In April, Dirt Cowboy extended its operating hours from 6 p.m. to 10 p.m. and reported a 22.2-percent increase in sales despite an 8.8-percent increase in payroll expenses, Guerra said. Even taking into account the extended hours and an earlier start to the Fall term, however, sales are only 2.2 percent higher than they were during this period last year, he said.
"With the night shift and with students here, we just barely beat last year," Guerra said. "So basically, how much impact did I get? I would say about 20 to 25 percent of my business has been grabbed."
Dirt Cowboy has not changed its prices, products or staff salaries, but the shop has focused on cleanliness and service, Guerra said. Guerra said that Dirt Cowboy plans to eventually offer new products, update its physical appearance and implement an easier-to-read menu.
Other cafes and restaurants have already implemented changes. Lou's Restaurant and Bakery introduced a stronger French roast coffee to prepare for the arrival of the new Starbucks, according to Lou's owner Toby Fried. On South Street, Umpleby's Bakery installed free Wi-Fi to attract customers, according to manager Noah Bond '13.
Local business owners expressed concern that Starbucks, a global chain, may hurt local businesses and change the flavor of a small community like Hanover. Global branding stifles individuality and personal expression, according to Rosey Jekes Cafe owner Kenny Fabrikant.
"Hanover, which has really not been a global brand town it's always been an independently owned town in terms of retail and so forth is now succumbing to the notion of global brands," he said.
Unlike local businesses, Starbucks has little interest in the Hanover community, given that it is primarily accountable to its shareholders rather than the local economy, according to Guerra. In addition to preparing its coffee, tea and baked goods from scratch, Dirt Cowboy pays its staff $12 an hour, a higher rate than the standard wage, according to Guerra. Many of his employees are students earning money to support their college education.
"I want [my staff] to be able to not only pay their bills I want them to be able to get ahead a little bit," Guerra said. "They come here, they make the money and then they go back to college. I take some pride in that, in helping people get there faster."
Guerra said he has also kept prices low in the interest of his customers despite the production costs associated with buying local goods and running an independent business. Whereas a large cup of brewed coffee costs $2.25 at Starbucks, its equivalent at Dirt Cowboy costs $2.10.
Starbucks' arrival increased the difficulty of filling daytime shifts at local shops because a number of employees are college and high school students who cannot work day hours, according to Bond.
"A lot of businesses compete for good employees, and when a place like Starbucks comes in, it can make things difficult for local businesses to hire people," he said.
Students said they choose whether to frequent Starbucks or other local coffee shops for a variety of reasons.
The atmosphere at Starbucks is conducive to studying, according to Matthew Wefer '14 and Sarah Knapp '14, who said that the tables in the coffee shop provide a good place to work and the environment is comfortable. Starbucks is also quieter than a number of shops in town, including Dirt Cowboy, according to Matt Grady Tu'13.
While some students praised Starbucks' subdued environment, others enjoy the liveliness of Dirt Cowboy. Alice Cao '14 said she tends to study at Dirt Cowboy due to the bustling atmosphere.
Because Starbucks is a global chain, its atmosphere is consistent across franchises in different places, according to Knapp, who is a Starbucks Gold Card holder. When she goes to Starbucks at home, the baristas know her by name and remember her favorite drinks, she said.
Other coffee shops and restaurants focus more heavily on creating an environment for people to spend time together, serving a different purpose than work or study-oriented spaces.
"[Lou's is] definitely a local hangout," Fried said. "This is where they meet their friends. This is where they've been coming for years."
Representatives from Starbucks did not respond to requests for comment by press time.
