Starbucks: The Third Place That’s Boosting Local Business and Creating Insta-Worthy Menu Items

Starbucks is not only known for its innovative menu options, but also for the positive impact it has on the local communities it serves. A recent study by Choi Jinkyong, Jorge Guzman, and Mario Small from Columbia University found that opening a new Starbucks in an area without a coffee shop can lead to the creation of between 1.1 and 3.5 new companies per year over the next seven years.

This phenomenon is attributed to Starbucks serving as a “third place” where people can gather without a specific purpose. According to the authors, Starbucks branches help entrepreneurs form and mobilize networks, contributing to the growth of new businesses in the area.

In addition to its positive impact on local economies, Starbucks also offers creative menu items that have become Instagram-worthy favorites among customers. For example, customers can order a “cake batter Frappuccino” by asking for a vanilla bean crème Frappuccino with a pump of hazelnut syrup and a cake pop blended in. Another popular creation is the “liquid cocaine”, which consists of four shots of espresso with four pumps of white-chocolate syrup served over ice.