A look at Starbucks’ rise and fall includes some commentary on its wish to become a “third place” in the United States:

This was the vision that former CEO Howard Schultz had long chased: bringing Italian-style coffeehouses to the U.S. and transforming them into a ubiquitous “third place” for Americans. The concept of a third place is simple: If the home is the first place, and work is the second place, a third place would serve as an anchor of community life and social interaction, a spot where anyone could see familiar faces and meet new people in a comfortable, unpretentious setting…
But as the company grew, marketing its locations as a tableau in which to “stay awhile” ultimately meant there was a finite number of people they could sell coffee to per day. As it became clear people were willing to pop in for a $9 handcrafted drink and leave, Starbucks turned away from the original vision, instead hoping to bump profits by enticing a larger number of customers who wanted their coffees to go. The store rolled out mobile ordering, pickup-only store formats with no seating, and an ever-growing rewards program that offered a disappearing carousel of coupons and freebies, all in an effort to expand the number of sales that it could theoretically make in a day…
Starbucks is largely credited with pioneering the world of mobile ordering and building an ecosystem of rewards that keeps the consumer loyal to the brand. “That definitely took off, and then the third place dwindled away during the pandemic,” said Ari Felhandler, a financial analyst who specializes in the food and beverage industry at the firm Morningstar…
And now, Starbucks is staring down the barrel of an increasingly crowded market. Longtime competitors like Dunkin’ Donuts, Peet’s Coffee, and Panera Bread all started their rewards programs after Starbucks launched its app, creating more camps for customers to pledge their loyalty to. There are also the rising coffee newcomers, like San Francisco’s Blue Bottle Coffee and private equity–backed Blank Street Coffee, which also offer a large menu of specialty espresso drinks at their locations alongside their own membership programs and sleek storefronts. Other major corporations including Capital One have also made a bid to become the preferred third place; they boast arching windows at their locations, which combine your local bank with a coffee shop, and have half-off deals on all food and drink for cardholders. (The company has even partnered with California’s Verve Coffee Roasters for its espresso beans.)
Starbucks is all over the place. Its locations offer predictability and standardization. It is McDonaldized coffee and a McDonaldized experience for the early 21st century.
Starbucks’ best claim to being a third place might be that alternatives are lacking for Americans. Should they gather in fast food restaurants? Bars? A range of coffee drinks and food items appeals to a broad set of people. There are many locations. The brand still has some cachet.
What if Americans don’t really want third places? A third place is intended to be a setting for people to talk and interact outside of work and home. People want what Starbucks sells but they often want it for their car trip or to consume elsewhere. Who has time to sit and drink a coffee and talk to another person? Who wants to do this?
Perhaps we should instead hope for places where people want to spend time with their phones. They can take an interesting selfie. They can catch up with social media activity. The seating and the lighting is good for looking at a screen. Their interactions with others are mediated through screens. As people do this, they can drink a coffee. Our smartphones can be our companions on the go.