The value of highlighting Starbucks, since 1971

In a Starbucks TV commercial, I noticed the company notes it was founded in 1971. Here is a logo from their website that highlights 50 years of business:

Starbucks.com

The company’s website highlights their heritage:

Our story begins in 1971 along the cobblestone streets of Seattle’s historic Pike Place Market. It was here where Starbucks opened its first store, offering fresh-roasted coffee beans, tea and spices from around the world for our customers to take home. Our name was inspired by the classic tale, “Moby-Dick,” evoking the seafaring tradition of the early coffee traders.

Ten years later, a young New Yorker named Howard Schultz would walk through these doors and become captivated with Starbucks coffee from his first sip. After joining the company in 1982, a different cobblestone road would lead him to another discovery. It was on a trip to Milan in 1983 that Howard first experienced Italy’s coffeehouses, and he returned to Seattle inspired to bring the warmth and artistry of its coffee culture to Starbucks. By 1987, we swapped our brown aprons for green ones and embarked on our next chapter as a coffeehouse.

Starbucks would soon expand to Chicago and Vancouver, Canada and then on to California, Washington, D.C. and New York. By 1996, we would cross the Pacific to open our first store in Japan, followed by Europe in 1998 and China in 1999. Over the next two decades, we would grow to welcome millions of customers each week and become a part of the fabric of tens of thousands of neighborhoods all around the world. In everything we do, we are always dedicated to Our Mission: to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time

Fifty years is likely a safe point to highlight a founding date as it is a nice round number, a half century. Sure, 49 or 51 years gets at the same idea but it does not have the gravity of 50. Yet, I could imagine two sides to whether promoting this date is helpful.

On one side, fifty years is a long time. Many businesses do not make it this far. Even fewer companies are so long for so many years. Highlighting the date implies permanence, tradition, stability. Starbucks is not just a passing trend; they are good at what they do, they have been around five decades, and hope to be around for many more.

On the other side, Americans tend to like upstarts and novelty. Does fifty years imply old age and lack of innovation? Starbucks is established while other successful companies are offering new models and products. There are Starbucks locations everywhere but once companies like Sears or Woolworths also thrived.

Even as the company celebrates 50 years, companies are not permanent. Perhaps there is a time when fast food in general no longer exists or people can get similar food products at home. Or, Starbucks does something internally that causes issues. Or who knows what. Does it reach 75 years or 100 years, other round milestones worth celebrating? It is hard to know now; Starbucks will keep going until it doesn’t.

Flamin’ Hot Cheetos: from urban corner stores to suburban corporate headquarters back to cities

Where exactly did Flamin’ Hot Cheetos come from? According to Frito-Lay, the impetus for the popular Flamin’ Hot Cheetos came from Northern cities and Plano, Texas:

Flamin’ Hots were created by a team of hotshot snack food professionals starting in 1989, in the corporate offices of Frito-Lay’s headquarters in Plano, Texas. The new product was designed to compete with spicy snacks sold in the inner-city mini-marts of the Midwest. A junior employee with a freshly minted MBA named Lynne Greenfeld got the assignment to develop the brand — she came up with the Flamin’ Hot name and shepherded the line into existence…

Six of the former employees remember inspiration coming from the corner stores of Chicago and Detroit. One of the earliest newspaper articles about the product corroborates that detail: A Frito-Lay spokesperson told the Dallas Morning News in March 1992 that “our sales group in the northern United States asked for them.”…

Over the next few months, Greenfeld went on market tours of small stores in Chicago, Detroit and Houston to get a better feel for what consumers craved. She worked with Frito-Lay’s packaging and product design teams to come up with the right flavor mix and branding for the bags. She went with a chubby devil holding, a Cheeto, Frito or chip on a pitchfork, depending on the bag’s contents, she recalls, a memory independently corroborated by newspaper archives…

“In response, Frito-Lay launched a test market of spicy Lay’s, Cheetos, Fritos and Bakenets in Chicago, Detroit and Houston” beginning in August 1990, the company wrote in a statement.

The article focuses more on the controversy of exactly how Flamin’ Hot Cheetos came about but I think the geography is pretty fascinating. Here is why I think the geography matters:

  1. The impetus were existing products in urban stores. Even as more Americans lived in the suburbs than cities by the 1980s, a large company like Frito-Lay cannot ignore consumers in the city.
  2. The product was developed in the Dallas suburbs. Plano is a notable suburb because of its growth and wealth (and McMansions). But, there are plenty of suburban office parks where ideas are discussed. Who knew the snacking fate of America was decided in a relatively anonymous suburban facility by business professionals? (And how many other products have a similar story?) Across the street is Toyota American Headquarters and then each direction on major roads leads to strip malls, fast food, and highways.
  3. The product was tested in cities and the idea developed in the suburbs took flight. Now, Flamin’ Hot Cheetos are widely available (though it would be interesting to see the sales breakdown by geography).

