Posts Tagged ‘independent businesses’

Starbucks or McCoffee? No thanks

Starbucks is spending big ad bucks to gain the upper hand in its coffee confrontation with McDonald’s McCafe. What’s important to me about this duel is the false — and ultimately unsustainable — choice this campaign sets up. (UPDATE: McDonald’s announces huge promotional blitz for McCafe.)

According to Ad Age:

The high-end coffee retailer is breaking a series of long form, full-page newspaper ads Sunday (May 3), designed to tell the brand’s “story” while warning consumers about the dangers of trading down. It’s all part of its effort to combat consumer perception about its prices and separate itself from McDonald’s expected mass-market assault for its McCafe launch. Starbucks’ print ads, designed on burlap-sack backgrounds, have headlines such as “It’s not what you’re buying, it’s what you’re buying into.” The ads lay out what separates Starbucks from the competition, such as its practice of buying fair-trade beans and providing health care for employees who work more than 20 hours a week.

Living in Portland, Ore., I can tell you that Starbucks doesn’t separate itself from the competition on the basis of fair-trade, health care or other laudatory practices. That is, if you consider Starbucks’ competition to also include the locally owned, independent coffee merchants and cafes, which we in Portland enjoy throughout our great city.

In the battle of national, publicly owned retail chains, mom & pop’s and larger independents are a complete after-thought. And yet they are the ones who suffer most, along with the communities that are so much better off for having them around. Think Wal-Mart and its devastating impact on local economies and small local businesses as it tries to mow down big-box competitors like Target. The loss of the local independents are simply collateral damage in the national and global business wars.

Assuming I had no other options, I would choose Starbucks over McDonald’s because it’s a more socially and environmentally responsible corporation. That’s what Starbucks wants to hear. What they don’t want to hear is that I actually have dozens of great coffee options and none of them involve McDonald’s or Starbucks. My choices are local and they’re sustainable. I don’t care to choose between who’s less bad. I want to support the business owners who genuinely care about my community because this is their community, too. Large publicly traded corporations ruled by the financial bottom line are “dead ends,” as one socially responsible investment advisor I know asserts. Starbucks may be more responsible than McDonald’s, but that doesn’t make them sustainable.

To borrow the Starbucks advertising punch line, what I’m “buying into” is local.

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