So Starbucks (NASDAQ: SBUX) is in a bit of trouble. The stock's down 50% from its all-time high set in 2006, and visionary Howard Schultz has come out of retirement to try to right the ship.And the result is ... drumroll please ... a brand new logo! The iconic green logo is gone in favor of an all-brown logo with a mermaid in the middle.
According to BusinessWeek, "Starbucks plans to use the logo on all its cups for about eight weeks. It will remain in ads and as the logo for Pike Place bags of coffee. The new blend, which will be available in every store, has been crafted for a smoother, cleaner finish than many of the rotating blends Starbucks has traditionally carried week to week."
I could be wrong, but I doubt that Schultz's turnaround effort will succeed or fail because of a logo. And if this is the best Schultz can do, I for one am not impressed. The logo's designed to harken back to the company's roots as a local coffee shop -- but that's not what Starbucks is, and I don't think people are dumb enough to decide Starbucks is cool again because the logo is brown and has a mermaid on it.
For a great example of the bear case on Starbucks, check out this piece from Chuck Jaffe. He named it the "Stupid Investment of the Week."
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Reader Comments (Page 7 of 7)
4-15-2008 @ 2:39PM
Donnarae said...
I have loved Starbucks since they appeared everywhere! However, it appears to me that the NEW logo and/or cups are smaller than they used to be. Just slightly - enough to give Starbucks even more money and the consumer less product. Please, please, tell me this just cannot be true!
4-15-2008 @ 3:01PM
Lisa said...
Why not just make the logo a coffee cup, a tea bag and some spice plants...says it all...simple really.
4-15-2008 @ 3:25PM
cheri said...
Do I drink Starbucks? Yes, if there is nothing else around. But my favorite is Coffee, Bean & Tea. All the best to Starbucks though.
Have a good day all! =-)
4-15-2008 @ 3:26PM
Reau said...
This guy is a genius at "free" advertising. It seems Starbucks is doing something "new" every other day and it is being advertised everywhere - what they really need to do is lower their prices.
4-15-2008 @ 3:41PM
Cearralyn said...
The new logo is ugly...AND disgusting! It sure as heck won't make me want to buy any of Starbuck's overpriced coffee! I don't think their coffee is very good anyway, except for the frozen ones. Those are good, but still, wayyyyy over-priced. Stop depending on gimmicks, Starbucks, and lower your prices. You aren't going to regain any customers until you do! Greedy took you so far...it isn't going to take you any further!
4-15-2008 @ 10:04PM
Bobby G said...
I'm seeing many comments that smack of having been placed by someone affiliated with Starbucks. That said, I don't like the new logo either. I'm sure it is cheaper than the multicolored. Also, I'm getting sick of hearing about Starbucks' woes. It's like picking at an infected wound every time something else is in the news about Starbucks trying to fix itself. Why is it such a big story? Another example of mass hysteria and a pop icon. Stupid people. I went with the flow when Starbucks first came on the scene. I liked the products. But, after about 3 months I realized I was spending way too much money for a morning cup of coffee. I had to re-think my 401K deduction percentage based on a my coffee budget. I left my 401K as it was and I left Starbucks too and didn't miss it. I have noticed it get more and more pricey over the years with lots more extra "stuff". It's like shopping at a pricey gift shop. I could buy a really nice pair of shoes each month for what people spend on coffee. Or, a really nice shirt or pair of jeans; lots of cool stuff. I can make coffee just as well at home and don't have to wait in line. So, again, it's just irritating hearing about Starbucks these days. It's as bad as Britney.
4-16-2008 @ 3:15AM
Shari Schreiber, M.A. said...
Logo, schmogo; it doesn't make damned a bit of difference. Starbuck's decline is due to a classic case of over-expansion. Way too many stores (I have three within walking distance from my home) and they're competing against each other! If poor Schultz had any common sense, he'd have realized how fickle the public is, and how over-supply has hurt demand. You can't put a store on almost every street corner, and expect to thrive. This balloon absolutely had to burst; now it's time to downsize.
4-18-2008 @ 12:20AM
brent said...
couple things...
it is espresso, not expresso
know when to use to, two, too
know what you
this isn't a new logo. liken it to when sbux comes out w/ its holiday cups.
it's not starbucks fault that when you order a quad venti white mocha you pay a premium. last I checked you pay extra when you add things.
comparing maxwell house to starbucks coffee is like comparing a burger king burger to red robin (http://www.redrobin.com/)
can DD employees tell you where their coffee is sourced from, how to pick out the different flavors within the coffee, the difference between swiss water method decaf coffee and chemically processed coffee? Starbucks employees can.
in a time when money is tight isn't it important to consider what you are buying with your dollar besides just the tangible product?
4-18-2008 @ 7:24AM
brent said...
and btw...the logo is NOT a fish. It represents a siren.
4-22-2008 @ 7:29AM
lin said...
Okie I stopped going as well because my $5 caramel macchiato tasted like mud. Quit expensive for not enjoying it. So perhaps the "Barista's " could use some more lessons in quality and Starbucks could stop opening them on every corner of the city they could actually make money.
4-24-2008 @ 4:05PM
Ashram said...
Starbucks' solution to their problems is a new logo?!
Somebody needs to slap their leadership silly, including the ignoramus who thinks this is a good idea.
This is not a solution at all. All they are doing is flailing. The core of the problem is an overabundance of Starbucks stores along with suffering quality with the growing size.
Instead of changing the logo, they need to seriously revise how they operate, including the shuttering of redundant stores. With only a few exceptions, you do not need a Starbucks every couple of street blocks.
They need to streamline their operations and they can start by trimming the fat.