Modern capitalism was able to span these disparate locations and churn out a product loved by many. From a suburban office park to snack aisles everywhere…

Steps for growing the tiny house movement in 2021

If more Americans are interested in tiny houses, what steps might be needed for them to become viable options for more people?

Photo by James Frid on Pexels.com

Experts say the movement’s main goal this year should be to convince more states and municipalities to legalize tiny houses across the country…

Some leaders in the movement hope to end the narrative that tiny houses are for families…

Tiny houses also need to be seen as viable affordable housing in the future, experts say…

Some of the leaders of the tiny-house movement said they hope to distance themselves from the rise in RVs and camper vans this year

It is interesting to see these four strategies together. Based on this article and previous articles I have seen claiming tiny houses are trending up, I have not seen enough evidence that there is a sizable shift toward tiny houses.

But, perhaps those who claim these four strategies are necessary would say that each point addresses something that holds the tiny house movement back. I would put these four into two broader categories that are worth exploring more.

The first category has to do with important local zoning regulations. Communities are prepared to handle single-family homes and many would be prepared to address multi-family housing. But, tiny houses are out of the ordinary and present unique challenges and opportunities. Should they be allowed on the same lot as an existing home? Do they go with micro-lots? Do they threaten the character of single-family homes? How many could be put on a regular residential plot of land? What are their water and services needs? Are these going to be cheaper or more luxury tiny homes? It would take some time to figure this out in many communities.

The second category involves the next three points. These are marketing and perception issues. Who are tiny houses for? What are they about? What social needs do they serve? The three points above try to answer these questions: tiny houses are for smaller households, they could be affordable housing, but they are not like RVs and camper vans. This puts them into an in-between category: not as permanent as a single-family house but not as mobile as an RV or camper van; cheaper than a typical house but there is still a cost (plus possible land costs); for some people but not others. Perhaps growing more quickly within a particular niche is what would help tiny houses as a whole become more popular.

There could be additional issues to address. If many more Americans wanted to order a tiny house in the next few weeks, could the orders be fulfilled relatively quickly? Do we have sufficient public and private spaces around tiny homes so that people can enjoy living in such a small space?

This is a lot to do. That can be okay; not all products have explosive growth and slow positive change could work out in the long run.

Marketing 101 example: equating pickup trucks to the American way of life

A look at declines in pickup sales for American automakers includes this description of what pickups represent:

“Pickups represent a rugged sense of individualism for many Americans. They are the very definition of America in that they are larger than life like America and can both work and play hard,” said Erich Merkle, U.S. Ford sales analyst.

This is both a concise and bold marketing statement: pickups are the American way of life! The statement ties to multiple big themes that run through American culture: individualism, larger than life, hard work and lots of play. And it is a vehicle that allows the owner to participate in the pervasive driving culture in the United States. And all this just for $35,000 to $50,000 for a new truck!

A truck, like many consumer goods, is not just about functionality but is also a statement about the owners and what they want to be. Buying smartphones, single-family homes, clothing, and more fall into the same process: marketing appeals to our want for what we own to match our personality and/or aspirations. A truck is not just a truck; it is a statement about the driver. It says, “I eat a Prius for lunch” or “I need to do important projects” or “I have the resources to buy a new truck” (among other possible messages).

Then I am reminded that it is just a pickup truck. Vehicles are necessary in many American communities in order to get from Point A to Point B. But, many vehicles may work in order to accomplish regular tasks. If the primary vehicle use is for commuting to work or regular errands such as buying groceries or dropping off and picking up kids, a truck is probably not needed. Some people need trucks for regularly hauling items or for work.

For now, this match between pickups and the American Dream “works.” There are numerous other products that would wish to tie themselves as closely as pickup trucks to the base values of the American Dream. It may not be this way in several decades; perhaps the rugged individualism and freedom will be attached to fleets of electric vehicles that are at everyone’s beck and call. Until something changes, expect to continue to see the marketing pitch that pickups equal the American way of life.

