JSU Student Symposium 2021

What Will be the Economic Impact of the New Starbucks in Jacksonville on Calhoun County?


What Will be the Economic Impact of the New Starbucks in Jacksonville on Calhoun County?



Faculty Mentor

Jennifer Green, Center for Economic Development; Benjamin Boozer, Finance, Economics & Accounting


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Submission Type





What happens to the local economy when a new establishment, such as Starbucks, enters the marketplace? When a new business comes to town, everyone rushes to try it out. Like a new kid on the block, Starbucks will likely be the “next big thing” in Jacksonville. This research will tell the full story of the impact that takes place. When new businesses locate in a city, we often are told by economic development officials the number of employees the business will hire and how much the construction will cost. But is that the whole economic impact picture? No. New businesses, especially in more rural areas, create a ripple effect on their local economy. Not only from the direct number of employees they hire, but from their equipment and goods suppliers, etc. The initial effect is what is known as the direct effect. Starbucks has to buy their coffee equipment, furniture, counterspace and shelves, cash registers, paper products, coffee, creamer, sugar, etc. This second ripple is called the indirect effect. You then have the employees of Starbucks who take their paycheck and purchase necessary living items such as pizza from Little Caesar’s, gas at Mapco, groceries at Johnson’s, or an oil change at Express Oil. This third ripple is called the induced effect. This research takes into account the direct effects of Starbucks spending to open its new location in Jacksonville, construction costs, and estimated first year operations costs. This data is entered into IMPLAN to provide the total economic output on Calhoun County. IMPLAN is an economic modeling software providing a validated methodology for producing accurate economic impact analysis. IMPLAN combines a set of extensive databases concerning economic factors, multipliers, and demographic statistics with a highly refined and detailed system of modeling software, including information on over 500 different industries. This analyzation will provide the whole picture of what takes place to the local economy when an entity such as Starbucks locates. It is not just about getting a cup of coffee, rather the effect that cup of coffee will have on Calhoun County as a whole.


student research, economics


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What Will be the Economic Impact of the New Starbucks in Jacksonville on Calhoun County?