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February 23, 2007
Starbucks chairman warns of "the commoditization of the Starbucks experience"
Starbucks chairman Howard Schultz wrote this to CEO Jim Donald earlier this month. The memo's authenticity has been confirmed by Starbucks.
From: Howard Schultz
Sent: Wednesday, February 14, 2007 10:39 AM Pacific Standard Time
To: Jim Donald
Cc: Anne Saunders; Dave Pace; Dorothy Kim; Gerry Lopez; Jim Alling; Ken Lombard; Martin Coles; Michael Casey; Michelle Gass; Paula Boggs; Sandra Taylor
Subject: The Commoditization of the Starbucks Experience
As you prepare for the FY 08 strategic planning process, I want to share some of my thoughts with you.
Over the past ten years, in order to achieve the growth, development, and scale necessary to go from less than 1,000 stores to 13,000 stores and beyond, we have had to make a series of decisions that, in retrospect, have lead to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand.
Many of these decisions were probably right at the time, and on their own merit would not have created the dilution of the experience; but in this case, the sum is much greater and, unfortunately, much more damaging than the individual pieces. For example, when we went to automatic espresso machines, we solved a major problem in terms of speed of service and efficiency. At the same time, we overlooked the fact that we would remove much of the romance and theatre that was in play with the use of the La Marzocca machines. This specific decision became even more damaging when the height of the machines, which are now in thousands of stores, blocked the visual sight line the customer previously had to watch the drink being made, and for the intimate experience with the barista. This, coupled with the need for fresh roasted coffee in every North America city and every international market, moved us toward the decision and the need for flavor locked packaging. Again, the right decision at the right time, and once again I believe we overlooked the cause and the affect of flavor lock in our stores. We achieved fresh roasted bagged coffee, but at what cost? The loss of aroma -- perhaps the most powerful non-verbal signal we had in our stores; the loss of our people scooping fresh coffee from the bins and grinding it fresh in front of the customer, and once again stripping the store of tradition and our heritage? Then we moved to store design. Clearly we have had to streamline store design to gain efficiencies of scale and to make sure we had the ROI on sales to investment ratios that would satisfy the financial side of our business. However, one of the results has been stores that no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store. Some people even call our stores sterile, cookie cutter, no longer reflecting the passion our partners feel about our coffee. In fact, I am not sure people today even know we are roasting coffee. You certainly can't get the message from being in our stores. The merchandise, more art than science, is far removed from being the merchant that I believe we can be and certainly at a minimum should support the foundation of our coffee heritage. Some stores don't have coffee grinders, French presses from Bodum, or even coffee filters.
Now that I have provided you with a list of some of the underlying issues that I believe we need to solve, let me say at the outset that we have all been part of these decisions. I take full responsibility myself, but we desperately need to look into the mirror and realize it's time to get back to the core and make the changes necessary to evoke the heritage, the tradition, and the passion that we all have for the true Starbucks experience. While the current state of affairs for the most part is self induced, that has lead to competitors of all kinds, small and large coffee companies, fast food operators, and mom and pops, to position themselves in a way that creates awareness, trial and loyalty of people who previously have been Starbucks customers. This must be eradicated.
I have said for 20 years that our success is not an entitlement and now it's proving to be a reality. Let's be smarter about how we are spending our time, money and resources. Let's get back to the core. Push for innovation and do the things necessary to once again differentiate Starbucks from all others. We source and buy the highest quality coffee. We have built the most trusted brand in coffee in the world, and we have an enormous responsibility to both the people who have come before us and the 150,000 partners and their families who are relying on our stewardship.
Finally, I would like to acknowledge all that you do for Starbucks. Without your passion and commitment, we would not be where we are today.
Onward…
February 23, 2007 | Permalink
Comments
how about we DON'T go back to La Marzocca machines. sightlines and communication are nice, but the VAST improvement in speed is worth the sacrifice. besides, there's before and after the espresso bar to communicate with our beloved customers. good enough.
Posted by: helltotheno | Feb 22, 2007 12:58:28 PM
I seriously doubt that this is real.
Posted by: Z-PHANTOM | Feb 22, 2007 1:09:12 PM
As I, the BOSTON STARBUCKS REBEL, I must say that Uncle Howie at least knows what the rebellion is about. Maybe he even reads my posts here which is a comforting thought tha I may have even been the impetus for him sending out this "internal" email. However, as we know, any email sent out can little remain internal for long. Whether or not this email is for real is another question. I must say that this communique has captured my own personal feelings.
1) How many partners actually know how to make a good French press and perhaps even explain the subtle differences between Ethiopia Sidamo and Gazebo Blend?
2) How many partners might be able to pull a perfect shot of espresso or even identify how long a shot is good for?
3) How many partners would be willing to acknowledge a regular customer outside of Starbucks?
In my opinion, less than 10% would be able to answer yes to all three of the above questions. That means we have created a company consisting of 90% of failures. Yes, I said 90% which is far worse than the worst performing inner-city schools. If Starbucks were schools under the "No Child Left Behind," then we would have to close a vast majority of Starbucks for remedial training.
Personally story about when I realized that I could make a great latte. I made a latte following all of the Starbucks standards from pull time 18 seconds, to steaming milk correctly to 160F and incorporating the espresso shot and milk together as soon as it finished. The customer commented, "Let me add some milk because it is usually too bitter for me. Wait, no this latte is perfect, no bitterness just espresso and milk. Wow, thanks you make the best lattes at Starbucks."
The moral of the story is that if we follow the Starbucks standards we can truly "Create an uplifting experience that enriches people's daily lives."
I, myself, strive everyday to ever excel towards greatness in my own small way. This is because I have passion and love what I do. If you don't love it, then you can quit Starbucks. Yes, do us all a favor and as Kelly Clarkson says, "Just walk away."
BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
Posted by: BOSTON STARBUCKS REBEL | Feb 22, 2007 1:12:26 PM
It's not real.
Posted by: J | Feb 22, 2007 1:23:59 PM
interesting read and maybe it is real... maybe it isn't.
This would sorta clarify Howard's "love letter" a few weeks ago.
Anyway... if there is to be a focus on the "core" of Starbucks, it's going to be allot harder than just retro fitting store interiors, focusing on retail and espresso machine usage.
It's the partners currently employed with Starbucks.
There are many new partners who are poorly trained or truly do not understand or follow the company mission statement.
There are older partners who now could be considered "burnt beans". They, feeling betrayed, are not as passionate as they once were.
If everyone could be like BOSTON STARBUCKS REBEL, this company would be a fantastic place to work at and or patronize.
Posted by: 42peratioshift | Feb 22, 2007 1:33:21 PM
nope it isn't real at all.
Posted by: 42peratioshift | Feb 22, 2007 1:34:46 PM
no way that's real.
For example #1, look at this typo
Again, the right decision at the right time, and once again I believe we overlooked the cause and the affect of flavor lock in our stores.
Two, I honestly believe (sadly enough) that Howie has either checked-out and doesn't care, or else has approved all of these changes while being aware of what they would result in long term. He is after all, a businessman. But yeah...not real.
Posted by: DT | Feb 22, 2007 1:36:01 PM
Not authentic, no way no how...no mention of stupid non coffee drinks. Besides would it really be released?
Posted by: | Feb 22, 2007 1:41:06 PM
Even though I have never used a La Marzocco I advocate it. I believe that a Barista is more than someone who steams milk and adds it to, for lack of a better word, processed espresso. Besides, the manual bar's shots taste way better. If in fact this is a genuine e-mail, I'm glad to see that Uncle Howie is finally getting back on track. As many of you have said, "It's just coffee people," you are absolutely right and it's something that all of us need to realize. Starbucks has to realize this as well, and should take steps to further enhance the Starbucks Experience by getting back to basics, and making it all about the wonderful, godly nectar we serve, the drink that this great company was founded on, coffee.
Posted by: Kelowna Starbucks Rebel | Feb 22, 2007 2:10:56 PM
My vote, Not real.
Posted by: Lou Sussler | Feb 22, 2007 2:12:26 PM
Definitely not real. Besides, all the things listed shouldn't be considered the beginning of a downslide. If a Starbucks loses it's magic, it has nothing to do with the espresso machine, or the fact that they happen to offer "non-coffee beverages". It's about the people. Believe it or not, there are still stores out there that feel like a neighborhood coffee shop. The tone is set by the partners.
Posted by: jsd | Feb 22, 2007 2:22:06 PM
I seriously doubt it's real.
Posted by: ExSFBarista | Feb 22, 2007 4:05:10 PM
The real letter would have been ghost-written by someone who knew how to use English.
Posted by: Supposed Eric | Feb 22, 2007 4:21:49 PM
Seeing as how the use of La Marzocco (not La Marzocca, as in the letter) espresso machines was Howard's choice, I doubt that he'd make that typo.
The FlavorLock valve is decades old, and Starbucks attributes it to the growth of the company. Howard says himself that Starbucks owes much of their success to the valve.
What this is, unfortunately, is a rehashing of the gripes of every barista who takes his or her job far too seriously. The biggest thing for Howard right now is without a doubt Starbucks International, followed closely by Starbucks Entertainment. Those are the two arguments for brand homogenization, and two of his passions. It's not brand homogenization if Howard doesn't say so.
I think that Jim should use his head and stop posting things on Starbucks Gossip that are patently fake. It's just immature rabble-rousing.
Posted by: | Feb 22, 2007 4:27:51 PM
Whether it is real or not, I absolutely agree with a majority of the points in the letter. I work at a very busy store, and I must say that it does not have a coffee house feel to it whatsoever, it feels like a fast food restaraunt, too much like a business, and not as much a place to sit down, relax, and enjoy myself. If I want to go to an authentic coffee house, for a real, homey coffee atmosphere, I never go to a Starbucks. Almost all of my partners, and I include myself in this one, don't know hardly anything about the different coffees we provide. We couldn't tell you any difference between any of the coffees except that one tastes stronger or weaker than the others. We probably know zero about the roasting process...its just sad to me.
Starbucks needs to go back to its roots, recapture the coffee house atmosphere. Right now I don't think there is a single one that has it.
Posted by: JasonWabbit | Feb 22, 2007 4:37:04 PM
I would like to state that this letter in my opinion is psuedo Howard Schultz literature. Although written in the style of him, especially if you read everything he has written and spoken, there are many textual errors that indicate it was not written directly by him in his own hand.
