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 5 of 13)
10-23-2008 @ 1:12PM
WoodlandWillie said...
The price of the coffee does not matter it just needs to be drinkable. I can get better beans at Costco.
10-23-2008 @ 3:21PM
patsy said...
I really, really like Starbucks. Like a good, craft beer - one cup or mug of the good stuff is all I need. Of course its more expensive - its better quality!
10-23-2008 @ 1:14PM
Chris said...
I totally agree with the statement that starbucks has lost touch with the consumer they were seeking. It used to be they actually sold atmosphere and sofas, that happen to serve coffee. Now its more of a maze through merchandise than Ikea to get a cup of coffee. I can not speak for rest of the country as far as price goes, but I get a medium coffee at starbucks for after tax comes to $1.96. If I were to go to say dunkin donuts, it would cost me $1.88, for 6 cents, I'd say the quality justifies it compared to dunkin, which taste like watered down mess thats served hot.
10-23-2008 @ 1:16PM
singn4u06 said...
So, as a recent ex-Starbucks partner, I have to agree with a lot of you here. I worked for the company almost a year and loved every second of it. Yes, the specialty drinks are expensive. Yes, if you get a triple venti white mocha along with another syrup, add whipped cream, caramel drizzle and who knows what else, your coffee WILL be $5 and a thousand calories. But thats what people like. They choose to spend that money because that's what they make their priority. But Starbucks does have good quality coffee, and if people took the time to look into how their system works when it comes to brewing coffee, I guarentee a lot of mouths would be shut REAL quick. But, I will say the majority of Starbucks i've been to have lost the atmosphere. It used to be THE place to go and study, or have a date with a friend or significant other. But as for quality of the coffee, thats another story. And seriously, do people actually care how much money OTHER people spend, and what they spend it on? Sure, it can be a waste, but hey...its their choice...
10-23-2008 @ 1:18PM
Wally K said...
We had a starbucks here in Plainview Texas, a town of 23,00 people. They did nothing to support the local community schools, events or any other civic venues. Peole will not support a business if they do not become a part of the community. Thats why, in my opinion, they had to close this store.
10-23-2008 @ 1:39PM
fran said...
I can't believe some of the posts here. I have been to Starbucks all over the country and am always amazed at how friendly and knowledgeable the baristas are. As for the prices -- Plain brewed coffee is only slightly more expensive than either Dunkin Donuts or McDonalds. The $5 drinks are specialty espresso or frozen drinks.
If you are not happy with your drink they will make you another one or give you a certificate for a free drink (try that at McDonalds)
They have never "ever" used Styrofoam cups ( only paper) and if you tell them you are staying they will serve your drinks and pastries on china.
The stores (and miraculously the bathrooms) are clean. Most of the larger ones still have comfy couches and chairs (some even fireplaces) and you can sit all day without buying anything!
The quality of their coffee is a matter of personal taste. Don't call a coffee bad because you don't happen to like it. I hate DD and McD's coffee, but I don't say it's bad, it's just not my "cup of t errrrr coffee"!
10-23-2008 @ 1:18PM
Kimberly said...
I am a Starbucks addict. I love the shop by my office! They have my coffee on the counter as soon as I walk in. I cant live without my daily cup, most days two, and am glad they are still doing what they do. All the shops local to me both at home and work, still have the big comfy chairs. My best friend and I meet at one of our local shops once a week..we'd die without them. I look forward to the fall and the Pumpkin Spice too! They are a bit high for a cup of coffee compaired to McDonalds...or so I've been told, I never step out on my beloved Starbucks!
10-23-2008 @ 1:19PM
Larry Story said...
Well for one thing the water running in the dip well is a Health code mandate. The health department requires that the water be running in order to keep the water clean for the utensils. You really, really don't want them to not run the water.
10-23-2008 @ 1:24PM
Pete said...
You have to be MORONS to pay that much for coffee...Go Dunkin'
10-23-2008 @ 1:25PM
Kimberly said...
Everything outside of Starbucks is just brown water.
10-23-2008 @ 1:38PM
Rychelle said...
I 100% agree with this post. I just recently went to starbucks (yesterday 10/22/2008 @ 9-9:30pm) it was located on 67th street on queens blvd, NY (this starbucks was very nice; atmosphere needs work but the employees are very nice. Probably the only two starbucks that are worth my time is this one and the one located in Penn Station. I don't really like coffe (unless mixed with chocolate to hid the taste) but i love their chocolate chip cookie and the java chip frappachino. Plus my friend had employee discount so that 5 dollar drink was 3 dollars. LOL
10-23-2008 @ 1:27PM
Jean texel said...
Starbucks is just plain 'nasty'.And there are just silly people that like to go into places as these to 'look' good or pretend to do their little reading books or studies. The costs are way too high, the different types of coffee do not taste like coffee so why drink it.I was in the once and walked out because of the outrageous cost for so little.When they gave me a sample taste it tasted burned.And that was just plain stuff.
10-23-2008 @ 1:30PM
AD said...
