What is the Frappuccino Effect?
Starbucks can be said to be the increase in the prices of residential and commercial places in a place or neighborhood, in that area, over time.
I have many observations of my own on this subject. I live in a complex of approximately 750 residences. It has been 3 years since these residences were built and many cafes and many shops were opened and closed. There was no activity in the region. Until a Starbucks opened just around the corner last month. After this was opened, a density started in the region.
In fact, there are very luxurious residences within 2 km of the area I live in, but there was no density. After the opening of this cafe, two different questions came to my mind.
1. Is this place going to be valued or appreciated because Starbucks came?
2. Is Starbucks already here because it thinks this place is valuable?
So starbucks will open in a place that already has no potential? I don't think it will open. So this frappuccino effect is not exactly as it is called.
An international firm works with full professionalism and analyzes well. We call this choosing the right investment location.
Many companies or enterprises go bankrupt because they cannot choose the right location. That's why the analysis should be done well. In other words, if business is done with guesses from the table, or if we open here, we do not say money for money, it will be no different than gambling.
If a business is to be opened, it is necessary to know and analyze some statistics, some sociology, some mathematics.
Why should you know sociology?
You try to sell snails in the Muslim quarter, if you don't know sociology.
If you get a professional consultancy service on location selection and a report is prepared for you, if a 50-60 page report is prepared about where you should open your business, with justifications...
What do you think, don't you think there is not enough ground and you will sink within 3-5 months. While avoiding paying a small amount of money for a report, you lose thousands or even millions of dollars.
So the effect text story...
The guys work professionally and are already opening up to potential places where value increases are foreseen...