Imagine this: you're on a long road trip, and you pull into a tiny town just to recharge both your electric car and yourself. This is precisely what a recent Tesla owner discovered at the California-Nevada border, sharing his experience on TikTok that has since caught the attention of over 61,000 viewers.
The user, who goes by the handle @300k.mile.tesla, took a break in Primm, a small unincorporated area formerly recognized as State Line, to power up his Tesla Model 3. While waiting for his vehicle to charge, he thought it would be a good idea to stop by a nearby Starbucks for a quick caffeine fix.
To his shock, he found himself paying an astounding $11 for a single cup of coffee. In his video, he humorously captioned it as "the most expensive coffee at any Starbucks," prompting viewers to question how such a price could be justified. The answer, as commenters pointed out, lies in the unique circumstances of the location.
"The next Starbucks is an hour away if you head north and a couple hours if you go south," one commenter noted, suggesting that this scarcity allows the coffee shop to charge premium prices. However, the conversation quickly shifted to a more contentious point: the nature of Starbucks' business model itself.
Many viewers expressed their disbelief not just at the high price tag, but also at the misunderstanding displayed by The 300k Mile Tesla regarding Starbucks operations. One user, Angela Navarro, quipped, "Starbucks has no franchise. You just let them rob you lol," reflecting a mix of amusement and disdain.
Another commenter, Robyn, provided a bit more insight, clarifying that the store in question is actually a licensed outlet operated by Prim Valley Resorts, which gives them the flexibility to set their own pricing.
Curious to clear up the confusion, The 300k Mile Tesla conducted further research and later posted another video explaining that his initial description of the location as a "private franchise" came from information he had encountered online. After receiving feedback, he discovered through a Reddit thread that this particular Starbucks is likely a licensed store. This means the outlet can establish its own prices but still needs to adhere to certain guidelines set by Starbucks. With no other Starbucks nearby, they are in a prime position to control the market.
So, what's the distinction between a franchise and a licensed store? Both types of arrangements operate under a recognized brand and must follow specific rules, but they serve different purposes. As explained by NerdWallet, a franchise agreement encompasses the entire brand and its operations, while a licensing agreement primarily focuses on registered trademarks. In simpler terms, a licensee usually enjoys more operational freedom, whereas a franchisee must comply with the franchisor's regulations, often receiving more support in return.
Typically, franchises thrive in service-based industries, whereas licensing is better suited for product-oriented businesses. For instance, anyone can brew a cup of Starbucks coffee if they have the right ingredients, but starting an actual Starbucks store involves more stringent requirements. Think of it this way: it’s like simply applying a well-known label to a product versus running a fully branded restaurant that must maintain a consistent look and feel.
As The 300k Mile Tesla continues to embark on cross-country adventures, it’s likely he will encounter many more surprising prices on everyday items. Let's hope his future coffee stops are a bit more wallet-friendly than this one!
Motor1 reached out to Starbucks through its press contact and also attempted to connect with The 300k Mile Tesla via TikTok. We will update this story should we receive any responses.
Now, we want to hear from you! What do you think about the pricing strategies of businesses in remote areas? Do you believe consumers should pay a premium for convenience? Share your thoughts in the comments!