Install a video doorbell to “join the neighborhood” in fear

A recent ad from Ring shows the kind acts neighbors can perform for each other and visitors. The moments range from dropping off misdelivered mail to warning about a fire to capturing footage of someone shoveling a front sidewalk to a resident leaving out snacks for delivery drivers. All of this looks good…And yet: do people install video doorbells because they want to capture good deeds? Or, are they more likely motivated by fear and safety concerns?

I have written about the new possibilities for suburban neighborhoods: homeowners with video doorbells can work as an ever watching surveillance force. And the footage can be shared with police! And no one has to answer the door! But, all of these share motivations: this is about fear, not about neighborliness. Even looking out for others in the neighborhood via the camera is about fighting against crime, disorder, and threats.

On the whole, I would guess video cameras will not increase the number of good needs and neighborliness. American communities need more face-to-face interaction, not monitoring via cameras or online discussions through platforms like NextDoor or messages through yard signs. The commercial is a worthy attempt by Ring to bring a positive message regarding the doorbell camera but hides more of what is really going on.

 

Online courses open opportunities…to study close to home

The spatial dimension of taking online courses provides a surprising finding in a new survey:

While studying online theoretically gives students who are place bound for work or family reasons more geographic flexibility than does in-person study, the Online College Students research shows that ever larger numbers of fully online students are staying close to home.

As seen in the graphic below, 67 percent of respondents said they lived within 50 miles of a campus or service center of the college where they are studying, up from 42 percent just five years ago. Meanwhile, the proportion who said they are studying at least 100 miles from where they live has dropped by more than half, to 15 percent in 2019 from 37 percent in 2014.

The report’s authors offered this analysis: “The growing number of schools offering online programs provides students with more options closer to their home. Local schools have greater visibility among employers and others in the community, which is valuable to students.”

The explanation offered makes some sense: nearby colleges are known in the community. A degree from a local school may mean more than a school from elsewhere.

But, this could lead to some interesting connections:

1. Does this suggest that students have a hard time differentiating from all of the online course options out there? One way to filter all of those options would be to stick to recognizable nearby names.

2. I wonder how the marketing of local institutions matters. Media outlets in the Chicago area are full of advertisements from universities and colleges pushing online programs. Of course, there are national voices advertising in there as well but some of these can be unknown institutions (I’m thinking of Southern New Hampshire University).

3. Could this be linked to decreased geographic mobility among Americans? If Americans like to be rooted in a place, choosing a place to take college classes – whether online or not – may matter.

4. I’m reminded of findings that suggest social media users often make online connections with people they already know offline. In other words, social media users are not always seeking out random connections or unknown people to interact with. Could the same principle apply to colleges?

In the long run, what if the online world ends up leaning local in terms of the connections people make and maintain?

Coldwell Banker’s map of Chicago area locations missing parts of Chicago

A Coldwell Banker insert in the Chicago Tribune included a map and listing of all their Chicago area locations (zoomed in portion below):

ColdwellBankerChicagoMap060219.jpg

It is easy to see all of the suburban locations, particularly in the north and west suburbs. In contrast, check out the city map. From my count, there are seven Chicago Coldwell Banker agencies. Five of these are on the north side. Two are not: one in the West Loop and one in Hyde Park.

But, the Chicago map does not just show disparate locations. It is not an accurate map. The city is oddly shaped. Let me count the ways:

  1. It has an oddly drawn western edge that happens to make the south side much smaller.
  2. The west and south sides do not exist in their full form compared to the north side which looks like it has the biggest area.
  3. The West Loop location should be roughly in the center of the city – it is not. The size of the south side is diminished.
  4. The locations in Chicago have a weird relation to each other. Why are the West Loop and Hyde Park locations so close to each other? According to Google Maps, they are an over 8 mile drive away from each other. Yet, Google Maps suggests the West Loop and Lincoln Park locations are roughly 3 miles apart.

Perhaps this is a function of making a map with labels (the text all has to fit). Or, this may be about marketing: Coldwell Banker has particular clients and they want to highlight their proximity to those potential customers.

Yet, the map severely distorts Chicago. As noted above, the west and south sides do not fully exist. Recent Chicago maps aimed at particular audiences have done this before. This map also hints at the relationship between real estate practices and decades-long discrepancies in where people in the region live. Real estate professionals are not passive bystanders in residential segregation; they were active participants working alongside lenders and governments. Homeownership today is still not completely a free market and is more available to some Americans than others. Coldwell Banker does not have locations in certain places and this likely has ties to race, ethnicity, and class as well as practices and patterns developed over decades.

I am not asking that Coldwell Banker open locations in certain places. I am asking for an accurate map that clearly shows where Coldwell Banker is and where it is not.