However, I believe that if we treated like the Gospel we could say it was written by somebody in the Company and are aware of the primary themes of Uncle Howie. Just like the Four Gospels were written by the community of believers, so this too was written by a close associate(s) of Uncle Howie. Obviously, my own writing style is singular and discernible. Therefore, it would be most difficult for somebody to replicate my grammar, syntax, sentence structure, rhetoric, etc.
Again, I would like reiterate that many of the points in this aporchypal letter do go to the heart about how Starbucks has gone dreadfully wrong and aweary in its mission and purpose.
On a lighter side, I would like to state that my timing on trying to produce a Starbucks beverage, made to standard, is being cut down to 30 seconds. Yes, my managers want me to be able to produce a beverage, made to standard, in under 30 seconds. Yes, I am a little north of that figure right now but I think with a little practice and efficiency refinement I shall be able to meet that goal.
BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
Posted by: BOSTON STARBUCKS REBEL | Feb 22, 2007 4:44:15 PM
Boston Starbucks Rebel -
I understand your statement: "1) How many partners actually know how to make a good French press and perhaps even explain the subtle differences between Ethiopia Sidamo and Gazebo Blend?".
I have to admit that I can't explain the differences - I've never had Gazebo Blend. It has not been offered since I joined the ranks last summer.
I can, however, make a good french press - that's what I've been using for coffee at home since 1994, when I saw that was the only way to get a cup of coffee in a restaurant in Glasgow, Scotland. (And liked what I got!)
While I wasn't a wizard on the La Marzocco, I was getting pretty good with it when I transferred to a newly-opened store. Except for decaf. I only got the right tamp and pull about 30% of the time with decaf, but was hitting 80-90% with regular espresso. (I had awesome learning coaches!)
And I do have conversations with customers outside of the store. I often bump into them at supermarkets, bookstores, conventions, and sometimes just out on the street. We recognize each other, and have apparently connected, because the conversations will continue the next day (or week) at the store.
Again, I love what I do, and most of the folks I work with (even the one or two I don't love, I like.) I don't _have_ to work for Starbucks - I _want_ to work for Starbucks.
Yes, the company isn't the same as it was a decade ago when I became a customer, but not much is. I take it upon myself to make Starbucks a great place to be, as a partner AND as a customer, and to try and spread this attitude to everyone I encounter.
I don't hit all of the Gold Standard points, but I'm working on them!
Posted by: Sbuxnewbie | Feb 22, 2007 4:48:42 PM
I don't buy it. Doesn't sound like Howard.
It lost me at Marzocca.
Posted by: Lilith | Feb 22, 2007 5:17:16 PM
The difference between Ethiopia Sidamo and Gazebo Blend is that Ethiopia Sidamo is a single-origin coffee and Gazebo Blend is BLEND of East African coffees. There is a noticeable difference in the flavor especially if you pair Gazebo Blend with berry items such as blueberries and cranberries while Ethiopia Sidamo goes very well with lemon loaf.
Do not forget and remember that the passion that baristas had for coffee at Starbucks was what compelled Howard Schultz to leave New York and throw his lot in that small coffee shop in Pike Place so many years ago.
Posted by: BOSTON STARBUCKS REBEL | Feb 22, 2007 5:48:34 PM
zero chance this is real... especially given the gramatical errors such as affect instead of effect and the fact that despite it having several CC: it is addressed to one person and at the end it says something about thank you all... if this persons comments had merit they could stand on their own and not need "howies" signature
Posted by: Ben | Feb 22, 2007 5:51:15 PM
zero chance this is real... especially given the gramatical errors such as affect instead of effect and the fact that despite it having several CC: it is addressed to one person and at the end it says something about thank you all... if this persons comments had merit they could stand on their own and not need "howies" signature
Posted by: Ben | Feb 22, 2007 5:51:18 PM
My bad... I mis-read
"Finally, I would like to acknowledge all that you do for Starbucks. Without your passion and commitment, we would not be where we are today."
but its not like Jim Donald has been there for very long and brought starbucks to where they are today.... sounds like an ending for a letter to partners
Posted by: Ben | Feb 22, 2007 5:53:21 PM
If you recall, the Starbucks MWS does not have spell/grammar check so its not surprising that words like that popup. I usually make a point of correcting the store communications for those type of mistakes. I guess having advanced college degrees really do come in handy for something, even if it is to correct management who are unable to speak English well.
Posted by: BOSTON STARBUCKS REBEL | Feb 22, 2007 6:00:45 PM
OK, right off the bat my vote is that it's fake as well... I do, like others, agree with alot of what's said. I also want to state, however, that there are still some very great stores out there. Boston Starbucks Rebel - You would appreciate my old store in Mystic, CT. When I worked there (I can't vouch for it now, but still...) we ALL knew how to pull and time perfect shots, make delicious french presses, and discuss the finer flavors of our coffees. We had a real community environment where we knew our customers by name and drink order and -gasp - actually hung out with some of them outside of the store (in a small town with a few bars, what more can you expect? hah). Anyhow, I loved this environment and I truly believe that stores can be this way if the partners within them want it to be... The store I am at now, though, is definitely one of those cold get-in, get-out kind of stores that I think more and more are turning in to. It's unfortunate, but I think that if you as a barista want your store to be more welcoming and true to our core values, you can help inspire your store to become that.
~ J
Posted by: J | Feb 22, 2007 6:06:06 PM
J,
Yes, I shall agree with you on the point that I find many Starbucks in CT are still very close to the core values of Starbucks. And at my store, I definetely make a point of getting to know my customers. I really cannot help it because I live in the same area and so therefore if somethind does go wrong at my Starbucks, believe me I hear all about it! The management on the otherhand seems not to care because they do not have to interact with the customers outside of the store which makes their life alot easier I suppose. I fully participate in the community in which I live and get involved, one of the ways of being I might add.
BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
Posted by: BOSTON STARBUCKS REBEL | Feb 22, 2007 6:19:21 PM
FWIW, the person who sent it to me says: "I don't have any reason to think it's not real." This source has also told me how he/she obtained it. Again, I personally can't vouch for its authenticity, but believe the points made in the letter are worth discussing.
Posted by: STARBUCKSGOSSIP webmaster | Feb 22, 2007 6:21:32 PM
Wouldn't you think that Chairman Howard would tell his associates something this big to their face over the phone and not in an email?
Posted by: IslandIllusions | Feb 22, 2007 6:25:14 PM
I don't think it's real. Why waste all that money and time on something just to go Opps..not gonna happen anymore let's go back and redo it all to the old way. I'm sure they research this stuff before they put it into every single store. So my vote is fake.
Posted by: pepperminthotchocolategirl | Feb 22, 2007 6:35:01 PM
As a former long-time Starbucks marketer, I have SERIOUS doubts, like others have expressed, about the authenticity of this email. My thin-slice reaction tells me it’s a 100% FAKE. Why?
First, the FY08 strategic planning process started in 2006, not 2007. Starbucks begins its 2008 financial year in October of 2007. Ain’t no way the company is just now starting the planning process for FY08.
Second, Howard would NEVER single-out Flavorlock packaging as being a reason for the commoditization of the Starbucks experience. Instead, he would focus on the elimination of scooping whole bean coffees from bins. Flavorlock package made it possible for the company to ship roasted coffee all over the world while keeping it fresh. Without Flavorlock silver bullet 5 lb. bags, Starbucks today would be the size of In-N-Out Burger.
Third, Howard would take full responsibility upfront for the decision to phase out La Marzocco espresso machines in favor of the Verisimo machines. That was his call ultimately. He would acknowledge that upfront. Also, since this is an internal email, he would use the specific Verisimo name and not the generic “automated espresso machines” name.
Fourth, this email is devoid of any aspirtational tone. Howard, no matter how critical he is, will always exude an aspirational tone.
Fifth, no where in this email is the mention of the “Third Place” experience. Howard would NEVER send an email harping on the commoditization of the Starbucks experience without referencing the “Third Place” customer experience. NEVER.
Sixth, when this email touches upon the encroaching competition of other coffee places and QSRs, Howard would NEVER use strong language like, “This must be eradicated.” As a company, Starbucks is extremely careful to not use such language when talking about competitors. Starbucks learned from the anti-trust proceedings with Microsoft that internal emails using strong language that mentions killing/thrashing competitors could be used against them. Trust me, Howard would NEVER use such strong language about blunting competition.
I could go on but … I won’t.
**** A NOTE TO Starbucks Gossip Webmaster Jim Romenesko … I think you used very poor judgment in posting this fake letter. You have enough journalistic smarts to smell a fake. Shame on you. Someone just pulled a Howard Stern Baba Booey on ya. ****
Posted by: johnmoore (from Brand Autopsy) | Feb 22, 2007 6:41:36 PM
"...but believe the points made in the letter are worth discussing."
Why discuss a potential lie and flasehood clearly sent out to flame the fires of the best coffee roast?
Bullshit is bullshit. Let's call it what it clearly is and not waste our time "discussing".
Posted by: JimmyChangInNYC | Feb 22, 2007 7:59:45 PM
I agree. Take down this garbage. Have some integrity.
Posted by: J | Feb 22, 2007 8:12:49 PM
BSR...I have never heard anyone talk about themselves the way you do. You are possibly the most egotistical human being on the planet. If you are so great, why are you working as a shift at a Starbucks? Seriously. Give it a rest. No one is as good as you think you are. If I worked for you I would slit my wrists.
Posted by: | Feb 22, 2007 9:03:10 PM
Fake.
Many good points have been made above, but I'd like to contribute one or two.
Adding on to JOHNMOORE's post, I'd like to point out that there's also no specific action to take. Howie wouldn't send out an email that says, "Oh, sh*t, we screwed up," without saying, "Here's how we save our asses." Simply saying we need to get back to the core isn't how Howard would end this.
Also, BOSTON STARBUCKS REBEL, I somehow doubt that Howard writes his emails on the MWS, at least not initially. I assume he has access to the email feature of the company's network via a more traditional personal computer. If he doesn't that's silly. Anybody have confirmation of executives in the company being able to access such features? DMs? Regional folks?
I think it's fine for this to be posted for discussion. After all, the name of the website is Starbucks Gossip. Gossip, people. Look it up. Yes, it's flame bait, but that's sort of the idea sometimes...
Cheers!
Posted by: NewShift | Feb 22, 2007 9:07:50 PM
Howard cares about money. The end.
Posted by: LG | Feb 22, 2007 9:31:53 PM
No, it's not real.
No, the executives themselves do not use their time to read this site. BSR, sorry to break it to you, but they are not reading your sanctimonious posts.
People at corporate, much like any other company, use outlook which certainly does have spell check.
