Imagine this: a Tesla driver makes a pit stop at a Starbucks only to discover he's paying an outrageous price for his coffee. This scenario unfurled recently when a Tesla enthusiast known as 300k Mile Tesla shared his experience on TikTok, illustrating the challenges of recharging both his vehicle and himself near the California-Nevada border.
While recharging his Tesla Model 3 in the small town of Primm—formerly known as State Line—this adventurous driver decided to treat himself to some caffeine. After plugging in, he was met with quite a shock when he attempted to buy his favorite brew.
"The most expensive coffee at any Starbucks," he captioned a video that has since garnered over 61,300 views. It turns out he forked over a staggering $11 for his cup of joe! In his video, he pointed out that such exorbitant prices might be due to the fact that this Starbucks operates as a "private franchise."
But hold on—this detail spurred a lively discussion online. One commenter, Carouselambra1, suggested that the steep prices are justified since there’s no other Starbucks for miles—"the next Starbucks is an hour away if you’re heading north, and a couple of hours if you’re going south."
Yet, interestingly enough, not all viewers were outraged over the high coffee cost; many took issue with the 300k Mile Tesla's misunderstanding regarding Starbucks’ business model. For instance, user Angela Navarro quipped, "Starbucks has no franchise. You just let them rob you lol," highlighting how customers sometimes overlook the nuances of chain operations.
Robyn, another commenter, added clarity by explaining, "It’s a licensed store run by Prim Valley Resorts; they can set their pricing." This distinction opened a can of worms about what it means to operate under a franchise versus a license.
Following the feedback, 300k Mile Tesla undertook some research and shared his findings in a follow-up video. He noted that while he initially described the establishment as a "private franchise" based on online information, further investigation led him to understand that it’s likely a licensed store. Such stores can set their own prices but still need to adhere to the overarching rules laid out by Starbucks. The lack of nearby competitors certainly gives this location a stronghold on the market.
So, what exactly sets franchises apart from licensed stores? According to NerdWallet, franchising involves a comprehensive agreement concerning a business’s entirety, whereas licensing pertains solely to trademarks.
In simpler terms, a franchisee must follow strict operational guidelines set forth by the franchisor, while a licensee enjoys more freedom in day-to-day management but must still respect trademark regulations. Franchises typically provide more support, making them a better fit for service-oriented businesses, whereas licenses are often more suited for product-based companies. Think of it this way: anyone can make a cup of Starbucks coffee if they have the right ingredients, but running a Starbucks outlet requires following a specific set of standards and aesthetics.
As 300k Mile Tesla embarks on more cross-country journeys, it’s very likely he’ll encounter similar situations where he ends up paying premium prices for everyday items. Let’s hope he finds coffees priced under $10 in his future travels!
Motor1 reached out to Starbucks for comment and attempted to contact 300k Mile Tesla through TikTok. If either responds, we will update this article.
What do you think about the pricing at this Starbucks? Have you ever encountered similar surprises while traveling? We’d love to hear your thoughts!
