Joe Pinsker on a unique strategy employed by Herb Hyman, the owner of Coffee Bean & Tea Leaf:
He determined his shops’ proximity to Starbucks to be such a boon that he began opening locations close to established Starbucks—a sly reversal of the national chain’s strategy. “We bought a Chinese restaurant right next to one of their stores and converted it, and by God, it was doing $1 million a year right away,” Hyman is quoted as saying in Starbucked.
Rather than run and hide from the big guy, or be terrified of his arrival into town, Coffee Bean started doing the opposite. And they thrived — undoubtedly because it helps to be next to Goliath when you’re trying to get people to pull for David.
(Also interesting data on small boards versus big boards — which makes total sense.)