Posted by: seattle | Feb 22, 2007 9:37:27 PM
Howard dosn't like blue paint in stores...ever noticed that there are virtually no totaly blue walls in starbucks stores.
And the three new starbucks store designs are really cool. Country of origin is a trip back to the roots of the coffee producing countries, classico is super cool with the victorian patterns on the chairs and that super cool lounger and di mode with its modular furniture that can be moved around to fit your move. (granted the plastic chairs are kinda cheezy)
starbucks oh how i love the
Posted by: Andrew | Feb 22, 2007 10:23:07 PM
First, for all of you who can't get it right, its BOSTON STARBUCKS RBEEL. Second, to the anonymous poster, well if you do decide to slit your wrists, make sure not to get your blood into any of the drinks. Make sure to slit your wrists on your own time, thanks. And oh yeah, get your shifts covered in case you really are trying to kill yourself. Nobody will be missing you, Actually, most of the baristas do enjoy working with me and look forward to because I am very fun to work with. In case your Latin was a little rusty, "primus inter pares" means first among equals. Yes, I understand that I CANNOT do it alone and I need the help of all the partners to do it.
Maybe, Uncle Howie was sending out the email on his Blackberry or something. Maybe, he was sending it as an text message to other executives. From the times I have met with Uncle Howie, I will say he seems kind of spacey, like he has had too much coffee and wants to hide it but wants to hide and secretly wants more or else he will turn into a pumpkin, a pumpkin spice latte.
Finally, its not surprising that Mr. Romenesko might post a possible missive not actually written by Howard Schultz. Sometimes, people seem to miss the point that says not possibly written by Howard Schultz at the top of the page. There is a disclaimer people. However, we do live in the age when false documents can be mistaken for true ones and before you know it dictators are being hanged and militant insurgents are crying like school girls because they have dogs all over them with wires coming out of their arms.
Finally, the comment about the "automated espresso machines" also refers to the Verismo and Magistrales. Ever hear of those wonderful Magistrales?
Corporate does read this website because if you remember back, they did have one of their communication specialists people respond to the comments being made about the change in price in frappuccinos(r) blended beverages and junk.
BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
Posted by: BOSTON STARBUCKS REBEL | Feb 22, 2007 10:27:09 PM
Going off topic based on Andrew's post, but the "country of origin" store layout is really cool. A weekday location I go to changed their layout from this past weekend, and it's pretty nifty.
Oh, and BSR, it's "Verisimo," not "Verismo". ^ I'll just look at that as you being exhausted from working so hard on your shifts this week. ;) Wouldn't want anyone to think someone's faking your posts, as well as Howard's emails.
Posted by: HopkinsBella | Feb 23, 2007 6:37:53 AM
Thanks Hopkinsbella for correcting me onn that point on how to spell Verisimo. Thankfully, it was not in Akeelah and the Bee or else I would've been kicked out. Yes, I have not had a single day off in about fourteen (14) days so I am quite tired.
I believe that getting names on cups is a good way to avoid the commoditization of the Starbucks Experience because it allows partners to connect with the customers on a personal latte and not reducing them to a simple beverage order. I heard there was a fight on the floor this morning at one of the Starbucks about getting names on cups. Good news travels fast you know here in Boston. HAHAHAHAHA! Telephone, telegram, tell a barista!
BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
Posted by: BOSTON STARBUCKS REBEL | Feb 23, 2007 7:18:15 AM
"its BOSTON STARBUCKS RBEEL"
Ok?
Posted by: | Feb 23, 2007 10:18:31 AM
Wall Street Journal reports this as real, confirmed by a SBUX spokesperson.
http://online.wsj.com/article/SB117225247561617457.html?mod=home_whats_news_us
Posted by: DS | Feb 23, 2007 10:50:48 AM
This just in ... the Wall Street Journal has verified the authenticity of this email from Howard Schultz. A Starbucks spokeswoman comfirmed the email is legit.
I'm shocked. And Jim Romenesko, I apologize for calling you out for publishing this email since it seems to be verified as 100% real. Oh my. Oh, oh my ...
Posted by: johnmoore (from Brand Autopsy) | Feb 23, 2007 10:52:50 AM
Wow. I was quite sure that the letter was a fake, but if the WSJ got a confirmation, then I, as well as many others, owe the webmaster here an apology.
Sorry to have doubted you, Jim.
Posted by: exSFBarista | Feb 23, 2007 11:00:40 AM
I'd eat my hat, but I kind of like it. All I can still say is "yikes" about the email. It didn't um, inspire believability when I read it, and learning that it's authentic doesn't exactly inspire confidence, either. Does the right hand know what the left hand is doing? Or does it know all too well?
Posted by: HopkinsBella | Feb 23, 2007 11:32:03 AM
I never personally doubted that it was for real.
BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
Posted by: BOSTON STARBUCKS REBEL | Feb 23, 2007 1:17:31 PM
I have been visiting the Washington D.C. Dupont Circle stores over the last few months. The stores are so dirty that are actually unappetizing. Sterile would be a welcome improvement.
Posted by: Donna | Feb 23, 2007 1:42:39 PM
BSR wrote:
"Second, to the anonymous poster, well if you do decide to slit your wrists, make sure not to get your blood into any of the drinks. Make sure to slit your wrists on your own time, thanks. And oh yeah, get your shifts covered in case you really are trying to kill yourself. Nobody will be missing you."
wow. so, love your customers, huh, but hate your coworkers? since your head is stuck far up the rear end of whatever corporate manual you read every day, you should know that creating the Third Place also involves your coworkers, bucko.
"Actually, most of the baristas do enjoy working with me and look forward to because I am very fun to work with."
coulda fooled me. if you're even a 10th as sanctimonious and self-righteous in real life as you come off on these boards, i'd be transferring out of your store pronto.
anyway, the newer store designs here in philly have lots of blue. blue tile on the back splash and lots of dark wood. it looks great. my store, on the other hand, looks very 1999. sigh.
Posted by: CuteBarista! | Feb 23, 2007 4:35:19 PM
BOSTON STARBUCKS REBEL
BOSTON STARBUCKS REBEL
BOSTON STARBUCKS REBEL
I wonder how many times a customer has to repeat their order. Tall coffee. Tall coffee. Tall coffee. I would rather have 1 excellent barista who knows all operational standards than having 3 mindless, apathetic baristas who could care less about giving a customer a stale cup of coffee.
Letting people become partners at Starbucks is like "social promotion" where they keep on pushing students along until they are old enough to graduate but not functional citizens. We have baristas on the floor who know little if anything about a great cup of coffee. This is probably the most disturbing situation and Howard Schultz does have every right to be deeply concerned about Starbucks.
BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
BTW: The Starbucks in Philadelphia always made me very sick whenever I had a drink there. Maybe, it was just the dirty air.
Posted by: BOSTON STARBUCKS REBEL | Feb 23, 2007 4:57:08 PM
I don't think it's so outlandish to think that Howard would make a spelling or grammar mistake...my DM has spellcheck on his laptop and most of his e-mails confirm that he is at best a semi-literate toad. If Howard sent it without a proper proofread, he could easily miss some mistakes.
Posted by: sbuxmanager | Feb 23, 2007 7:09:39 PM
Thank you Mr. Schultz.
For the last three years I have had the honor to be a partner for what I consider one of the greatest companies in the world.
But as I moved to a new market to start college, I realized that the store around me lacked to represent the true mission and vision Starbucks was founded on and that Mr Schultz emphasised in his book "Pour Your Heart Into It?"
When I began, my mentors reminded me that my duty wasn't to sell as many ceramic mugs and pastries as possible, but that my main duty was to provide every person who walked in my store a "third place". This meant going an extra mile to make their day better by helping them finding the perfect cup of coffee, even if we had to do a french press of every multi region blend or single origin coffee starbucks had to offer, making their favorite specialty drink, or simply talking with them.
I hope that this his memo has been truly noted by the rest of the company.
Posted by: berghie88 | Feb 23, 2007 7:14:45 PM
I want Starbucks to stop playing around with politically correct movies and books and focus on the coffee. Akila and the bee? Give me a break! How does this movie make people buy Starbucks coffee?
Otherwise I find myself enjoying Pete's more.
Another suggestion, I am a big drip coffee drinker, and the machines for making Pete's drip coffee (at least here in Redmond) are better than the regular drip machines in Starbucks. But the machines are large, require special plumping, and take up a lot of counter space.
Posted by: StarbucksInvestor | Feb 23, 2007 7:24:12 PM
The now confirmed memo from Howard Schultz couldn't be more true, to the point, and necessary.
As the company has expanded, the mission has become watered down.
Stores have lost their personality.
Baristas have lost their skill.
This has happened so much that NPR has created a parody of the Barista as a measure of the Economy called the "Bad Barista Index." I wish it weren't true.
As a lover of coffee, I don't care if the Barista knows my name, writes everything down on the cup correctly, or corrects the call on the latte from non-fat to skim milk... I want them to pull a good shot of espresso, and as Starbuck's has expanded, the experience has become more about the fashion of being at Starbucks rather than about the coffee. It was the coffee that got people there, and it is the coffee that will keep people there.
Here is the link to the NPR audio. Don't get upset if you are a barista.
http://www.npr.org/templates/story/story.php?storyId=5073210
I post the link as much in the spirit of NPR's parody as I do in the example that it shows. Starbucks coffee has become more about the branding of the name and image and less about the coffee. That is a fact. Howard proved it with the memo.
Sadly, as this commidity has become more and more of a market force, independent coffee shops, trying to replicate the success of Starbucks, have not been able to succeed in mid-level markets. Starbuck's has meant their death sentence. For coffee drinkers, it means that we have fewer quality choices.
When I think that Dunkin Donuts and McDonald's are becoming Starbuck's biggest threats to coffee consumers, I know that the coffee lover will be the one to lose.
At that point, Starbucks may have alreay lost.
Posted by: wsj_reader - sbux_drinker | Feb 23, 2007 9:21:41 PM
i also felt the death wave coming after 3 years ...i have found another job that...dosent disrespect me....
as i stated in aresponse post a day 1/2 ago on the t shirt topic...I expalined how they need to be more concerned about how the are DOING AWAY WITH OUR HOURS TO DO AWAY WITH OUR HEALTH CARE...and how we are expected to drive 15 to 30 plus miles to solicit work at other stores since we only get 12- 15 hours and have OPEN AVAILBILITY?????
ON OUR DAILY COVERAGE SHEETS....IT SAYS...
