How Starbucks Chooses Store Locations — 4 Key Steps

Thinking of opening your own café or retail shop? You’ve heard "location is everything"—but how do you actually find the right spot? Most entrepreneurs guess based on gut feel or follow the crowd. Yet global brands like Starbucks don’t leave it to chance. When former Starbucks VP Arthur Rubinfeld grew the chain from 100 to over 4,000 locations worldwide, he relied on a precise, data-backed four-step method to pick every store site. Here’s exactly how the pros do it.

Quick answer: The ideal store location balances high foot traffic (at least 3–5 minutes’ walking distance for coffee shops), visibility from the street, strategic placement near complementary businesses, and careful analysis of both peak-hour customer flow and competitor proximity. Rubinfeld’s method breaks this down into four actionable steps.

Step 1: Scout the Right Area — Measure Foot Traffic Patterns

Start by figuring out where people are actually going—not just where they are. A breakfast spot needs to catch office workers in the morning; a video rental store thrives on the evening commute home. To find your spot, spend time in your target neighborhood counting foot traffic across morning, afternoon, and evening periods. Track how many people enter nearby shops, and note the mix of office workers, students, and families. Do this on both weekdays and weekends—that’s the only way to grasp real traffic distribution.

Also critical: how long it takes people to reach you. The cheaper your product, the less time customers will spend traveling. For example, convenience stores define their main trade area as a 3-minute walk, while coffee shops work within a 5-minute radius. Unless you’re selling high-ticket items like cars, most customers won’t travel more than 7 minutes to get to you.

Step 2: Inspect Potential Spots — Study the Neighborhood

Once you’ve shortlisted a few candidate areas, visit them in person and evaluate from two angles: the business owner’s and the customer’s. What signs indicate strong sales potential? Would you personally stop here while shopping? Beware of assuming that success can be copied next door—unless you have a clear plan to stand out. Prime districts may have hidden corners; secondary areas can surprise with hot spots.

Also watch for nearby competitors. Could an existing business steal your foot traffic? Can you position your store to intercept customers before they reach others? Always consider the customer journey and aim to stay ahead. Being downwind of similar shops often means staying downwind in sales, too.

Step 3: Evaluate the Building — Make the Façade Work for You

View the actual storefront with the same care you’d give a first date—with attention and healthy skepticism. Look at it from a distance, then close up. Imagine your sign on the façade: will it catch the eye? Is it visible to drivers, pedestrians, and passersby on the sidewalk? A great location isn’t just easy to find—it acts as free advertising, showcasing your brand to potential customers every day.

Don’t overlook building quality, either. Even streets with similar designs can vary greatly in appeal. Does the structure support your brand image? Is it as well-maintained as the products you’ll sell? Always assess buildings not just as real estate, but as part of your brand’s public face.

Step 4: Choose Your Neighbors — Benefit from Nearby Businesses

Customers often assume nearby shops sell similar-quality goods. That’s why locating near complementary brands can boost your credibility. Think: clothing stores next to department stores, health food shops near premium supermarkets. The foot traffic drawn by big names can become your foot traffic, too.

Even better, aim for “repeat-visit” neighbors like laundromats, video rental shops, post offices, or supermarkets. People return to these places regularly—and if you’re nearby, they might return to you, too. Such businesses act like boomerangs, bringing potential customers back again and again.

Frequently Asked Questions

What’s the most important factor in choosing a store location?

The most important factor is foot traffic combined with accessibility. For coffee shops, aim for a location within a 5-minute walking distance of your target customers, with at least moderate foot movement throughout the day. Also ensure the location is visible and convenient for spontaneous visits.

How much foot traffic is ideal for a coffee shop?

There’s no absolute number, but the key is consistent, location-appropriate flow. A coffee shop thrives within a 5-minute walking radius, and should be placed where you can observe regular pedestrian movement during morning, afternoon, and evening periods. Count actual foot traffic and nearby shop entries to validate assumptions.

Should I avoid opening next to similar businesses?

Not necessarily—but you must differentiate. Opening too close to a direct competitor without a clear unique selling point can backfire. Instead, analyze whether you can intercept customer traffic first or offer something distinctly better. Avoid being in the “downwind” position of similar shops unless you have a competitive edge.

How do I evaluate a potential building’s suitability?

Look at it from a customer’s perspective: is the signage visible from the street, especially for drivers and pedestrians? Does the building’s façade and condition reflect the brand image you want? Even if the location seems good, poor building quality or lack of visibility can undermine your success.

Why are complementary neighbors beneficial?

Businesses like laundromats, supermarkets, and post offices attract repeat visitors. Being located near them means benefiting from their steady foot traffic. Customers visiting these places may return via your store, especially if it’s conveniently placed along their route or offers something they need afterward.

How do weekend and weekday traffic patterns differ?

They often differ significantly. Weekdays may see more office workers and rush-hour traffic, while weekends bring families and casual shoppers. Analyzing both ensures you understand when your target customers are most likely to visit, helping you optimize hours and staffing.

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