Coffee Shops as an Economic Indicator for Innovation

Coffee Shops as an Economic Indicator for Innovation

Brett King 19/01/2020 5

I spend a lot of time in coffee shops writing these days.

I don’t know why, perhaps many of you have experienced this, but I seem to have a very productive time writing when there is the smell of fresh coffee, the sound of cappuccino machines and the white noise of the coffee crowd to add to the ambience.

Sometimes this environment triggers a burst of creativity that is second to none on the productivity front. My wife tried to fight this tendency for a while arguing that it was all in my mind and I could be just as effective at home sitting quietly in my office, but we’ve since come to an understanding on this matter. Besides – caffeine is a big part of my success at this juncture in my life.

I must not be alone in this, because the so-called “coffee culture” effect has been measured in many economies and can be seen as directly contributing to growth in both economic terms and in relative growth in the retail sector. However, there is an additional element here that I’ve noticed as a leading indicator of an economy’s capability to absorb innovation.

In 2007 in the UK McDonald’s announced that it was going to provide free WiFi in it’s ‘family restaurants’. The US, Australia and many other countries soon followed and by January 2010 most of McDonald’s network in developed economies globally is already wired for WiFi. McDonald’s figured out early that this was an easy win-win. Customers are increasingly dependent on WiFi access as they move around and if you provide this, it becomes a key driver for their decision to visit your store or outlet. Starbucks in the US has also realized that free WiFi is a big draw for customers

Even McDonald's has free WiFi.

Since the launch of BANK 4.0 I’ve been visiting many countries to speak on the future of banking, and I’ve seen a direct correlation between the progress of an economy as regards innovation and integration of free WiFi in the local Starbucks or coffee chains.

Take Australia for example. Since the 1980s Australia has long held an extremely competent ICT industry capability, but this has been somewhat threatened by an ongoing exodus of many of the most talented resources often leaving for overseas opportunities (the so-called “Brain Drain”) due to high taxation and lack of career growth locally. Australia’s net permanent gain in immigration is still strong, but over time this effects the skill mix in innovative industries.

How innovative is Australia though from a global perspective? Research and Development is a dwindling segment in Australia. Long ago the government dismissed or made tax-breaks for R&D so difficult to attain that Australia has lost any competitive positioning it had in this respect. Certainly in respect to industries like software, telecommunications, internet start-ups, mobile platform development, Australia just doesn’t have the capability to compete with many other countries like India, China, Hong Kong, Singapore, Korea, United Kingdom and Northern Europe.

So back to coffee shops. As I was walking around the CBD of Sydney, my goal was to find a coffee shop where I could relax for a few hours and get some blogging, writing, online research and emails done. My primary criterion for this was great coffee (which is not hard to find in Sydney fortunately), a comfortable environment and free WiFi. I tried 5 different coffee shops around Pitt Street and George Street before I finally succumbed to a Starbucks where I could pay for my WiFi instead of having to purchase an annoying, overpriced voucher for 10 minutes access at a time.

Here’s the thing – maybe the reason I can’t get very basic, coffee shop WiFi infrastructure in Australia is because Telstra still largely maintains a monopoly in Australia, maybe it is the fact that coffee shops are concerned about attracting droves of students who don’t drink enough coffee (yes I was given this excuse), or maybe it’s just that as an economy Australia doesn’t get the need for innovation to be about the philosophy of being connected. WiFi is like water these days – it is a basic commodity, or at least it should be. You can’t hope to drive innovation by stifling basic access to a resource that enables connectivity, curation, publication and collaboration.

In 2010, I was in Cairo, where I visited two separate hotels where Internet Connectivity through WiFi and broadband was provided free. The hotels I’ve stayed at in Australia have charged me A$29.00 a day for in-room or WiFi internet access at the hotel, and while in both Melbourne and Sydney I struggled to find coffee shops that had any WiFi capability, let alone free WiFi. In Hong Kong, my mobile provider provides me with unlimited wireless broadband internet access for free with my mobile account and WiFi is readily available wherever I go.

Why in some countries is such a basic ‘fuel’ of the innovation cycle still being used opportunistically by a cartel of organizations trying to eek out a small fortune in overpriced service fees? If leaders of industry and government don’t get this and in your economy today you still can’t get easy access to free WiFi in major cities, I contend that this is a leading indicator of the economy’s ability to absorb or adapt to innovation opportunities. If you still find yourself struggling to get decent WiFi in your city and your in the innovation space…you might consider relocating to an economy who gets the big picture.

About the Author

Brett King is a widely recognised top 5 FinTech influencer. He is a futurist, an Amazon bestselling author, an award winning speaker, hosts a globally recognized radio show (Breaking Banks), is the CEO of Moven, and in his spare time enjoys flying as an IFR pilot, scuba diving, motor racing, gaming (mostly FPS) and Sci-Fi. He advised the Obama administration on the Future of Banking, and has spoken on the future in 50 countries in the last 3 years.

Breaking Banks, #1 show on VoiceAmerica Business, is the leading global fintech podcast with more than 5.5 million listens from 172 countries. Breaking Banks broadcasts, are live every Thursday at 3pm EST in NYC on 1160AM WVNJ Radio and globally via VoiceAmerica’s Business Channel. 

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  • John Wilson

    Fun Fact: I live in Australia. I better move to another country.

  • Louise Roberts

    So lucky to have free wifi wherever I am.

  • Ramear Ismail

    I'm actually having problems right now my wifi turns off every 30 mins

  • Abhishek K

    Wifi is quite decent in North Africa !

  • Vicente Ponce

    Great article

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Brett King

FinTech Expert

Brett King is a futurist, best selling author, award winning speaker and host of a globally recognized radio show. He is also co-founder and CEO of Moven, a New York-based $200m mobile banking startup with over a million users. He is widely regarded as one of the top 5 global influencers in financial services, and his book Augmented was cited by China's President Xi Jinping as recommended reading on artificial intelligence. He advised the Obama administration on the Future of Banking, and has spoken on the future in 50 countries in the last 3 years. Brett focuses on how technology is disrupting business, changing behaviour and influencing society. He has fronted TED conferences, given opening keynotes for Wired, Singularity University’s Exponential Finance, The Economist, SIBOS and many more. He appears as a commentator on CNBC and has appeared regularly on the likes of BBC, ABC, FOX, Bloomberg and more. His radio show, Breaking Banks, began in May 2013. It was the first global show and podcast on FinTech, and has grown to be the most popular with an audience in 140 countries/ 3.6 million listeners.

   

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