"SELL THOSE SANDWICHES TO EARN LABOR AND HOURS FOR YOU AND YOUR PARTNERS??""
What????? this is a coffee shop...how about staffing correctly instead of strong arming the managers into punishing us and our income and our employment because they have to watch labor...we are all short staffed!!! we can use a 5 man floor instead of a 3 man yes even in the "slow" part of the day we can clean so we stop failing our Eco Sure audit...I feel bad for the managers who are being bullied into creating such horrible work environment...we are upset because we loved the company...we are being tyold that we are not good enough people or poartners to work for the sake of work and being treated like adults who want to work aand get hours and be staffed correctly and not feel like we have to be running people in and in 3 minutes...or any way ...we will geet punished???what if the partner on register is explaing a new pastry or new drink to a customer...uh uh being legendary and sincer? that took 1 minutye and half before the customer ordered...now the idiot snapshot person is gonna mark us down because from the time they started to stand in line till they got there drink ...it was 4 1/2 minutes....no.
Howard you can not have it both ways...I can tell you more of the older partners are leaving here a type of execdous...because of the stressful and unreaslistic micro mangement demands you all make on us ...you want 100 % at work...we used to give it to you...but when you all don't give us 100% in at least keeping us at 240 hours....so we loose our insurance we will have to sadly leave...
please be forthright and explain that the awesome generosity of insurance for part timers is now finacially determental....we all know that in the last 2-3 years you all have paid more for insuarnce that product.....
If you all were to be more honest and sincere and make the prudent business descion to come clean and explain to us all that sadly the insurance elibility has changed...we all would respect and understand more than you give us credit for....please stop taking away our hours so 'inadveratly" we are not even part time...when we ask to be able just to get 240 hours.
THIS IS MEANT MOST SINCERLY
Posted by: changes | Feb 23, 2007 10:38:48 PM
A few people have already pointed out that there are a couple of grammatical errors that lead me to believe this was not written by him. He uses the word "affect" - should be "effect."
Ditto on any mention, or lack thereof,
of the 3rd place.
Given how passionate that he is, or should I saw was(?), about partners the fact that they are not even mentioned would lead me to believe it is not real. Their experience has been compromised by poor leadership, and we all know that it rolls downhill.
Senior leadership has changed dramatically. The "culture" is no longer alive and vibrant in my area. It is dead, dead, dead!! That was what made Starbucks so special to me for so many years - and it no longer exists.
Posted by: formersbux | Feb 24, 2007 4:23:20 AM
Regarding the "Third Place" ideal, which has been around for years, it is truly the one ideal that Starbucks has never achieved for me at any location I've visited--even when I became a regular customer 12 years ago. Prior to ALL the other changes that have occurred in the past 12-15 years came to fruition. I have never gone to a Starbucks for the ambience, although I do not mind it. I can have brief, informal business meetings (and I do) at Starbucks, but I don't feel the desire to hang out to relax when I go in at other times to get coffee. Even in college, if I had a group that needed a caffeinated study session and wanted coffee, Starbucks was not our choice. The store layouts can be very nifty and trendy (the aforementioned layout and design changes listed in a couple posts earlier in the thread); but comfort, relaxation, conducive calm are not with the business. Hence, not a Third Place to me, no matter how much I like the employees, or how good the coffee is. I can't fit into a cup, so the coffee itself cannot work as even a metaphorical Third Place.
I know Doug Zell at Intelligentsia got a mention on the Starbucks page. I think Doug's been the smarter man in coffee for at least the past two years, rather than Howard. Heresy, I know.
Posted by: HopkinsBella | Feb 24, 2007 7:05:32 AM
I used to go to Starbucks years ago. I stopped when they put in the automatic expresso machines. The expresso is CRAP. It always tastes the same in any store and it is always CRAP. I can make a better expresso with Illy powder and a $150 Braun expresso machine. Most people don't know the difference because their drinks have so much sugar and milk. The drip coffee is fine but a coffee house that can't make a decent expresso is not a coffee house.
Posted by: John | Feb 24, 2007 9:04:18 AM
I know this is legit as I have friends at corporate who verified this for me.
I worked in sbux stores for 10 years and completely agree with what Howard is saying. When I first started, it was all about the experience. Everything I was taught back in 1995 was slowlyw ashed away as their primary goal moved towards speed of service(which according to many studies is what customers want more than anything else; sad isnt' it?).
I really hope that it moves back to it's roots, because only one out every ten drinks meets my expectations and well, the experience; what experience?
-Disheartened coffee aficionado.
Posted by: Nathan | Feb 24, 2007 12:52:51 PM
You know, I used to work at this company. I have worked at independent places and would consider myself a true Barista after being professionally trained by Alterra Coffee Roasters. In the end, I felt like this place sucked my soul out everytime I walked through the door. The coffee was never very good. All the people I worked with agreed that there is way better coffee than a scalding cup of water that tastes like burning hair. And That's just the coffee I speak of, not the espresso shots. There's still no good substitute and appreciation from a perfectly pulled shot with a nice golden crema. In fact, I can see that much of the time the crema is nonexistent, which would indicate a really horrible tasting shot. tsk tsk.
It depressed me to work for this place. It depressed me because in the end my skills didn't matter. In the end I was basically told I had to wear a fake smile and give the customers what I knew to be a mediocre beverage. The Starbuck's Experience you speak of is essentially a marketing strategy, I learned this from advertising (although starbucks doesn't advertise). The strategy doesn't target customers to buy things, it targets employees to think that there is something great in the bohemoth company that overtakes all that is good in a cafe experience.
I was told that I could move on up in the company. In the end I never moved up despite my skills, because I valued my personality way too much.
Luckily everyone I worked with that had the character I value in a person, has left, with minimal damage to their core values.
-Starbuck's Soulsucked
Posted by: Starbuck's Soulsucked | Feb 24, 2007 3:38:55 PM
Okay, after reading all of this, I feel I must pop in as well. Forgive me if you've had enough.
Howard never wanted Starbucks to be BIG. He wanted everyone to have the same romantic espresso experience he had when he went to Italy for a convention way back in the day (read Pour Your Heart Into It). If you have ever talked to him, you know how passionate he is about coffee--I was fortunate enough to meet with him a year and a half ago and he spoke on this very subject. He is deeply concerned with the loss of the word in the middle of the company name. It was past time for us to get back to it then, it is way past time now.
However, as a store manager, I take that as my personal responsibility. (Boston, I relate to your posts.) I have been with the company two years now, so never experienced the "old days" of the hazardous, injury- and repair-cursed marzocco machines. But it is my purpose to fulfill the company's core purpose: "to provide an uplifting experience that enriches people's daily lives." I am ready, willing and able to fight my DM (and already have) over labor, focus when driving sales and suggesting new items, etc. in favor of providing that experience. What is he going to say, no? It is why I joined the company, what makes us unique, and what fills the buckets of our own lives as well as those around us (partners and customers alike).
We have a couple of problems here, and they are all our own fault. The company has grown faster in size than in culture. The training materials are insufficient. The training time is insufficient. The inner promotion rate is horribly low. We are having to hire folks from outside the company who have great tools to manage business, but don't have the spirit to manage our business. I am concerned, and unfortunately don't have the slightest clue as to how to answer this conundrum.
Outside of to keep doing what I am doing: make a friend, make a difference, make someone's day. I can only change things one person at a time, but if we all did that?
Geez, I'm starting to sound like a revolutionary. Forgive me--I am feverish and should go back to bed.
/rant
Posted by: yenzen | Feb 24, 2007 4:15:25 PM
Starbucks' soul was sold long ago, Howard. The "experience" died a sad death about the time you went to automated espresso machines... then your tenure as Seattle Sonics owner clinched it. Karma is kicking your butt, and deservedly so.
Posted by: uwhusky84 | Feb 24, 2007 4:15:36 PM
I decided to wait almost twenty-four hours to see what would happen after CNBC last night. Just like Starbucks builds the company one cup at a time. We need to remember that we also build Starbucks one partner at a time. We pour our passion into making every cup of coffee and so should be give our all to making sure we make passionate partners part of our company. Granted in reality, there are some persons who should never work for Starbucks. They do not share our commitment to being a superior company by offering a superior product. That superior product is the "Starbucks Experience." There are many people who do not know what this is exactly. The Starbucks Experience includes coffee but not only coffee. It also includes the barista behind the counter who creates the coffee and connects over coffee, the human connection. Each handcrafted drink is special and custom made for each person. Finally, it includes the "Third Place" atmosphere. A place between home and work. At the present time, many Starbucks are not like this and do not, DO NOT, create the "Third Place" and thus fail in their purpose, completely. This is an unacceptable situation resulting for many reasons. I implore you all to look at yourself each day before and after work and ask yourself, how have you made Starbucks live up to its mission statement? Sometimes customers say to me, "You just made my day so special. Thank you for this great cappuccino." I simply respond, "You're welcome. Thats what I'm here for." Get it? We are paid to create this positive atmosphere and help give people HOPE. Yes, this goes back to the Introduction in "Pour Your Heart Into It" by Howard Schultz. He spoke of Starbucks as a monument to his father's inspiration and how he wanted to know if his father would be proud of him? Realizing this Howard Schultz in his email, in between the lines, says NO, not today because the gains we have made has resulted in the loss of our soul as a Company. We were willing to offer our very souls up for more money. Many of us have resisted and will continue to resist these changes at every point wherever they are. There is no doubt that the WE SHALL OVERCOME!
BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
Posted by: BOSTON STARBUCKS REBEL | Feb 24, 2007 4:34:24 PM
I agree with Starbuck's Soulsucked, but this is only indicative of the last decade. If you were a part of Starbucks (partner or customer) you know that it "was" much different.
At "that" time you could have an awesome cup of drip and a great shot.
We were Baristas that put every ounce of pride and caring into each and every beverage. We cared about the customers, the company and each other.
I think it was the customers that drove that out of the stores. No matter how amazing our drinks were, customers would just glare at us only interrupted by their watch checks ever 5 seconds.
They didn't even know a good drink from a crappy one; they only bought it for the green logo on the side of the cup.
As for Howard, he doesn't experience coffee on the level that inspired it all in the first place. This is what happens when good companies go public. Its all about the share holders.
Ok, enough ranting; I could go for days about this subject.
Posted by: Nathan | Feb 24, 2007 4:34:29 PM
I don't know if the letter is real, and don't care, but it sure has generated a lot of free publicity for Starbucks -- very effective advertising masquerading in the form of "news."
