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Starbucks ramping up service at Disney World

When it comes to commercial real estate, for many companies there is no square footage more desirable than that inside Disney World's Magic Kingdom.

Just about everyone within picture-taking distance of Cinderella's castle is on vacation, so he or she has money to spend, and since people tend to stay at the park all day, they're essentially a captive audience. 

Recently, Starbucks locations began appearing in various locations around Disneyland. They're the result of a partnership the Seattle-based coffee chain struck with Disney about a year ago.

At the moment, Main Street Bakery is serving Starbucks coffee, but there aren't any standalone Starbucks coffee shops in the Magic Kingdom.

That might change soon.

The April 2012 agreement specifies that Starbucks will open locations in all of Disney's six U.S. theme parks. Each location will be specially designed and built so that it fits in with its surroundings -- surroundings the famously attentive-to-detail Disney has carefully engineered to be pleasant and appealing, of course.

Starbucks and Disney have already worked together on the company's overseas parks, like Disneyland Paris.

Although this contract is probably beneficial for both parties -- after all, people like Starbuck and people like Disney, so what's not to like about Starbucks at Disney? -- we have very little doubt that negotiations weren't fastidiously detailed and pored over.

Both Disney and Starbucks achieved the success they now enjoy in part because they both have a strong vision of their corporate identity, and we doubt either was willing to compromise its strong brand, even for an otherwise good deal.

We encourage our clients to be very thorough, attentive and focused when pursuing contract negotiations. To be flippant or distracted during these important times is to court unwanted consequences.

 

 

Source: Orlando Sentinel, "Starbucks about to start service at Disney," Sara K. Clarke, June 2, 2013

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