Now I’m a huge fan of Starbucks. I love a good latte and have in the past been a daily “user”….
Recently though, I’ve found myself going out of my way to go to some other bakeries in the area to get a coffee and a pastry of some sort…why? Free Wi-Fi. Starbucks has Wi-Fi but they use the t-mobile hotspot that requires a subscription, that varies from $6 for an hour, to $29 per month.
Panera Bread specifically has started to become a place of note in my life because it is a Wi-Fi oasis of sorts. It’s got to the point where I know where the nearest Panera Bread is depending on where I am in the neighborhood.
Now I’m not sure how many people there are who are so addicted to Internet access that any free Wi-Fi thing is going to be a place of note, but for me it’s changing my buying behavior. Sure Starbucks is better coffee, and generally a better experience, but Panera Bread has ok coffee, ok experience, better sandwiches, and free Wi-Fi. For me, that wins most of the time.
IMHO as Starbucks morphs into an entertainment (music/movies) company free Wi-Fi is going to be more essential to the rest of their business. I mean they sell a tonne of CD’s and I know their opening some hybrid music/coffee “hear music” stores, and recently they’ve been promoting the Akeelah and the Bee movie.
In fact, if they were giving away free Wi-Fi they could gain control of that first landing page, because right now the first thing that I see when I log onto a Starbucks Wi-Fii is a bunch of marketing material for T-Mobile. When you log into a Panera Bread network, you get the chance to sign up for the Panera Bread newsletter before you go online.
Clearly free hotspots are part of the strategy
I am a huge Starbucks fan as well. I have discovered a small independently-owned cafe with free wi-fi and not only do I love to go there to surf or play Socom on my PSP, I feel like a champion because I encourage the local economy. In the Land of Tim Hortons, it can’t be easy for a small coffee shop to differentiate itself, but a cool ambiance + free wi-fi = new customers. I know I would not instinctively have gone there had it not been for the free internet incentive.
I find my loyalties split. When I’m relaxing and just want a cup of Joe, I go to Starbucks. (There’s one less than a mile from my door.)
But when I want to do business, I travel a few miles farther to a Panera with free WiFi.
Like you, I suspect that Starbucks will inevitably shift to free WiFi. They have too many offers on the table (music, movies) to miss out on this opportunity for self-promotion.
Guys –
Panera coffee seriously sucks. As does their bakery. What’s worse, the whole place just feels like a giant Poser. They *have* to offer free Wi-Fi, otherwise the only people there are parents with toddlers.
Coffee houses offering free wi-fi have a problem. You get what my friend Steve, who owns The Ugly Mug has – people using wi-fi stay too long and spend too little, while commuters getting a latte to go are the real source of profits. “Turnover” is key to profit for restaurants – and coffee houses are eating establishments. Have I paid for wi-fi at Starbucks? Yes. Did I like doing it? No.
Starbucks is good mainly because they are everywhere in Southern California. But like the others who have alternatives, I prefer Diedrich’s because they have free Wi-Fi and they have more coffee choices. Starbucks is number one by a large margin, but that’s not to say they are without competition.
Ann:
Are my eyes deceiving me? Are you defending . . . Starbucks??
Yeah, Panera’s coffee does suck — a thin, bitter brew. But the salads are good. I don’t touch the baked goods.
Don’t get me wrong — I am a total Starbuck’s user. It’s just that ***enough already*** with their “branding story.”
p.s. I was wondering when someone was going to call me on leading today with a Starbucks story, after my bit earlier this week! (And by the way — the graphic is called “Mona Latte.”)
Ann:
I WAS going to call you on it, but I thought better of it. No need to rub anyone’s nose in the coffee grounds.
who knew this would be a hot button
but i’m not loyal in the slightest, i’m just about satisfied, but ready to jump ship and head back to starbucks as soon as the wi-fi thing is free.
Panera is one of those places with an “inconsistant” experience. I’ve had a very good chicken cesar salad, good pannini’s and totally undercooked pannini’s, good service and totally ignored at the front counter while 6 or 7 people are doing ‘other things’, and they have mediocre coffee. These are things I tolerate, and keep going back for, because of the free wi-fi. Now the problem panera has is that I appear, by all traditional marketing measures to be a loyal customer
Here’s a tidbit about Panera. They started in St. Louis (their local spots are called St. Louis Bread Company, but it’s really Panera) — and in the 2 years I lived there, my choices of local coffee shops with free wi-fi were huge. Nearly every place had its own… maybe to do with so many local Paneras. Only a few required payment — one 24-hr gig and Starbucks, of course. After that’s taken away, the choice was more about avoiding crowds (Panera at mealtimes gets crazy), atmosphere, and plugs. Seriously. Plugs in the wall. And not all of Panera’s food may be great, but at least they offer it for those who are in for the long haul of getting work done. The good thing is that, like “Spamouflage” mentions in their post, locally owned places are getting the best of all worlds together – decent food, nice relaxed, personalized atmosphere, AND free wi-fi. That wins for me every time.
i’ve had the worst experience of my life with T-Mobile HotSpot and T-Mobile customer service. or should i say … customer disservice. i avoid ‘Bucks like the plague and make a bee line for free internet. there’s a local shop nearby that gives you an hour of access when you buy a cup of joe. T-Mobile HotSpot isn’t that fast and its SOOOO expensive. doesn’t make any sense. i can’t imagine they’re making money at this racket. DON”T USE T-MOBILE. FOR ANYTHING.