Anyway, one suggestion I have would be to close the Starbucks in the Vons in La Crescenta (Glendale) California. Starbucks does not belong in a supermarket, let alone Vons, and having it there detracts from the brand big-time. Plus, that particular Starbucks store (a stand within a store, really) is seedy.
Posted by: GRL | Feb 24, 2007 5:55:15 PM
i am merely a "little shot in a big shot world" . . . a small business owner struggling for brand identity, heart felt passion about our products . . . i read these remarks . . . both from Starbucks Executives, customers, and employees . . . and it is obvious that at all stages of growth all businesses struggle . . . the essence of the struggles is the only thing that is truly consistent . . . i just wonder what peter drucker would say about Starbucks . . . i wonder what delightfully uncomfortable question he would ask putting the whole of these problems into perspective . . . and more importantly an executable and profitable strategy . . .
Posted by: david | Feb 24, 2007 6:18:28 PM
The world is changed. I feel it in the water. I feel it in the earth. I smell it in the air. Much that once was is lost, for none now live who remember it. And some things that should not have been forgotten were lost. History became legend. Legend became myth.
Posted by: BOSTON STARBUCKS REBEL | Feb 24, 2007 6:24:17 PM
Hey everyone,
I'm a partner up here in the Great Pacific Northwest--I was hired ten years ago. I worked for six, took four off to start my family, and have been back about a month. I saw some changes happening when I left that were puzzling and troubling to me, and now that I'm back I'm shocked!! So many things have changed that in some ways it doesn't seem like my beloved sbux anymore. I still am a champion of the company, and I really love what I do, but it is very diluted compared to what it used to be. I used to be able to name every person in line, and knew their drinks. Now all anyone cares about is if I sold a cinnamon dolce, or if we got 50 or more people through the drive-thru in 30 minutes. Who the hell cares what anyone's name is, did they buy a pastry?? It's really sad. I've been feeling all this for a long time, but had no idea this was here for me to VENT! So, I completely agree with the email, but it sounds like you guys don't think it's real...hasn't it been authenticated?
Posted by: griffgirl | Feb 24, 2007 6:58:48 PM
Reading this brings to mind an analogy with another company: JetBlue.
JetBlue was (and, in many ways, still is) a darling becauise its overall service experience has been unique, compared to most of its competition.
But there were and are noticeable problems, and JetBlue's leader (Neeleman) has candidly acknowledged that they've tried to grow too quickly, resulting in some recent bumps along the way. So they made a very conscious decision to (a) SLOW DOWN their expansion, and (b) focus on fixing the existing problems and getting their service back to the standard everyone has identified as uniquely JetBlue. And then return to big-time expansion.
Sound familiar? Starbucks has focused on such rapid growth that all the problems we've described here are both precictable and fixable.
To oversimplify, four things need to happen:
1. Accept that profits aren't everything. If today's growing profits result in tomorrow's growing brand dilution, guess what -- profits will begin to dilute, too.
2. Slow down (or temporarily stop) all the expansion. Reallocate all the resources that were devoted to expansion, to "correction."
3. Go back and do the training and skills-building needed to get the current workforce back to where they should have been all along. Build employees' knowledge and passion, and improve managers' skills in how they run their stores and lead their people.
4. Go to where the rubber meets the roads -- the stores themselves -- and TALK TO the customers. And try to find those people who USED TO BE customers but have left for (greener pastures?). What "works"? What no longer works? What do THEY (the paying customers) think has changed, for better and worse... and what will it take for Starbucks to once again be THE EXPERIENCE?
Simple? No. Doable? Absolutely!
Cheers...
Posted by: SBUXOBSERVER | Feb 24, 2007 8:56:22 PM
Hey John Moore - you were SO wrong.
Maybe it is time to stop arm-chairing Starbucks. You haven't worked there in years, and you just try to make money off of working in the field. You never worked on the brand.
Posted by: HS | Feb 24, 2007 10:15:53 PM
I'm a fairly new barista and work in a northeastern U.S. Sbux that has retained its neighborhood feeling. We're in a shopping center but it's the partners and the regulars who make it feel homey. I really enjoy getting to know everyone and their specific drinks, suggesting new ones, even making mini samples at a slow time, etc. I'm passionate about coffee and the third-place experience--as are most of my fellow partners. It's truly contagious.
I do appreciate the sightline issue--and frankly, it would be better than having a customer leaning way over the bar to see the drink being made.
P.S. I did know the answers to the 3 questions posted earlier. :-) But then, I have some great mentors who are indeed passionate about coffee. I've redone shots when I feel they've sat too long (CM drinks in particular)--and explained to the customer why I did so. They are appreciative.
Posted by: Tattoo'd Barista | Feb 25, 2007 5:38:35 AM
Thank You Howard Schultz!!! I have been with starbucks for 12 years now and I have to say...I have seen the decline of Starbucks. Most of the new partners have no knowledge of coffee. they have no passion for what Starbucks is all about. I almost threatened to quit when we switched to the Verissimo machine because I felt like we were moving towards a MacDonalds type of establishment. We lost the ART of making coffee. The new machines can't even give you that really beautiful foam that you get from steaming with a La Marzocca. It's hard to create that 3rd place when your store looks like a fast food establishment. It has no soul, no character, it looks exactly like the other store 2 blocks down the street. It is even harder when your DM gets on your case because your labor was 2% over or under!!!! I'd like to see someone who can get their Labor at 0% variance. where is that 3rd place. How can a customer feel welcomed when the barista is not given the time to make that connection because once their 3 minutes are up from the time they ordered to the time they get their drink labor says we don't need that barista on the floor anymore unless there is a customer immediately after.
I used to be able to spend time to talk to the customers. get to know them. Make them feel at home. I used to know all their names, their kids, their partners, their drinks.....I used to be their friend. Now they are just a familiar face I see everyday.
So thank you Howard for acknowledging our weakness...let's hope that middle management is listening.
Posted by: bucksveteran | Feb 25, 2007 10:00:25 AM
Thank You God (Howard Shultz)! I have, over the last 10 years, seen the ever so prevalent decline in Starbucks. It is a shame that society and people cant walk into a Starbucks anymore and relax, knowing that coffee may take a few minutes longer with a manual machine. Rather, we as a society would rather have crappy coffee, say nothing personal to the employees, in exchange for getting a pruduct in 3 minutes instead of 3-6. I hope and pray that Starbucks will take this memo to heart and reinstate certain aspects of the company and get rid of things like so much crappy retail! -JP
Posted by: JP | Feb 25, 2007 10:19:35 AM
I really hope it's real; if it is, I have this to say:
AMEN AMEN AMEN, Howard. I've been saying exactly the same thing for a long time. Most of the new partners I work with don't know how to make a drink, connect with customers or what the different coffees are about, and they don't care. The soul of SBUX is being sucked away by the business "plan" of the man from Walmart, and it stinks. What make us special and unique is getting kicked to the curb in the grab for big money and sales. I hope that Mr. Schultz can fix it, and fast, before we really do become the "Walmart of Coffee".
Posted by: javajockey | Feb 25, 2007 11:29:21 AM
http://money.cnn.com/2007/02/23/news/companies/starbucks.reut/index.htm?postversion=2007022316
Starbucks chair: Brand getting watered down
Company founder Howard Schultz says automatic espresso machines, bagged coffee and 'cookie cutter' store designs have led to sterility at chain.
February 23 2007: 4:48 PM EST
LOS ANGELES (Reuters) -- Starbucks Chairman Howard Schultz warned executives in a memo last week that measures taken to fuel the company's rapid expansion have led to a "watering down" of its iconic brand.
Schultz, Starbucks' founder, wrote on Feb. 14 that automatic espresso machines, bagged coffee and "cookie cutter" store designs have led to a sterility at the chain that has invited competition from fast-food companies and others.
The memo, which was posted on the Web site http://www.starbucksgossip.com, was first reported by the Wall Street Journal on Friday. A Starbucks spokeswoman, Valerie O'Neil, confirmed the authenticity of the memo to Reuters.
Posted by: it's real alright | Feb 25, 2007 2:43:19 PM
As in two other threads where I posted today (new here), I'm a customer who was once really excited about the concept Starbucks seemed to have. I remember walking in and being hit with that fresh coffee smell. I remember when the frappucinos were really good (especially mocha).
As I wrote in the other thread, my last purchase there was a 'chai' (???) blended creme with chunks of ice the size of ring finger nails in it and a chemical aftertaste for which I gave up over 3 hard-earned dollars for a nothing taste and presentation experience. Not only that, after reading sites where Starbucks baristas talk about customers like something they wiped off their shoes, I've pretty much had it. If you don't enjoy the business, please find another way to earn a living. The public has always been difficult to work with but some people enjoy people and that's why a chain like In and Out is so successful. They hire based on personality, not 'coolness' or whatever Starbuck's requirements are. What REALLY irritates me, as said prior, is not even being able to FIND small independent coffeehouses in anything other than crappy locations because Starbucks has to tie up ever single decent location in every single city of any demographic they want. I'm sick of it, sick of their attitude and sick of their really amateurish, sloppy drinks. I hope the tide turns and landlords get sick of it too. It's not giving the public a choice.
Posted by: | Feb 25, 2007 2:52:30 PM
It is REAL. Both my local papers covered the story. As for any one that beleives it to be a fake, and has a problem with what was said. Guess what you are PART of the problem. Get over it. We are not Wal-Mart. We are suppose to stand for great coffee, and service to match. But if our service matched the quality of espresso we sevrved currently, we would not even talk to customers.
Posted by: Seattle Burnt Bean | Feb 25, 2007 5:05:44 PM
Have been in Hawaii for 2 weeks+ and just heard about this and now online reading about it....I used to be delighted to get into an area where there was a Starbuck's (nothing local, altho building a "plant" as I type). I would go out of my way to visit and experience a Starbuck's. NOW I do just the opposite...when I asked the concierge in Kauai where to find a really great espresso drink and she said Starbuck's I said no way, I want a really good experience...she sent me to a small place with a california roasters product...it was truly a personal experience....as a former, retired business owner....Starbuck's will need to improve or they will be going the way of KMart...
Posted by: Karyl | Feb 25, 2007 5:26:10 PM
I was just discussing today with my co-ASM (well the ASM now that I'm stepping down/leaving (up in the air on that), and we basically agreed that 0%
variance is the devil. 0% variance and the hyper-awareness of the need to be
accountable to the shareholders and the
market has killed "The Starbucks Experience" and "Legendary Service" to a large part.
