Why Branded Apps Don't Work
Specialty coffee shops are looking for a solution to compete against Starbucks on mobile ordering. Branded apps are a tempting option, but with a closer look, they fall short.
nick-martin
Jan 30, 2019
The Branded App Temptation
When coffee shop owners see Starbucks crushing it with their mobile app, the natural instinct is: "I need my own app!"
It sounds logical. But here's why it almost never works for independent shops.
The Numbers Don't Lie
Development Costs
A custom mobile app costs $50,000-$150,000 to build properly. And that's just the start - ongoing maintenance, updates, and bug fixes add thousands more each year.
The Download Problem
The average smartphone user downloads zero new apps per month. Getting customers to find, download, and create an account in yet another app is a massive hurdle.
The Usage Problem
Even if customers download your app, they probably won't use it. 77% of users never use an app again after 72 hours.
Why Starbucks Succeeds (And You Can't Copy Them)
Starbucks makes their app work because they have:
- 17,000+ locations ensuring their app is useful almost everywhere
- Billions in marketing to drive downloads
- Engineering teams of hundreds of developers
- Years of iteration and optimization
The Better Alternative
Instead of fighting an uphill battle with a branded app, smart indie shops are joining networks like joe:
- No app for customers to download - they use the joe app that's already on their phone
- Network effects - more shops mean more users, which means more shops
- Shared development costs - world-class technology at a fraction of the price
- Built for coffee - not a restaurant app shoehorned into coffee
The Bottom Line
Don't waste your resources trying to build what Starbucks has. Instead, join a network purpose-built for indie coffee. Email success@joe.coffee to learn more.