How do some businesses just seem to get customers so easily.
 

For the purpose of this post, I am going to talk about coffee shops but it could be a new bar etc.

In my town, there are a lot of coffee shops both independent and chains. A new Costa has opened up and it's always busy. There are at least 5 others on the same street.

Where did these customers come from? Have they defected from another coffee shop?

Are all coffee shop drinkers spur of the moment and don't just go to one?

Do other business notice a drop in revenue when a new coffee shop opens across the street?

Personally I might go to a coffee shop once a year. I find the prices extortionate.

You seem to understimate to power of snobism, SD . . .

"Seem" = keyword.

Well, every time I walk past they have customers in drinking coffee. I presume they pay.

OK, there is a brand new bar opened up. Went myself, didn't like it.
It's always busy and the town it's located in is tiny.

I understand the brick and mortar food + beverage trade very well.

People are creatures of habit, follow a routine, and sadly are also generally lazy. Clients which are loyal to the brand will switch locations which are more convenient to them.

When a brand decides to open up an additional location:
- within 30 days of the new location's actual opening, the local media does their write ups,
- within a week of the grand opening, the brand then heavily promotes the new location on the receipts, handbills, and table top displays, at all the existing locations that are within a distance of X km, and
- spend heavily on print, online and radio advertising targeting only those that live and work within X km of the new location.

Yes people from other coffee shops will temporarily try out an alternate coffee shop, which may cause them to permanently defect if they are satisfied by the new venue. Regarding the brand losing its client at one location, only to be picked up by another location of the same brand, this works in brands favor. When happy clients migrate, over time, the word of mouth that they still count on, also spreads out.

Hope that was enlightening.

I used to try a new restaurant a few times before deciding if I think it’s good. Busy day and not enough staff, alternative cook, shortage of something, and other things happen. If it is a constant thing, I’m gone. But if the dining experience is great, food great and I leave satisfied, it goes at the top of my list.

Couple of years ago a new Chinese restaurant opened near me. Food was excellent, plentiful and reasonably priced. I went maybe six times and then the menu changed as well as the cook. Prices almost doubled, food was salty with thin sauces or overly thick with cornstarch. Cook left and the owner told me the prices at first were for the opening. I told her the prices were crazy and she asked why.

Two egg rolls are usually about $4 and they charged $6 for frozen, not fresh. She tried to justify the price but I said they weren’t using expensive veggies or exotic meats/fish. “Oh you cook??” was her response. Sorry, lady, two small shrimp that were frozen aren’t big bucks.

I tried a new coffee shop across from Dunkin Donuts. I thought the iced coffee was weak and the donut stale. I’ll try again so who knows. But if you’re used to one place, the others can’t compete unless extraordinary. I’ll spend a buck more on iced coffee that tastes better. Others are misers and prefer cheap over quality.

Word of mouth is your best advertisement.

Why the HELL would someone like YOU ever have been involved in that type of business? Aren't you that whale guy with the high IQ?

I always thought something was fishy

I base my choice of coffee shop solely on which is the easiest to steal from. Not just a coffee but the extras as well.

For example, one local to me has an old fashioned coat stand where customers can leave their coats by the door. Although they usually take their purses and phones with them to sit down, you'd be amazed what you can find in the pockets. iPods, watches, dictaphones, paper money, etc etc...