WSJ.com – No More Perks: Coffee Shops Pull the Plug on Laptop Users – August 7, 2009 (*may need subscription)

Interesting article. The tradeoff between people sitting and doing nothing for hours vs. attracting customers with the lure of free wi-fi has been ongoing for years now. It’s one of the reasons why Starbucks held out for so long, forcing people who wanted their wi-fi through T-Mobile to pay a ridiculous sum; by doing so, Starbucks hedged against lost revenue from people sitting for hours by taking a cut from T-Mobile.

All of a sudden when free wi-fi became a loss leader for other cafes, diverting customer traffic, Starbucks was forced to capitulate.

As a person who frequents coffee shops quite often (I’ve only been to the Starbucks here in Northampton once, opting for the locally owned Woodstar Cafe instead; remember I’ve always said Starbucks was a crutch to the fact that I never lived near any good, local place), I can easily see the reason why these cafes would want to drive laptop users away. The fact is, the profit margins from running a coffee shop can’t be all that high. Remember, coffee is a commodity and it doesn’t have to be bought from a shop. It’s the other eats that are where profits are more readily realized.

On the one hand, people who are frequenting these shops want the social engagement, but they also want the social isolation by bringing a laptop to work. Anyone who frequents a coffee shop knows that a person with a laptop kills an entire table, since there’s not even a social motive for a “grazer” to ask “mind if I sit here?” The opportunity cost is lost on that customer.

I moreso enjoyed the second half of the article. Figuring out how to be profitable, while still retaining customers who want to use their laptops is a tricky problem. The dichotomy between social engagement and social isolation is a thin one, once you factor in coffee as a commodity. After all, the recessionary frugality mentality seems highly illogical when you argue in favor of “hot water refills” but you want that place to stay open for business so you can have your social isolation.

I believe the saying goes: “You don’t have to home, but you gots to get the hell out of here!” We’ve become so adept at consumerism that despite the recession, we want our cake so we can eat it too. It just can’t be. If I were a shop owner, I wouldn’t be sympathetic to some irrational Yelper like Hannah Moots; you’d have to do some damage control because she’s the type of customer who would affect the Rule of 9s, but you can’t lose sleep over maintaining your business’s existence. It’s simple Maslow Hierarchy-of-Needs.

Me personally, I just make sure to tip about $1 every time I go in.  Since it’s a 30-50% markup on your drink and it puts unrequited coin in their pocket, it shouldn’t give anyone a reason to complain…