When was the last time you were able to do a French Press and actively sample it? Or make samples and take them to neighboring businesses? When was the last time you were able to sit down in your apron and actually connect with a customer?
Wayyyyy too long.
Posted by: DT | Feb 25, 2007 6:01:07 PM
DT,
I work at a store that does 40k plus a week. Now, you may think that's the jackpot in extra labor, but we never have more than four people on at a time, so bear that in mind. We manage to do 3 active samplings during each shift supervisors shift. Try getting a work ethic.
Posted by: ashiftathighvolume | Feb 25, 2007 7:35:34 PM
ASHIFTATHIGHVOLUME
blow it out your sanctimonious ass. I'd work circles around your punk ass everyday of the week and twice on Sundays.
Posted by: DT | Feb 25, 2007 8:18:00 PM
ASHIFT
you don't know WTF you're talking about, so don't presume just because you think you're hot shit.
I was likely doing this job when you were in high school, possibly even middle school. So my work ethic isn't the issue bub.
Posted by: DT | Feb 25, 2007 8:24:02 PM
what does Mr. Schultz knows about actually working at a store? I am sure he knows about how to run the company than I do but what about actually working in a store he created?
I have been with the company for almost four years now. The way I see it Starbucks is almost becoming another fast food burger place. get the drink out as fast you can regardless the quality. cut the labor cost to zero. everything is about keeping the cost down. there is no time to connect with customers at all.
everyday partners are ask to do the impossible with little help from the management. ask for more floor coverage you'll get an answer back about labor coverage. asking about why the roasting planet order isn't sufficent to last you'll get an answer back keeping the cost down.
trying to make a suggestion on how to make the store more efficient and customer friendly you'll get an answer back that you are not a team player and that's how the big boss wanted and there isn't anything you can do about it. so get use to it in other words.
so, mr schultz please take the time to work in a store not just visting them. spend a month in a busy store and see what it is like to work in one instead spend all your time in the office doing whatever.
anyway, i can go on forever.
have a good day
Posted by: mike | Feb 25, 2007 9:41:54 PM
In response to the person who said "Not only that, after reading sites where Starbucks baristas talk about customers like something they wiped off their shoes, I've pretty much had it. If you don't enjoy the business, please find another way to earn a living. "
While I understand if you don't enjoy the business get another job....at the same time many of us still enjoy our jobs, although it seems as if some customers push us to our limits. I don't think bad mouthing a customer is justified if they have done nothing wrong.
At the same time if you had to put up with verbal abuse that partners do where people get personal for no good reason I wonder how long would you last before you needed to rant over how poorly you have been treated. If a barista is extremely rude I can understand a customer being put off and upset; however, when a barista is being friendly and bending over backwards for them only to be told how stupid or whatever they are then yes why shouldn't they be able to rant.
We are not vending machines and we do have feelings. Just because we work in customer service, does not give anyone the right to try to degrade us as much as possible, or throw coffee at us.
Some customers and their behaviour does deserve to be ranted about, respect goes both ways. Why should baristas have to let customers treat them like something they wiped off their shoe and the customer be able expect them to smile through being called "stupid" or a "fat b***h" as one of my coworkers was called?
Posted by: JavaJunkie | Feb 25, 2007 10:25:52 PM
Only 4 people on at a time. Wow, you're store manager must really suck because they obviously don't know how to use ALS correctly. Most stores who make that kind of money open and close with 4 partners at all times. There are at least 4 partners at all time on the floor.
There should be 1 register, 1 floater, 1 food manager and 1 bar partner. All of them deployed and working quickly.
During peak times there should be 7 partners on the floor possibly even 10 depending on the labor hours alotted,
BOSTON STARBUCKS REBEL
PRIMUS INTER PARES STARBUCKS REBEL ALLIANCE
Posted by: BOSTON STARBUCKS REBEL | Feb 26, 2007 1:02:52 AM
All they need to do is create multiple brands, a retro one for the coffeehouse feel, a business one for fast service, and so on. They can't be all things to all people in one giant brand. Everyone else does it. Coke, Pepsi, etc...
Posted by: Kris Tuttle | Feb 26, 2007 3:53:43 AM
I’m a regular customer at Starbucks and I agree with DT, “The way I see it Starbucks is almost becoming another fast food burger place. get the drink out as fast you can regardless the quality. cut the labor cost to zero. everything is about keeping the cost down. there is no time to connect with customers at all.” Mr. Schultz believes Starbucks has lost its soul. Both are right.
When one walks into a Starbucks you line up along with a bunch of other total strangers and as soon as you get to the counter you can feel the pressure to give your order concisely and quickly. Where is the customer appreciation in all of this?
So, there are customers who are discourteous and abusive but you get them anywhere. It’s the ‘Soul’ bit I care about.
I’ve never seen a manager walk around Starbucks and actually talk to customers on a daily basis. If you want customers to return they have to like the experience, they want to feel it’s ‘their place’ which means building more of a community experience much like the English pub. Starbucks needs to become The Centre of the community. If each Starbucks got involved in a local community project and invited customers to participate instead of just staff wouldn’t that help? It’s a bit like English pubs getting their customers to play cricket or soccer and posting photos of the event on the walls.
Walk into any Starbucks and you’ll see a bunch of people sitting in small groups but no one talks to anyone outside their group. Give customers a chance to grab a quick coffee, latte et al, by all means, but why not have an exterior access point (a quick order counter) so this access point doesn’t interfere with those that want to relax inside the store and experience the pleasure of either being on their own and reading, or the opportunity to chat with others. Encouraging more customer participation has to come from the management.
Posted by: Brit | Feb 26, 2007 8:51:25 AM
I don't work at Starbucks and I no longer purchase coffee there. Starbucks is to coffee what McDonalds is to a hamburger.
They both suck.
I never had a chance to go to Starbucks when it was a small store and still cared about its customers. But here in Washington now, particularly in the Seattle suburbs, all Starbucks suck, period.
Oh and to the person who mentioned no blue walls, that is because blue makes you not want to eat. Red makes you want to eat the most.
woo.
Posted by: Diane | Feb 26, 2007 9:54:06 AM
I worked at Starbucks '98,'99,'00. The reason I got out of there was for the simple fact that Bucks started bringing in those crappy automatic machines. I knew that that would be the end of the "Starbucks Experience" No passion, no love, just get people in and out was to me the goal. Fortunately though, I took all the good stuff Bucks had to offer and opened up my own shop in the Greenlake area. I just have to say thanks to Howard for ruining a good thing, because it opened all sorts of opportunities for me and the LOVE i have for the biz.
Posted by: damon | Feb 26, 2007 10:48:46 AM
While I agree that Starbucks has changed (I'm a Seattlelite who actually patronized the original Starbucks)in that they no longer roast their coffees on premises & have lost that "coffeehouse" appeal, I feel that many local Starbucks do a wonderful job of creating a coffeehouse culture based upon good customer service & consistancy of product. I do miss the shared tables, delicious aroma & less-hurried atmosphere of yesteryear, but I'd say the changes have evolved in good part due to the client-base. The Seattle coffee-culture is casual & friendly. It's a combination of people & place. It cannot be quantified or duplicated, but each Starbucks can make their unique contribution to a community by pulling together the best elements of their own people & place to make a Starbucks coffee experience something comforting & inviting.
Posted by: SB girl | Feb 26, 2007 11:02:59 AM
Its so sad that starbucks has lost the stars from its name. Probably in a race to open as many stores as possible, they ended up hiring as many rude employees as well. Back in the days (dont even remember how long ago!!) Starbucks was worth the bucks, when the coffee was fresh, the people serving it were warm and nice. Now, they just slam the drink at your face, sometimes you have to ask them AGAIN to customize your drink, eventhough you did that while placing your order and then hear them growling and ranting about it.
And this is common for all the starbucks irrespective of the location. Something common after all!!
I remember when having a cup of coffee was so peaceful. Starbucks has changed that approach in a bid to win this corporate race. There are nicer coffee chains like Costa or perhaps even Juan Valdez, where the server listens and responds to your needs and is not in a rush to keep the score of customers attended high!!
Its a hightime that Starbucks realizes this before it even loses the bucks of its customers!!
Posted by: kunal | Feb 26, 2007 11:18:59 AM
iaw hellnototheno. *$ lines are already out the door. Go to a place where there's more than one coffee shop on a block and one is *$. The others never have the lines like the *$ does. And beyond the lines is the small mob of post-purchasers waiting ever patiently for their drinks.
It's arguable that there is absolutely no way *$ would be as successful as it is if it *didn't* streamline and cookie-cutterize. To some extent, store standards are good. When you are on the road, and you pop into the Oshkosh *$, it's because you want the same double shot extra foam light whip not-too-hot half breve mocha cappuccino you get in Poughkeepsie.
I think there is a place for cookie-cuttered Starbucks. What I don't think is that it should cause all the other, soul-intact, coffee shops to shut down.
Bottom line is if *$ had been focused on maintaining its soul, it would never have taken off like it has.
Posted by: K | Feb 26, 2007 2:03:29 PM
This seems like the right thread to ask for comments on the following idea:
"I am a longtime passionate Starbucks lover and I have a TERRIFIC idea for Starbucks.
The idea is to support local artists by having significant wall space available in nearly every Starbucks for the display of local artists’ work.
The reasons why this is a terrific idea are as follows:
1) It used to be new and exciting to go into a Starbucks. But then the stores started to all look a little bit the same. Supposedly sameness means everyday customers are comfortable no matter what store they go to. But this is really not true, not the Starbucks way, and even McDonalds has many locally themed restaurants (awful thought they are). The day Starbucks started to become less “special” was the day I saw the first bit of Starbucks corporate art (coffee photos) in a Starbucks. Local art will bring a “feel” and an “aliveness” back to each individual Starbucks and it will make people excited about going to visit different Starbucks in their area instead of just one.
2) Local artists, and their friends, who are people who frequent coffee shops and recommend coffee shops, will love it and obviously it is a great benefit to the artists who will display their works.
3) It is really great PR to have a Starbucks local artist program just as it is great to have Starbucks involvement in music (CDs and Hear Music) and films (Akeelah and the Bee).
