Starbucks is Holding WiFi Hostage

Starbucks is in trouble. They just closed 600 stores.  In addition to an over saturation of the market (which the NY Times called “location, location, location”), Starbucks is making the huge mistake of holding its free WiFi service hostage.  This sets it apart of many independent coffee houses, most McDonald’s, all Panera Bread restaurants, and a host of smaller national chains like Krystal Burgers and Schlotsky Deli - in a BAD way … .

For the rapidly increasing number of people who work at least part of the time on a laptop in public places that serve coffee or food, free WiFi is a major incentive for spending more time and ultimately more money.

Personally, when I’m working at my neighborhood coffee shop, I always buy at least a cup of iced tea and a brownie to “pay for” my time there.  It appears that I am not along in this.  Schlotsky’s founder and CEO John Wooley says he estimates that there are an additional 15,000 visits per restaurant annually at a $7 average purchase per visit that are directly related to the free WiFi service.  Panera Bread has had similar results.  As a big fan of Panera Bread, I always buy a cup of soup (usually French Onion) and a cup of lemonade when I’m working there (even when I’m not really that hungry).

While I certainly prefer an independent coffee house to Starbucks, I might be more inclined to spend time at my local Starbucks if they had free WiFi.   Unfortunately, Starbuck’s new idea of “free Internet” is to force you to load a gift card with a minimum of $5 (there must be $5 on it at all times) for 2 hours of service.

Ridiculous. Stingy. Cheap.

And, this behavior is outside of the new business paradigm of sharing and generosity.   Since I’ve launched UpwardAction, my visits to Panera Bread and my local coffee house (and my purchases at these places) have soared.    Starbucks would be getting at least part of these funds (because I love working in various locations) if they didn’t have such a bad business attitude.

What about you?  When working in public places with WiFi that serve food or drinks, do you feel compelled purchase vitals or replenish your cup of iced tea (or coffee - for you coffee drinkers)?

Image source: The Studio Blog

If you enjoyed this post, make sure you subscribe to my RSS feed!