Starbucks is the largest coffeehouse franchise in the world. Founded in 1971, the brand has rapidly expanded in its 54 years of operation, going from a small café in Seattle’s Pike Place Market to dominating the American landscape. It seems like no matter where you go in the United States, you’re likely to see that oh-so familiar green siren logo beckoning you into a Starbucks café. The coffee chain operates about 17,000 locations in the United States as of 2024, with cafés in 52 states and territories. Despite the vast number of Starbucks locations, the company has yet to stake a claim on one U.S. state capital — Montpelier, VT.
Nestled deep in the heart of central Vermont, Montpelier is a vibrant small town with a thriving downtown community. The town features Vermont’s largest urban historic district, home to a number of picturesque government buildings, hole-in-the-wall shops, and local cafés. The town is famous in recent times for its foodie scene, with restaurants covering a wide range of global cuisines, as well as featuring Vermont’s world-famous maple products. For example, the best gyros in Vermont could once be found at The Hippie Chickpea in Montpelier (sadly, the store now appears to be closed).
With its picturesque and highly-walkable food-loving community, one would think that Montpelier would be the perfect location for a Starbucks café. Despite this, the capital city remains without one to this day, leaving many residents and tourists alike wondering why.
Why doesn’t Montpelier have a Starbucks?
Unlike most U.S. state capitals, Montpelier isn’t a large city. In fact, it’s not even a large town, covering an area of just 10.1 square miles and boasting an estimated population of around 8,000 people as of 2023. This makes Montpelier the least populated state capital by a significant margin, and this small population is likely a factor behind the lack of a Starbucks café within the town’s borders.
In addition to the small population, Montpelier has implemented local tax laws that discourage large corporations to set up shop in the town. Any corporation that sets up shop in town is subject to an 8.5 percent tax on any profits above $25,000, which likely isn’t appealing for large chain’s such as Starbucks. This fits in line with Vermont’s small-business-first mentality, as in the Green Mountain State, over 90 percent of all businesses are considered small businesses, and locals tend to prefer spending their hard-earned cash at local-owned shops.
While there aren’t any Starbucks cafés in Montpelier, this doesn’t mean there aren’t any located nearby. There are only around 10 Starbucks locations in the state of Vermont, but there’s a location in the adjacent town of Barre, VT, which is just a short drive away Montpelier. Another Starbucks is located a little further away in Stowe, VT, home of one of New England’s must-visit historic restaurants, the Von Trapp Family Lounge.
