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March 15, 2013

Starbucks Vs Local Coffee Shops

Here at Made Urban, we like to encourage supporting local businesses. We prefer the motto "support local....when you can". We know it's not always possible, convenient or cost effective to purchase from a locally owned, independent business but when the situation allows for it, we say go for it! 

Did you know there are 50 Starbucks listed for Edmonton? 50! I'll admit, I grab coffee from Starbucks once and a while, which makes sense seeing as how you can't go more than a couple blocks in this city without running into one, but imagine how many local coffee shops in Edmonton would benefit from just a fraction of Starbuck's customers.
I honestly don't know a whole lot about Starbucks and how they conduct their business but if we take a quick look at some of the statistics regarding big chains and do some rough estimating, you can get an idea of why supporting local, independently owned businesses is so important:

For every 2 jobs a big corporation creates, 3 jobs are lost due to local businesses closing down

If we do a rough estimate of 7 employees per Starbucks location (based on 20,366 Starbucks locations and 149,000 employees worldwide) that's 350 employees in Edmonton which means: 525 jobs lost due to local businesses closing down.

Local Businesses return 50% or more of their revenue back into the local economy while big chains return as little as 14%

Based on Wikipedia's stats on Starbucks, we can say the average location makes $652,558 revenue in a year. That's $32,627,909 in Edmonton based on it's 50 locations. If that revenue went towards local coffee shops: $16,313,955 would go back into our local economy That's $11,746,048 more than Starbucks would put towards things like;
  • local accountants
  • insurance brokers
  • contractors
  • designers
  • signage companies
  • cleaning companies
  • computer consultants
  • advertising agencies
  • food vendors

Starbucks has their pastries, breakfast sandwiches, milks and yogurts shipped in while many local coffee shops offer fresh food made or supplied by local producers.

Shifting just 10% of a community's spending towards local businesses would significantly increase local economic activity and create new jobs

Taking 10% of the money that goes towards Edmonton Starbucks in a year would put: $3,262,791 towards local businesses
Who do you think would appreciate that $3million more? Local businesses who rely on each customer to keep their doors open, or Starbucks who already makes 13.29 BILLION/year from their 20,366 locations in 61 countries?

There are a few other facts I found interesting on Business Insider's website while doing a little research on Starbucks:
  • The stomach on average has a capacity of 900 ml which is slightly smaller than the biggest size at Starbucks - Trenta which holds 916 ml
  • A Starbucks grande coffee has 320 milligrams of caffeine, which is over 4 times the amount of caffeine found in a Red Bull.
  • Mcdonald's Quarter Pounder is 430 calories w/ 29 grams of fat. Here are the calories and fat for some Starbucks food items:
    • banana loaf 430cals 17g of fat
    • blueberry scone 460cals 22g of fat
    • chocolate chip cookie 440cals 21g of fat
    • double chocolate brownie 430cals 25g of fat
    • lemon poppyseed loaf 470cals 22g of fat
    • white chocolate macadamia cookie 480cals 26g of fat
    • sausage egg and cheddar english muffin sandwich 500cals 28g of fat
Not that you should go and eat a Quarter Pounder instead ;) as they're also really high in sodium but it gives you a comparison
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