4) The problems which may be created can be easily dealt with.
a) Offensive or controversial art: An artist would supply copies of the works (both digital and printed) and individual store managers could perform the first review for objectionable material. The material, if without problems, could then be forwarded to a regional manager for screening with store manager comments. Those proposed exhibits which pass regional manager review could then go to a full time art review director who would be directly responsible to upper management in the event of any problem. With 10,000 US stores, an art review manager and a very small staff could easily review dozens of proposed exhibits every day which would be enough for nearly every Starbucks in the country to have four different three month long exhibits every year (still an unlikely scenario for various reasons).
b) Difficulties in displaying art, liability for damaged art, liability for art injuring patrons: These concerns can all be addressed by detailed mounting guidelines supplied to any interested artist (on the web) which would specify the allowable dimensions, weight, materials, and hanging hardware so that the art would interface with standard mounts in the Starbucks stores and very little store staff time would be demanded. The artists would install the art under store supervision with safety checks during some low traffic period.
Posted by: Sarasota Starbucks Fan | Feb 26, 2007 2:17:56 PM
I live in Paris where a few Starbucks recently opened. It's absolutely unconceivable to me to have coffee in a fastfood. And Starbucks looks too much like McDonalds'... Drinking coffee in paper cups is also absolutely shocking. In my view, there is a fundamental contradiction between globalized business and small shops that have to fit into their local environments.
Posted by: eric | Feb 26, 2007 2:51:06 PM
In regards to Howard's recent memo to Jim Donald and the senior staff, he also needs to start worrying about a different type of watering down of experience. As a recent former partner in Dorothy Kim's groups (one of the senior executives cc'd in his memo), there have been a mass exudus of experienced partners in the Supply Chain group and I am in other groups as well. Starbucks, led by there Directors (Directors are underneath VP's and over the Manager's) have launched and all out attack on there experienced partners to pressure them to leave. I myself had over 15 year of experience in Supply Chain and was near the top of pay range. My director created a hostile work environment for me that one day became unbearable and I recently left the company. After the experienced partner leave, they either wait the longest time to replace them or they replace you with someone right out of school to keep costs down. In addition to Howard's concern of watering down the experience, this watering down of experience will also bite him the the butt very soon!
Posted by: christine | Feb 26, 2007 5:20:04 PM
i love this man.
i had no idea this was out until my district manager told me he would fwd. it to me today. believe what you want, but this is a very real letter that has been recognized by the company. it's in the news, as well.
Posted by: guaca | Feb 26, 2007 6:07:46 PM
Maybe starbucks should try to save the company by bringing back everything Howard mentioned and getting rid of those awful Target and other " Liscence Concept" stores!!!!! They arent real and they dont do any traning all they do is give starbucks a bad name!!!!!!!
Posted by: Jay | Feb 26, 2007 7:02:04 PM
As a customer of over ten years and a partner for the better part of a year, Howard Schultz's memo and its massive response have led me to reach one major conclusion: there is no point in placing the blame.
Even if there were only one tiny Starbucks in the whole world, one with a La Marzocco, bins of beans, quirky decorations, and no Frappuccinos, things wouldn't be any different if it were populated by hurried, angry customers and baristas who cared only about making 7 bucks an hour. This company has treated me very well for many years, and it's done its best to evolve with a less passionate crowd. For that I'm quite proud.
Let's face it: the majority of customers aren't coming into Starbucks for a cappuccino and a conversation anymore. They don't want to connect. They don't want their name written on their cup. They don't even want coffee. They want a "LARGE Strawberry FRAPP," they want it through the window of their Ford Focus, and they want it damn fast. Then, when they see the tip jar, they'll forgo the change and drop in a Post-it Note. "I don't tip at Wendy's so why should I tip here? P.S. - Your drinks are too expensive." (Yes, this actually happened at my store just a few weeks ago. Reactions were mixed. Make up your own ending.)
Many of our partners are with us today solely because they recognise that they can get a job with excellent benefits extremely easily. And with no deep fryers, either. They get their checks, and customers get "whatever crap it is that they want." Meanwhile, their managers insist that drinks are handed off within three minutes, and that every partner sells at least ten pastries every hour. Next week's schedule depends on it. Do I agree with this situation? Of course not. Do I accept it? I don't have much of a choice.
We are part of an enormous international family of companies, stores, and partners. As members of this family, it's our responsibility to do the best we can with what we're given. When customers stop in, we can say hello, ask them what they want to drink today, and do what we can to make their visit memorable. If they want to connect, we can connect. If they don't, we can hand off their beverage, smile, and hope that the next visitor provides us with the respect we consistently provide.
So our shots aren't as great as they used to be. So our machines are too big. So we've got drive-thru windows. So massive plastic cups of pink stuff have overtaken little mugs of rich espresso and frothy steamed milk. These are sacrifices we've been forced into taking, but they're not reasons for us to forget what's most important. We can't forget what makes our company what it is: our legendary service.
We'll always be faced with less-than-wonderful customers and partners, and we'll certainly be faced with less-than-welcome changes; this is the way of the world. But let us not forget why we're here, and let us not forget all the things that make our jobs worthwhile.
Thank you,
Veedz
Barista, Store #9774
Posted by: Veedz | Feb 26, 2007 7:33:47 PM
It's easy to be a proper brand. Don't put profit as the objective, put the experience. The money will follow. A brave memo from Mr. Schultz
Posted by: Charles Edward Frith | Feb 27, 2007 3:06:59 AM
The memo is real. Check the Store News section on the Portal.
Well said Veedz.
Matt
Store Manager, #5520
Posted by: Matt Freeman | Feb 27, 2007 3:40:28 AM
I am an sm and classroom facilitator...and I love my job! When I teach Starbucks Experience, the new baristas and RMTs know my passion and genuine concern for them. I explain that the most important thing we offer at Starbucks is an EXPERIENCE. Yes, a survey shows that McDonald's was the more popular choice...but taste is objective! Do they offer LEGENDARY SERVICE and the Third Place to ENRICH PEOPLE'S DAILY LIVES?
Let's focus on customer care...let's create enthusiastically satisfied customers...let's quit blaming and deal with ambiguity the Starbuckian way.
Howard shows Leadership Courage...let's get back to doing What We Do and Why We Do It!
Posted by: guamiswami | Feb 27, 2007 9:11:21 AM
This is real. They've posted a rather ambiguous post on the Starbucks Online: Retail Store Portal stating only that the "internal memo leak" is in fact real. I had to do a google search to find out what they were referencing because the actual memo was nowhere to be found on the intraweb.
I have only worked for Sbux for 4 1/2 months, but as a shift supervisor I have to agree with much of what the memo is saying. Our store is suffering financially because we must conform to idiotic desk jockeys who have never been past the espresso machine at the end of the hall in their life. I feel so fake and lame while I'm working ... forcing the newest promo drink down someone's unsuspecting throat, just to please the pencil pushers. Real regulars are the ones that truly love coffee as much as we do ... but all of the marketing and design fails to attract these people to our stores. Quality coffee does not equal a quality experience. We've got the quality coffee ... other places have the atmosphere and genuine people.
Posted by: Joshwar | Feb 27, 2007 1:33:58 PM
I agree.
As a daily coffee buyer, I used to visit one of the local Starbucks exclusively. However, the loud music and sensory overload got to be too much. I wanted to sit down and enjoy my coffee...maybe read the paper, and take a few minutes to wake up. Can't do it at Starbucks anymore.
Lot's of places make good coffee. If I'm in a hurry, I can go to Dutch Bros get a great coffee and never have to leave my car. If I want to relax, there are several quiet coffee shops with comfortable couches and wifi right in my neighborhood.
What is Starbucks hook now?
Lastly, my unrelated pet peeve is the "geyser lid" that Starbucks uses. C'mon guys, go get a cup of coffee at Dutch Brothers (or, God forbid, 7-11) and take a look at the splash-proof lids that come with their cups. This isn't rocket science!
-Perry
Posted by: Perry P. Perkins | Feb 27, 2007 2:37:11 PM
Firstly, I neither know nor care whether or not the memo is genuine - even if it is fake, it raises perfectly valid points about the expansion of Starbucks. It is hardly rocket science though, and it's not something that's unique to Starbucks - any chain that seeks to expand as rapidly as it has will find it difficult to maintain its original values and preserve the original qualities and character which made it successful in the first place. Starbucks now faces a dilemma - does it want to be just another ubiquitous western brand (McDonalds, Nike), or does it want to keep itself as a chain of bona fide quality coffee houses serving an exceptional product and run by passionate and dedicated people? As a Starbucks "partner" (I use the term loosely, "employee" is still a far more accurate description), I don't see how it can fulfil both aims satisfactorily.
In my own experience in the UK, a good Starbucks store can be very very good, serving a better quality product than anywhere else on the High Street and offering a more pleasant experience than any of its competitors. It depends entirely on the people running it, though. In my district, of 9 stores, there are 2/3 "model" stores, and the rest are mediocre at their best, and at their worst simply damaging to the brand.
There is no point in hiding behind the Flavour Lock, or the use of automatic machines - when a good team of baristas are on shift, even at the busiest times in the busiest stores, it should still be possible to provide good quality coffee, and the "Starbucks Experience". A good barista knows exactly how to test and calibrate the machines to produce perfect shots, and even under pressure can produce a rapid flow of quality drinks, prepared to standard. The real problem is that there are too few such baristas around - of a team of around 20 in my store, there are only 3 or 4 baristas that I would trust on bar during a rush period to provide the appropriate standard of drinks.
Before getting worried about the atmosphere of the stores and the "romance" of the manual machines, I suggest that Mr. Schulz looks at how he can ensure that all his employees are enthused about and dedicated to the Starbucks brand as they could/should be.
Posted by: EnglandUK | Feb 27, 2007 3:00:36 PM
My two cents. I am an old man in the district, having entered my fifth year. I have gone on record to VPs saying "I can't believe you pay me for this, suckers." Things have changed in the last 18 months, for me and the company. Now, I find it difficult to go in. It's not the customers. It's not my subordinates. It's "senior management." My direct supervisor came from McDonalds. His from Blockbuster. Hers from the NBA. I miss the days of having a former barista as my superior. I think that Howard may finally be realizing that this thing which he helped create is not what he had in mind when creating. It's his Frankenstien, and now is running amock. I have watched as my store comps go crazy, and yet the stock price drops. My customer count goes down, while my sales keep rising. What happened to "The Human Connection"? "Nailing the basics"? This is a disturbing trend, that we react to the market. We raise prices after not hitting our projected earnings, first drinks then food. We (Howard) is reacting, not creating. Leadership courage, bah. He is doing his job in taking responsibility. I think this is the first step to recovery. Our stock is going to drop below $30, soon! We are pushing customers out the door by shoving so many "peripherals" down their throats. We should be offering the best cup of coffee for a reasonable price in a great environment. Our growth is handicapping us. How can we maintain the same level of service when so many, barista to VP, can't make a good cup of coffee? We're trying to get the biggest chunk of the market share as possible and sacrificing our mission to do so. Yeah, I'm burnt and trying to figure out if this is worth the headaches that I am getting. Bah, Ramble. Bah. I am more likely to step down to a barista than outright quit. They got it made! And I would keep my beanstock (not that it's worth much.)
