Coffee competition heats up with new arrival of Starbucks shops in two Ames’ Hy-Vee stores
June 7, 2004
Two new Starbucks coffee shops will soon be opening in Ames, but local economists and coffee shop owners think their impact will probably be minimal.
Starbucks will be taking up residence in both of Ames’ Hy-Vee locations. The tentative opening date for both shops is Monday.
“Everybody is really excited,” said Monte Streit, store director of the Lincoln Center Hy-Vee, 640 Lincoln Way.
Streit said he believes Ames is so diverse that Starbucks will fit the entire community. The hope is that people will come to Starbucks while they shop and relax with a cup of coffee.
Tom Gard, store director of the West Ames Hy-Vee, 3800 W. Lincoln Way, said Hy-Vee really wanted the Starbucks signature in its stores.
Gard said Starbucks’ standards are very stringent. There should be no difference between a cup of coffee bought in Seattle and a cup bought in Ames.
Starbucks opened its first store in Seattle in 1971 and has steadily grown from having 84 stores in 1990 to having more than 7,500 nationwide today.
Gard said on a recent store tour he gave to a group of seventh and eighth graders, he asked how many of them had ever had Starbucks coffee.
To his surprise, nearly half of them raised their hands, he said.
“Starbucks has this attraction. People are drawn to it,” said Georgeanne Artz, economics extension program specialist.
Artz said he believes Starbucks stores in areas along the coasts attract younger people with higher incomes, but said it could be different in a more rural place like Iowa where there isn’t as much availability.
Artz doesn’t foresee coffee shops lowering their prices to compete.
Despite the unique atmosphere that Starbucks offers, Artz believes that some people might be turned off by having to go into a busy supermarket to get their Starbucks coffee.
“They’re not as visible,” Artz said. “But it’ll be interesting.”
Lorry VerSteeg, store manager of Taraccino Coffee, 539 Lincoln Way, said he isn’t worried about competition from the new Starbucks stores.
“I feel secure,” VerSteeg said.
He said he feels his customers are loyal and that some of them have said they will even boycott Starbucks for Taraccino.
Having a Starbucks in the area could actually help increase interest in coffee, and that could benefit everyone by providing a variety of coffees to choose from, he said.
VerSteeg said he has seen some of his customers frequenting other coffee shops, but said that is OK.
“I understand it’s the way of the world,” he said.