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This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.
OK: Starbucks Corp (NASDAQ: SBUX) is already in the middle of a serious makeover, with instant oatmeal as its unlikely star. CEO Howard Schultz is back with a vengeance, slashing cannibalistic stores, reducing middle management, training employees on how to make lattes (such an idea!), coming up with new mellower coffee blends to combat the constant complaint of burnt-tasting coffee, and unveiling a breakfast menu meant to save Schultz from his own unhealthy habits.
What more could I ask for? Plenty. To begin with, Starbucks has a serious green image problem that was recently exacerbated by the revelation that store policy mandates a faucet in the "dipping well" be kept running constantly. To combat this, Starbucks could institute recycling programs in each of its stores; more aggressively market the "bring your own cup" programs; become more of a leader in demanding sustainably-harvested ingredients in its products (not just coffee beans but hormone-free milk from grass-fed cows -- I know, pie in the sky -- and organic oats for its famous oatmeal); further lead the charge toward healthy food by reducing the sugar contents of its standard beverages and treats.
The other problem with Starbucks is its prices. The company has set the worldwide bar for coffee beverage pricing, without simultaneously setting the worldwide bar for coffee quality. Its coffee is OK, but not nearly so good as much smaller, independent coffee roasters whose beverages are the same price. Price and quality should be commensurate and it's no secret that your consumers are going to start running out of money when the credit crunch hits Visa and Mastercard. Woo them with a 50-cent across-the-board price cut, make the $1.00 coffee a regular menu item, and you'll keep their loyalty.
There are more problems. Starbucks: your baristas are not known for their personalities. In fact, I get more comments on my posts complaining about rude, dispassionate, or just plain lazy employees at your coffee shops than any other food service establishment. This seems perplexing; servers at many other quick service restaurants are paid just as little, and arguably have far less comfy working conditions. Do a better job hiring and training your employees; take a hard look at store management to see if you've let bad apples spoil the bunch.
And finally (and most importantly), this: bring back the coffee shop. Remember when Starbucks was a "third place" where people could go to hang out in a comfy chair and chat with friends? People still meet at Starbucks for all kinds of reasons, but it's just not comfy. The arm chairs have been replaced by smooth, unfriendly art pieces meant to keep customers cycling through. The regular chairs are flimsy and discourage lingering. The layout of your stores is efficient and unwelcoming. What made you great was your atmosphere. Stop treating your retail outlets like retail outlets, packed to the gills with merchandise of every sort, and start treating them like living rooms again. That's what would get me coming back.
Does Starbucks need a makeover? What would you suggest? Be sure to check out the other makeover posts.
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Reader Comments (Page 13 of 13)
11-23-2008 @ 7:51PM
judy said...
Interesting post. Where I live, the baristas are very friendly and seem to enjoy their work. They joke with me in the drive through and give me a great start to my day. My experience with their coffee has, for the most part, always been positive. A few times I did feel it wasn't prepared properly. Any cafe I have been to (locally) has their good and their bad days. If you bring it to their attention I find most places will be willing to make you another one. I do prefer strong coffee and it seems to be the norm around here to prepare it that way. I would love if the prices came down as both my son and I make frequent trips to Starbucks. I can relate to having to cut back as everyone is in the same boat these days.
11-25-2008 @ 5:13PM
Dorothy said...
I don't know where you are going to Starbucks, but I have NEVER found a lazy, unfriendly or hostile barrista or server there EVER!! I look forward to going in when I can for a break and some pleasantness. I understand the loss of "lounging atmosphere" but I think they could solve that by getting rid of all the gifts, etc. and using the space for more coffee house atmosphere. The prices are too high for me to go often, and when I do, I MISS the ALMOND flavor. I hear all sorts of people mentioning that, including the staff!! What kind of market surveys did you look at to drop that flavor. I cannot imagine it did not sell! LISTEN TO YOUR CUSTOMERS. Glad Schultz is back. DROP THE PRICES!!!!!!!!!!!!!
11-26-2008 @ 3:24PM
Jim said...
ALL dipping wells must be kept running so the water doesn't sit and collect bacteria. This is a HEALTH DEPT. regulation for ALL dipping wells. Can you imagine lazy employees not changing the water and then dipping an ice cream scoop in it? YUKKKK!
11-29-2008 @ 5:19PM
zzjules said...
My local Starbucks (one of 3 in my area) have great and friendly employees......except for ONE that is so annoying I want to roll my window up (since she is practically IN my car while they fix my frappachino, asking personal questions....)
I want to roll the window up around her head and drive off except I think, even if her head popped off, she'd keep talking incessantly and while asking personal questions!
Sadly someone different always answers the order window and the annoying one is the one taking the money and handing me my coffee.
(one of these days I'll be on CNN for a Starbucks drive-off......with the annoying chatterbox stuck in my window) GRRRRRR!
I wish they'd FIRE her. (and if she is there next time I go I am getting her fired)
12-06-2008 @ 8:46PM
sar said...
Its too bad that the writer of this article has no idea what she is talking about. Does she have any idea how many people would get sick if all the Starbucks shut off the running water in their dripping well? It would be disgusting and bacteria would be spread to all of the drinks. They are following the law and she should know that. Also,
all the Starbucks in the area in which I live have friendly baristas, very comfy dining rooms with fireplaces and couches, and milder coffees available at all times. Plus, the bakery goods are tasty and they have a microwave for warming them if you would like. Maybe the author of this article should visit more than a couple of Starbucks before placing a post on the internet.
12-07-2008 @ 3:41AM
Rob said...
This poster lacks a proper understanding of Starbucks. The cost is "high" because the company ensures that all employees have affordable benefits available. Cut coffee prices at the price of their health insurance or maybe the bean growers communities can pay the price. The company does make they have clean water, decent education, and decent wages. How can you argue for organic oats in a "coffee" shop. There is a steroid free milk option. It's called soy. Let's fill up the store with couches and comfortable chairs so that 10 people can enjoy it instead of 25. Finally, I, a Starbucks employee, can name several regular customers (along with their drinks, spouses names, occupations, etc.) who would argue that we are "friendly". After all, that is why they return day after day.