Posted by: Frustrated | Feb 27, 2007 6:41:24 PM
If you work for Starbucks, why not tell upper management that the independent coffeehouses are right now talking about being 'eradicated' and their impression of Starbucks, which was already as an aggressive category killer, has just dropped another notch. Not that Starbucks cares because today you're a hero in the business world as long as you're big and profitable, no matter your tactics. Howard didn't say he wanted the competition 'eradicated' but that's how they heard it. As I read it, it says the reasons that your customers are turning to others must be eradicated. I'm reading coffee forums (going into a specialty beverage business myself..not coffee...and wanting to see what similar independents in that niche are saying).
I happen to know someone who founded a very famous fast food (taco) chain years ago. I know that he mentored several others who became his competitors. He didn't try to exclude them in leases, he didn't try to put them out of business. He had the brains to know that competition is healthy and increases market share for everyone who has good product. The problem I have with Starbucks is the attitude of wanting to 'own' the entire coffee market.
Even without being in the coffee business, we've spent a year trying to find a good location because Starbucks now writes out ice cream, tea, and as I undertand it, even juice franchises other than Jamba Juice? Anyone wanting to start a business written out by Starbucks muscle influence with landlords will testify that they are taking no prisoners. They appear ruthless and you reap what you sow. Now the customers/public may become ruthless with Starbucks. 'Karma'..whatever. Maybe we're beginning to see some reaction to the tactics Starbucks has used for years that the public is now becoming aware of. Combine that with the decline in product quality and maybe the little guy will still get a fair chance for some good locations as landlords (who aren't stupid) start wondering about whether it IS good business in public perception to allow only a megacorp in their little strip mall or plaza.
Posted by: | Feb 28, 2007 8:21:50 AM
Seriously?
1. Clean the shops, especially the upholstered chairs. This is a no-brainer.
2. Free WiFi is a must - this almost as big a no-brainer. Pay WiFi feels like an over-priced rip-off, at best, and customer (non)care/arrogance at worst.
Two easy fixes . . .
Posted by: Earl | Feb 28, 2007 12:00:31 PM
If you don't want to be commoditized and compared to a 'fast food' operation, get rid of the hard seats. Everyone in the retail food industry knows that hard seats are put there to get people out quicker. If I'm paying for WiFi, I'm stickin around. But it's not worth either if my ass is numb.
:)
Posted by: Doug Karr | Feb 28, 2007 12:47:26 PM
While I am but a lowly customer, I sure hope this is real. Whether it's one machine or another, getting back to the core of a business, as well as bolstering warmth, communication and personality in the stores again sounds like a fantastic idea. I've been loyally attending Starbucks at least a few times a week for the past 4/5 years, and I noticed the gradual erosion of all these elements.
I'll join many others in being happy to see the greatness of Starbucks return.
Posted by: David Chartier | Feb 28, 2007 2:05:22 PM
The Memo has been confirmed by Starbucks as being "Real" .... they actually have a 'Rumor Response' link on their website:
http://www.starbucks.com/aboutus/rumor.asp
I can't believe the amount of time spent debating its authenticity...seriously.
Posted by: smde | Feb 28, 2007 3:51:43 PM
In response to Earl:
We signed a contract with T-Mobile long before free Wi-Fi!! As soon as we get out of that...you should see free wireless!! As for the hard seats...it is a cafe. Do you have upholstered seats in your dining room? If so, don't you worry about spills and keeping them clean? If you have hundreds in your cafe everyday who care less than they would if it was their furniture...could you keep it spotless? We try very hard because you are our guest and we want you to be comfortable...just ask.
Posted by: guamiswami | Feb 28, 2007 5:00:05 PM
My local Starbucks is fast. The customers have a need for speed. Some slow down, most don't. They want to grab and go. The store meets this need quite well. I think this is because the staff is seasoned and efficiency doesn't suffer due to high turnover. The manager is good at selecting the kinds of people who *should* work there. I have a problem with the coffee. It's gotten worse. It's burned or old. I don't get the expensive high-falutin drinks. Coffee, mild that's it. Great service, sorry product. Tsk...
Posted by: NGR | Feb 28, 2007 5:14:25 PM
I still think you can do no wrong, Starbucks.
Keep up the good work.
Posted by: paul merrill | Mar 1, 2007 1:19:04 AM
Guys, it's coffee. Good coffee, but coffee. Just imagine we were talking about clean water in Africa. There would be three comments. I know you all work for Starbucks, and you all need your jobs, but to see people arguing about the benefits of a La Marzocca machine in respect to the growth of the business when millions don't have clean water looks like teenage politics. What none of you realize is that it was never about the coffee; it was the image. Starbucks makes shitloads of money in England. We drink coffee, but not like you do. We know nothing about coffee. Starbucks is a marketing phenomenon defying all reason. You cannot patent coffee. Starbucks sells a commodity at a ludicrous premium because of the brand and the marketing dollars. It can be done much cheaper and better (I've had some grotesque coffees and Starbucks tea ability in a tea drinking environment is truly dismal). If you believe the Starbucks hype you will be superceded. From my experience you deserve to be.
Posted by: Jack Dupree | Mar 1, 2007 1:59:24 AM
I hope Howard (or someone in upper-management)checks these posts himself to get a finger on the pulse of what is going on out here...
I am a store manager in New York City and I have been struggling with what's going on with Starbucks... I've been around awhile and for years could've been a Starbucks Cheerleader with the way I told everyone about the wonderful company I work for. In the last year though it has taken a terrible downword spiral! And the lack of "Creating the Environment" for partners and management has direct correlation to Howard's memo about the company itself! The culture is fading fast... and it getting hit the hardest I think in the major urban centers like Manhattan. Truth is, customers *do* want speed today--but they still *expect* legendary service. Especially in the rat-race that is NY, we have to try to balance this insane need for speed with our core values. Yet it is becoming "cookie-cutter" with design and operational policies. The quaint neighborhood store on Long Island can afford to keep closer to the roots of Starbucks. An "Engine-Room" store like mine can't... not with literally lines out the door most of the day. So they saturate with another location, drop the surrounding store sales--and it's your fault? I'm not sure the introduction of the Verisimos was the end of the world... You CAN maintain coffee culture around it. You can't though when you don't have enough labor to effectively run the store let alone train properly or accomplish non-coverage tasks or heaven-forbid get partners engaged in meaningful coffee tastings! And you can't when partners and managers are losing their vision, desire, and begin to feel like they are working for just another fast-food giant.
It all started for managers when they canceled the Costa-Rica convention... mind you we did not ask for it. It was presented to us, they send us coffee-bean invites at home, rush us to get working on passports, then BAM it's gone. Ok ok, financials... we get it. But then don't come up with such a hair-brained idea in the first place and get all our hopes up. Then they don't even replace convention with a local one... and boy--we need a bit of a pep rally here! Around the same time we had started with working on "Creating the Environment" focus based partially on Partner View Survey Results... Ok we raised hourly rates, even some management got raises. Woop-de-do! I myself did not come to Starbucks for the $--I took a pay cut to get what was supposed to the best environment to work for--that professed "Work-Life-Balance" so I can be a parent first.
Now? Cut costs cut costs... speed up service but cut labor? Put on drive-thru fast food looking headsets when you do not have a drive thru? HUH? That certainly doesn't help us connect with the customers! Take away cup lablers from busy busy stores--that in fact helped us connect by requiring names and keeping time off cup writing so that we can save that time for connection at the hand-off plane. Now lines are longer out the door and slower! Have zero-variance labor plus low non-coverage so managers don't have time to get reviews done on time or get store cleaned properly or create an environment for our partners--so you either work 50+ hours (inelligible for OT as mgr) to get it done, or you don't and you get fired. And wow isn't firing managers easy now-a-days? Just the other day a manager was fired over in Times Square after 6 years--no he didn't sexually harass anyone, no cash problem, no attendance issues, partners valued and respected him, district team loved him--he was manager of the quarter 2 years ago and a contender for DM--no, he made the cardinal sin of speaking up against a former DM who was not doing well, which then stirred up a dislike from the old RDO, which transferred to the new DM who after only 2 mths--not a fair amount of time to work with someone's performance--puts him on a BS action plan and then fires him 30 days later for completing all points on action plan. He had NO PRIOR corrective actions or performance issues on file in 6 years! Someone with 6 years and such credentials doesn't deserve a bit more loyalty and possibly assistance to do whatever DM now expects him to do? Oh yeah, get this--he didn't "fax schedule worksheets on time" or complete 3rd week out schedule on time (mind you numerous other managers in same district are guilty of the same)or "embrace" and effectively roll-out the lousy headset system of operations he was opposed to and received too many customer complaints about. Talk about unfair and biased accountability! Oh by the way, same district manager also recently told a manager of a high volume store to delete partner punches so payroll would look less terrible, then send in time-cards so they still get paid but it doesn't show up on store reports. Same DM mass-transferred out a number of assistant managers all over the city, to create his own team. Then he *told* store managers to give assistants a "needs improvement" on their 6 mth check-in review (even though he knows them 2 1/2 mths)and manager had no choice but to comply... I'm feeling a liability building up here folks--but you know what, I bet that DM is also being aggressively pressured to turn in results. In another district a manager of 9 years terminated for "performance"? A district manager in mid-town WALKS OUT AFTER 14 years? Walks out, no notice? An RDO takes a step down and 'moves out of dodge'! The lead training specialist is forced to hold Starbucks Experience classes for baristas himself because we're suddenly too cheap to let the managers off the floor to do it? Classes canceled, Development postponed, commitments recinded? I read the post from someone who said they were systematically chasing away experience and I think they are right! Word on the street in NY is if you're salary is up there in the range for your position, they need to get you up or get you OUT. They don't want people experienced in position for too long, it's too expensive. They want development to support growth but development is BS and they are killing us at the store level. There's so much more abuse happening in NY it's insane. Managers want to make sure partners get enough hours, especially if it's for benefits--but then we're forced to run shorter than what would provide the best service--I don't care what ALS says--and our job security threatened, with corrective actions, if we can not consistently maintain a zero-variance labor. Good managers reach out to stores in need to help their partners find hours, but there's