Title: Taos Battles Corporate Giant: The Fiery Clash Over Starbucks' First Drive-Through Cafe
By Andrew Hay
TAOS, New Mexico (Multibagger) - The picturesque mountain town of Taos, New Mexico, known for its rich history and cultural heritage, is embroiled in a modern-day revolt against corporate America. After two arson attacks on a Starbucks (NASDAQ:) construction site, a developer is making another attempt to establish the chain's first drive-through cafe in this community of 6,500 residents.
Locals have nicknamed the potential new coffee shop "Charbucks," reflecting their disdain for the national chain. In response to the attacks, the building contractor from Albuquerque has ramped up security measures, including the installation of video cameras and a security guard stationed in a camouflage trailer.
Just a mile north of the controversial site, patrons of Taos' oldest independent coffee shop, World Cup, are tight-lipped but supportive of the attacks. "We don't know who did it, but we loved it," said Todd Lazar, a holistic healer, echoing the sentiment that Starbucks' presence threatens local culture and economic stability. Starbucks, which operates around 39,500 cafes worldwide, has faced similar criticisms as it expanded into Europe and Asia.
Anti-Starbucks stickers featuring a burning mermaid logo with a skull face, symbolizing Mexico's Day of the Dead, have appeared on local businesses. The first fire in August 2023 left the words "NO" and an expletive spray-painted on the partially burned structure.
Taos' history of resistance dates back to the 1680 Indigenous Pueblo Revolt against Spanish settlers and the 1847 Taos Revolt against U.S. occupation. More recently, locals have opposed developments by tycoons and billionaires, including a ski resort project. Located 7,000 feet above sea level in northern New Mexico's high mountain desert, Taos is celebrated for its UNESCO World Heritage Site Native American settlement, vibrant art scene, and steep ski runs. However, the area also grapples with social inequalities, high property crime rates, and a disconnect between Indigenous, Hispano, and other communities.
Residents like Lazar argue that the influx of remote workers during and after the pandemic has driven demand for national chains, exacerbating housing shortages common in U.S. West resort towns. Despite this, Taos' town council supports the Starbucks store, citing potential employment and tax revenue benefits, according to Christopher Larsen, the town's economic development director.
World Cup owner Andrea Meyer disagrees, stating that jobs are not the issue. "People are showing up saying 'I'd love to work here, I can't afford to live here,'" said Meyer, who runs a cash-only cafe without Wi-Fi to encourage conversation among patrons. With Taos' average home price at $460,000 and around a third of housing units vacant, affordable housing remains a pressing concern.
The fires have already deterred two or three national chains from pursuing projects in Taos, Larsen noted. "The feeling is that Taos doesn't want corporate America," he said.
Starbucks spokesman Sam Jefferies emphasized that employee safety is the company's top priority and that the store will work closely with police once it opens. No injuries have been reported in the fires. Taos currently hosts licensed Starbucks outlets in two supermarkets, and the performance of cafes in nearby towns influenced the decision to open a store in Taos.
Despite the setbacks, developer Clint Jameson, who describes himself as "relentless" and a "development maverick," remains undeterred. The town and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have offered a $30,000 reward for information on the fires. While police believe they know the perpetrators, they lack sufficient evidence to prosecute. ATF spokesman Cody Monday confirmed that the agency continues to follow leads.
At the Coffee Apothecary, a mile south of the central plaza, owner Pablo Flores acknowledges the demand for Starbucks-like drinks but refuses to serve them. While he laments the homogenization brought by national chains, he condemns the arson attacks as symptomatic of the broader political polarization.
"Taos is changing, and if you don't like the way it's changing, do not support that business," said Flores, whose family has lived in Taos for generations. "Don't burn it down, that's not cool."
Analysis for the Everyday Investor:
This story isn't just about a coffee shop; it's about the broader implications of corporate expansion and community resistance. For investors, it highlights the risks and challenges big corporations face when entering small, culturally rich markets. Local resistance can lead to significant financial losses, delays, and increased security costs.
For the average person, this underscores the importance of understanding the local economic and cultural landscape before supporting or opposing such developments. It also brings to light the ongoing issues of affordable housing and social inequality, which are exacerbated by the influx of remote workers and corporate chains. Understanding these dynamics can help individuals make informed decisions about their investments and community involvement.
Remember, investing isn't just about numbers; it's about understanding the human element and the cultural context in which businesses operate.