Starbucks as an indicator of business growth

The presence of a new Starbucks in a neighborhood indicates a burgeoning area attracting wealthier residents and potential startup founders. However, researchers used nimbiism and Magic Johnson's partnership with Starbucks to counter this argument. Nimbiism was leveraged by comparing areas where Starbucks successfully opened with places they were prevented from opening due to objections. Magic Johnson's collaboration with Starbucks to open branches in minority-heavy neighborhoods successfully replicated the business growth effect seen in typical Starbucks locations. Comparatively, Dunkin Donuts did not stimulate local business growth as it lacked the cozy seating ambiance of Starbucks, whereas Cowab Coffee, offering a similar environment, showed positive effects on business creation.