(And for those who think I am reading too much into this, my starting position is this: I assume race is a causal factor in American social life until shown otherwise, not vice versa.)

Chicago suburb to sponsor college bowl game

The competition between suburbs can be intense and Elk Grove Village has a new way to stand out: sponsor a college bowl game to be played in the Bahamas.

The village and ESPN announced Tuesday that Elk Grove will be the title sponsor of the Makers Wanted Bahamas Bowl, to be played Dec. 21 in Nassau, Bahamas, using the village’s business marketing tag line. The village is spending $300,000 to sponsor the game, which will air on ESPN. The game had previously been sponsored by Popeyes.

It marks the first time a non-tourist municipality has sponsored a bowl game, the village and ESPN say…

Johnson wanted a way to expand the reach of the village’s “Makers Wanted” campaign, which launched in 2015 to promote the village industrial park — at 6 square miles, the largest contiguous one in the country. The campaign has included a website, billboards, TV and radio commercials, and print ads…

The fee to sponsor the bowl game is part of a $400,000 increase the board approved in its contract with Lombard-based Red Caffeine, the marketing company that developed the Makers Wanted campaign. The other funds will pay for new Elk Grove TV commercials set to air regionally on cable news channels this fall.

It is not uncommon for states to mount such campaigns. For example, see efforts by Texas, Indiana, Florida, and isconsin to draw residents and businesses from Illinois. It is more rare for a single suburb to mount such a campaign on a national scale.

However, conspicuously missing from this article is any evidence that such campaigns work. Can the village conclusively show that the campaign started in 2015 has (1) increased the number of businesses in the community and (2) revenues have increased because of the moves?

This could also be about the status of the suburb. The Chicago area has scores of suburbs and communities often want to stand out. This is why they might seek to change a motto, a logo, or run campaigns to distinguish themselves from others. Such a marketing campaign can make a suburb feel better about itself and local leaders can show they are being proactive regarding growing their community (and growth is good).

It will be very interesting to see whether the football audience helps advance the goals of the suburb and if they are willing to renew their sponsorship for another year past the first. The mayor is claiming the news about the campaign has already helped the suburb (suggesting 95% of the value has already been realized) but the long-term prognosis will take some time to sort out.

Using comic strips to sell the suburbs to millennials

A suburb south of Chicago has a new marketing campaign intended to attract millennial residents:

“Think Homewood” ads, which debuted this month and will run through May, feature three comic strips that focus on affordability, schools, parks, community and creativity. The village, which is about 25 miles south of downtown Chicago, is spending $20,000 on the campaign focused on appealing to millennials…

In those comic panels, two moms stress over registering their kids for schools and park district activities. “I have an alarm set on my phone,” one mom cries when discussing her anxiety about plans to register for a gymnastics class. “If I’m late 30 seconds and miss the window to get a space, I’m so screwed.”

In the other Chicago strip, a dad driving from the grocery store with his wife and toddler shouts, “Frak!” after forgetting avocados for dinner. The couple decide they lack the fortitude to fight traffic and find a parking spot for a return trip to the store. “Goodbye, Taco Night,” an exasperated dad laments.

Those are contrasted with the relatively idyllic “Somewhere in Homewood” strips, where a return to the store for avocados is easy, and the park district has room for another kid in gymnastics even though classes start the next day.

Here is the first strip from ThinkHomewood.com:

https://i2.wp.com/thinkhomewood.com/wp-content/uploads/2018/04/CarCard_Homewood_Strip_1_FINAL-1.jpg

The comic strip seems to hit the right notes regarding one big reason many Americans head for the suburbs: they want a good place to raise a family. Emphasizing safety, lots of green space, good schools, and interesting activities fits into this category.

The strips also highlight a new dimension of suburbs: their growing popularity as cultural and entertainment centers in their own right. While a smaller suburb cannot compete with the restaurant or theater or sports scene in a major city, it can have more cultural amenities. These suburban pockets of fun help move communities past decades-old images of bedroom suburbs where everyone is inside by dinner and nightlife is non-existent. (Of course, most areas in suburbs are relatively quiet places and not every suburb can easily develop a thriving downtown like in Naperville.)

On the downside: many communities have such marketing campaigns. Do they really work? The article goes on to discuss several other Chicago suburbs that have mounted campaigns and the evidence seems thin about whether marketing really attracts people. It is difficult for a smaller suburb to stand out within a region like the Chicago area where there are hundreds of places to live. Would a comic strip be enough to convince people to look in Homewood rather than in dozens of other places?

Finally: do millennials read comic strips like this?