My Morning Coffee…A Soy Latte
October 25th, 2009 categories: Personal Notes
This morning I started things off right…with a workout and a Soy Latte. I usually hit the 24 Hour Fitness in Petaluma early, spend 60 – 90 minutes there and then head over to Peets Coffee on the Boulevard and get something to help wake me up.
Each time I go in and sit down at Peets, I think back to graduate school. We did so many Business Case Studies it was crazy. The Harvard Business Case that I think of when I am sitting in Peets is the ”Starbucks Case.” The premise of the case is trying to answer the questions: “How does Starbucks sell a $4.00 cup of coffee.” Bottom line, to save you some reading, some time, and some money (Harvard charges you to download their Business Cases) it comes down to the “Third Place.”
What is the third place you ask? Well, in the lives of many, there are usually 3 places…work, home, and “the third place.” The third place can be different for all people..maybe the gym, maybe a certain store, a certain restaurant, a friends house, or maybe a coffee shop…really just any favorite hangout other than work or home. There can be a fourth and fifth place, but research shows the third place gets the third most attention in someone’s life, and presumably a larger portion of their wallet than the forth or fifth places.
Starbucks, Peets Coffee, and other coffee houses are more about the place than the coffee. I happen to prefer how strong Peets coffee is relative to other brewers. I would rather have a Peets in Cotati than have to travel to Petaluma or Santa Rosa, but if I am near there, I will stop in.
McDonalds is now on this McCafe push. I do not picture people sitting at the plastic molded booths in the local Micky D’s for designer coffee, currently. UNLESS McDonalds does some sort of retrofitting to a more hip “third place” and not about cheap food, I really do not see this as a successful venture. Perhaps people will buy a more expensive coffee at McDonald’s instead of a soft drink, but I think the margins on the coffees are a lot lower. McDonald’s may also capture some of the drive through market due to the many locations, but I do not see McCafe being synonomous with designer coffee.
Out of convenience, I have met clients at Peets and Starbucks, and never anticipate telling someone to meet me at the McCafe, even if the coffee is half the price of competitors. I am digressing…anyway, I had a soy latte this morning…not sure where I got on that rant.
