Brewing Success: How Starbucks Boosts Small Business Growth

A new study from two of Columbia Business School's brightest minds, Jinkyong Choi and Jorge Guzman, reveals a striking correlation between the opening of Starbucks locations and a subsequent increase in local business activity. Specifically, neighborhoods witnessing the entry of their first Starbucks saw approximately a 5% uptick in new businesses compared to areas without such an addition. Choi and Guzman join this episode of Paychex THRIVE to discuss this phenomenon and share why Starbucks, with its inviting atmosphere for lingering and networking, is accelerating small business growth.

 

Topics include:

00:00 – Episode preview and welcome

00:53 – Welcome and introduction of guests

02:28 – Jorge Guzman’s background

03:15 – Jin Choi’s background

03:54 – Overview of Choi and Guzman’s study

05:53 – Impact of Starbucks on local entrepreneurship

07:16 – Comparison with other coffee shops

09:52 – Starbucks' role in supporting freelancers

11:17 – Methodology of the study

13:16 – Is Starbucks choosing growing areas vs. causing growth?

14:28 – Implications of zoning board decisions on Starbucks locations

17:01 – Data sources for the study

18:02 – Impact of COVID-19 and study considerations

19:02 – Takeaways and strategies for small business owners

20:47 – Benefits of opening a business near a Starbucks

23:17 – Discussion on research about Starbucks and neighborhood entrepreneurship

24:28 – Wrap up and thank you

 

DISCLAIMER:
The information presented in this podcast, and that is further provided by the presenter, should not be considered legal or accounting advice, and should not substitute for legal, accounting, or other professional advice in which the facts and circumstances may warrant. We encourage you to consult legal counsel as it pertains to your own unique situation(s) and/or with any specific legal questions you may have.