Every time Starbucks is mentioned in the media it always seems to be negative press. First of all the prices at starbucks for a cup of coffee is not ridiculous. A Venit cup of coffee is $1.80 not $3.00 or $5.00. A cup of coffee for under 2 bucks is a pretty good deal. Remember this is a buisness not a charity. Secondly, the issue of the running faucet is left on all day for sanitation purposes. Can you image a barista using a single spoon all day to pour milk and scoop foam for drinks? If that were the case then Starbucks would have to face a million health questions. Keepin the running facet allows for a barista to keep the essential tools needed to make a drink clean. Third, Starbucks is doing its share of making the environment better. The company has recently launced new iced cups and lids that are made with less plastic and are more eco-friendly. Where are the articles praising that? Finally, the Baristas. Until you have worked as a barista at Starbucks you will not understand the day of a barista. People come in with attitudes and all sorts of problems and take them out on the baristas, and thats not a good feeling. How would you feel if someone Bitched you out at work becuase you for got to say No Foam on a drink and it was made with Foam! I am not saying all baristas are perfect but next time you go to a Starbucks and order a drink treat the Baristas in the same manner you want to be treated, if your rude then most likely the rudeness will come right back at you.
10-23-2008 @ 1:31PM
Debbie said...
I am not a coffee drinker, so my complaint is they don't have enough non-coffee beverages (and I don't want a virtual milkshake!) There are some really good flavored Chai's (and some awful ones). Their green tea frapp is pretty good, though. Need some flavored hot holiday Chai's! Bring down the inflated prices and fill the cups up with beverage, not a bunch of foam!
10-23-2008 @ 1:30PM
sherri said...
the coffee is good after you get passed a half a glass of foam. thats why i never buy it such a waste of money !!!!!!!!!!!!!!!!!
10-23-2008 @ 1:39PM
Barista @ SBUX said...
As a fellow employee of Starbucks I agree with this article hands down!!! I've been with the company a little over two years and I've noticed huge changes with the company. Not just with the food but with customer service and retail part of it. I hate that our store doesn't recycle, (especially with how many gallon milk cartons we go through in a day! and thats a lot). Starbucks says that it would cost too much money to have a recycle bin and pick up service come to our store, hence why we don't recycle, at least that's why our store doesn't. And I also despise how much water use we go through in a day. With constantly rinsing and washing and santanizing pur pitches, tongs, cups etc every 30mins, even when there is a high water shortage in Los Angeles!
As for Starbucks not supporting troops, firefighters or lawenforcement, or any armed services is not true. It depends soley on the store manager and distric managers if they want to give discounted coffee to them.
As for the disgrunteled employees, i've noticed there's been a large number of unhappy employees. I'm not sure why that is, i can only speculate that the lack of passion is afflicted by store management and labor. I agree let's get rid of the bad apples! And try to bring back the old coffee shop feel and the third place feeling. Where we knew customers by name and had conversations with them and didn't treat them as some kind of mindless consumer.
As a fellow employee i would love to see more changes and I hope in the near future Howard gets some of these much needed changes into action! More cup discounts for people who bring them in, less sugar in our foods, more varity in our food and drinks geared towards health, more recycling and happier employees. As for everyone else I know I personally appericate and value your returned service but i also understand the many reasons why you've decided to go else where and not come back. I can't say that i blame you guys for leaving in the first place
11-19-2008 @ 11:49AM
brn said...
while i can't stand the taste of starbucks i think you should aim your dipping-well comments to the city/county which requires constant clean water for dipping units.
10-23-2008 @ 1:34PM
McBarista5998 said...
Speaking as a Starbucks partner and a Manager of Mcdonalds, Starbucks has the higher quality products. Granted I too think that some coffee's taste burnt or too strong, but you know what, there is a reason majority of the drips are called BOLD!
If you are a true coffee fanatic then you can appreciate the multiple flavors of the coffees. My advice Go to local Starbucks and ask for a tall (it's not more than $2 in most states) drip, Pike Place roast or their bold, and drink it black. That is a true coffee experience, note the favors and on what taste receptors the coffee hits. You may be surprised to find you like it. If you want to highten certain flavors, ask what flavors pair well with it (chocolate, caramel, and certain berries go good with quite a bit of them).
But for the atmosphere thing, I agree, its too unwelcoming and some Baristas are rude, but name one company that doesn't have a rude employee.
10-23-2008 @ 1:44PM
Joyce Dyrector said...
We used to go to Starbucks all the time, but since they started opening up stores all over the Los Angeles/Hollywood area without restrooms, we stopped going. When you drink coffee you may need to use the bathroom. Peets never opens a store WITHOUT a restroom. They now have our loyalty. When we visited Washington DC, we stopped at a very small Starbucks and noticed they had a restroom. We told them about no restrooms in Los Angeles. They couldn't believe it. Washington DC would never let them open without a restroom. Thanks Los Angeles for your concern for your residents and guests.
10-23-2008 @ 1:50PM
TC said...
The last time I went to starbucks was a few months ago. I liked the atmosphere of the starbucks. THey had comfy chairs and a modern living room feel. I was able to get an iced coffee on special for $2.00. I did not feel like I was in a retail store. What I liked least was the fact the menu was dark and had small writing. I could get a basic idea but the prices and main flavors were hard to tell. I asked if they had a paper menu and the server said no. I had to look at it for awhile before I could make out a special for a $2.00 vanilla ice latte.