acknowledged that “...some local businesses might not flourish as well as they were [before Starbucks came].” Within the mere weeks that it has been open, Starbucks has made itself very well-known to Traverse City and especially to students at CHS; the sight of students returning from lunch carrying cups with the image of the nautical creature that the company derived its name from has become common. The convenience of the location is not the only thing persuading students to purchase goods from the corporate chain. Teens’ use of social media is taken advantage of by franchised companies with a vast social media page in order to attract a larger crowd of customers; the advertisements of the newest drink coming out or the unbeatable promotion of the day appeals to consumers and lures them into the store. However, this is something that is difficult for local companies to achieve. Having such an extensive social media page is costly in both time and money which are both limited resources for local businesses. Sandi Daley opened the drive-thru location of Cuppa Joe in the Spring of 1999 with “...the love of coffee, community, and hospitality” in heart. It emphasizes a small-town coffee shop vibe, making the customer ex

perience at Cuppa Joe is unique. Daley and the rest of her staff “...pride [themselves] on serving locallysourced coffee and establishing relationships with customers.” According to Daley, the personal connection and local sources her business offers to customers keep them coming back for more whereas Starbucks focuses more on the efficiency of getting drinks out quickly. Within the few weeks that Starbucks has been open, Daley confirmed that business has been slower than typical. Whether it be because of Starbucks’ presence or the fact that it’s the “off-season” has not been determined, but “[Cuppa Joe] has received a substantial amount of attention and support via social media, and that has been both heartwarming and encouraging to [Daley].” Cuppa Joe is not the only locally-owned coffee shop facing the competitive-threat of Starbucks’ presence. Morsels Bakery and Café has been in Traverse City at its physical Front Street location and shipped across the country since 2008 when Misha Neidorfler and her husband, Jeffrey, previous architects and designers, “...[grew] kind of tired of the corporate world and wanted to do something different under [their] own control.” They settled on a coffee shop that offered bite-sized baked goods, also known as the morsel, and their products have drawn people in ever since. Despite Michutka’s predictions regarding the threat of Starbucks’ appearance in Traverse City, no fear has come to mind for Neidorfler regarding her pace of business, and she “...didn’t even know [Starbucks was] open yet.” She believes “[Morsels just does] a different thing than Starbucks does, and [they] have a different atmosphere.” Regardless of being in the same industry, the differences in blends of products each company offers draw in diverse crowds according to Neidorfler. The Neidorflers see this difference as a cushion for change they may see in business due to Starbucks coming to town. The other buffer Neidorfler sees protecting Morsels is the sense of community among businesses of Downtown Traverse City that is supported by locals. She believes that “...a lot of people [in Traverse City] remember when downtown wasn’t thriving, and they understand that participating in it and supporting it is what keeps it alive.” There is a commonality throughout Traverse City’s coffee shops in spite of whether they are locallyowned or not. Each business prides itself on the community formulated by its business and services, but at a much different level. Starbucks’ “community” has a worldwide reach with locations on every continent except Antarctica while Morsels and Cuppa Joe’s reach doesn’t extend much beyond Traverse City. The demographics of each respective cafe are, yet again, vastly different from the other; with the brand name backing its reputation, Starbucks locations draw the attention of hundreds of locals, tourists, and visitors due to ease of access while local coffee shops such as Cuppa Joe, Espresso Bay, Good Harbor Coffee and Bakery, Aroma’s Coffee and Tea, and Morsels recruit a more consistent brew of local customers. The question that seems to be percolating here is whether or not support of corporate companies will hasten the demise of small businesses like Cuppa Joe, or whether there is a middle ground, where both coexist and prosper, creating a medium roast of business and economics. Traverse City’s emotional heart is found in its small businesses, or as Daley puts it: “Our small, independent, locally owned businesses are what give TC it’s uniqueness and charm, but there is a demand, and that demand can be met if [small and corporate businesses are] balanced properly.” //