It's official: Starbucks to raise the price of coffee drinks on July 31

They're going up an average of 9 cents -- the second price increase in about ten months. Wall Street loved the news (it was officially announced after the market closed, but word was out before that), as Starbucks shares rose 47 cents, or 1.7%, on Monday. (Seattle Post-Intelligencer)
> One angry customer says: "If they raise it, I'm not going to go there, even if it's only 9 cents." It's not the money so much as the idea of two price increases in a row, she says. With Starbucks' buying power, "you'd think they'd be able to keep costs down." (Seattle Times)

Comments

so what? everything else is going up in price too. Is it news worthy everytime gasoline goes up, how about fruit and veggies at the market? Unbelievable $3.29 pound for peaches, I either pay or select a different fruit. I'm still at the same grocery store. People bitch for a few days then get over it. It's just that we, as partners, have to deal directly with the customer at our counter,we are the front line. we sympathize, feel their pain, smile and say how great it was to see you again, hope to see you tomorrow. It's what we do as the service provider to our guest. It's all we can do is continue to provide an uplifting experience each and everytime that valued person opens our doors and walks into our store....by choice. And it is we, the front line partners, that encourage our guest to chose to open our doors each and everyday. all because we provide that feeling of being conected to our guest, and they are our GUEST! Show some compassion, show some respect but above all show some 5 ways of being.....
WELCOMING
CONSIDERATE
KNOWLEDGABLE
GENUINE
INVOLVED
Might be a good idea to take out the "GREEN APRON BOOK" dust it off and give it a quick read it does a soul good!
make a friend, make a difference, make someone's day

[Barista Bryan]

HA HA HA BARISTA BRYAN!! IN YOUR FACE! There, I saved all of you from having to gloat.

[atownsbuxrules]

Wow. Well said, anonymous. Here's to our loyal customers, they've been putting up with a lot these days. I know I love my regulars. Just gotta keep treating them right.

[charleston]

At my store we had people get mad over the our taxes going up so first we got hit with the first price increase, and then taxes going from 8% to 9.5%, which makes us the most costly store to buy a drink from in the area, the rest of the stores taxes range from 7-9%

[JEP]

As a very loyal customer, a price increase is no problem for me. You are worth it! Thanks!

[Pat Nerr]

I hate to say I told you so on the price increase and outsourcing of HR... Let's see if the Pepsi buy out comes true...

Get your pullin' arms ready baristas... it's time for soda jerkin'

[Darleen]

Oh what positive posts! Anonymous, you rock! When I read your post it made me smile and just reinforces the passion I have to wrap myself around the 5 ways of being for myself, my team, and my customers. Thank you for being such a bright light in what could have been a dark room. There's an old Bob Dylan song called "Forever Young" that made me think of what you were saying, May you stay "Forever Passionate" You are a true asset to our company!

Yeah, in my area, our tax is 10.225%, so this is not going to be popular...

[Decaf for EVERYONE!]

every store is going to have their share of bitchy customers regarding the price increase - there is not stopping it.

oh well, sit back - relax ... and CONNECT over how EVERYTHING is going up - first insurance, then gas - now your morning buzzzzzz!

it takes GAS (of some form) to ship those beans from sumatra, ethiopia, colombia and all those other bean boasting nations. USE that as your pawn. trust me, eveyone with an automobile will understand.

also, i think ... agreat opportunity to push the more basic beverages such as our black hot and iced coffee, iced teas and americanos. the flavors are so robust, and pure ... and that WHITE MOCHA is much more expensive.

this takes place the same day as the blueberry launch nationwide.

it is going to be berrylicious.

[medic.al.bariSta.]

bring your own dam cup..the price should even it out...haha..and blueberry frappuccino..
on another note..i swear if we start selling cereal..im out.

[indie2]

To angry customer:

Do you realize your likely still paying well over $4 a day for a luxary caffinated beverage?

Yeah, I can see how 9 cents should be a BIG deal.

[lquisp]

The problem I've found with every price increase thus far (since 1999 when I started) is that each time, our collective tips become smaller so that the customers really aren't paying more... the baristas are actually just getting less. Other than that... I've had hideous customers over many other things, price had nothing to do with it, their personality had everything to do with it.

[seattlesuburb]

I understand why they have to raise prices, but I still dread having to deal w/ the customers that freak out about 9 cents.......and the fact that I had all the prices memorized for the drive thru...that was nice :)

[seattlesuburb]

I understand why they have to raise prices, but I still dread having to deal w/ the customers that freak out about 9 cents.......and the fact that I had all the prices memorized for the drive thru...that was nice :)

Indie2,
Please learn to spell, you are embarassing to us baristas

[PDXBarista]

This is going to be a toughone for sure. I have come to this web-site before to see how news like this is taken and these have been the most positive postings I have seen...on any topic.

I am not excited about telling my customers or my partners about this for sure. This will take every partner Being Legendary to the point of being over the top.

To those that have posted I commend your positive attitude. To those that will post after these messages figure out how to CONTINUE to deliver the legendary expeirence and deliver.

To Howard, Jim D., Jim A., Marty Coles, Launi, Cos LaPorta, and Paul Towhig: in the future inform your front line partners at the same time you tell the press. As of 5pm West Coast time there was nothing on the portal about the price increase and rumors where flying. Treat us as the leaders that you want us to become and that we are. Secondly, what is going to be done FOR the customer? Ideas: The return of the free drink with commuter mug purchase; surprise and delight in Fall and winter promotions; the return of Mocha Mondays; add a complimentary drink to register starbuck card holders; or add shot fridays.

Finally: Starbucks is a great company and I love what I do. When I come to the point where I no longer enjoy what I do or I think the aforementioned partners listen to Wall St more than the partners and customers then it is time to go. We are not there...yet.

[Taylor]

An average of 9 cents? That had better be either 5 or 10 in my area because if I have to start doling out pennies I'm going to be very unhappy.

One regular mentioned hearing about it today but he didn't seem upset by it. I do recall a massive outbreak of complaints during last October's price increase. I simply told them it was supporting our $1-$2 raises in base hourly pay and most customers felt that they would pay it happily if it meant we were taking home more at the end of the week.

This one unfortunately cannot be coupled with that reasoning...so we'll hear plenty of whining. Funny that when other food establishments raise their prices it seems to fade away with not a single issue. I guess Starbucks is supposed to take a hit to appease their "loyal customers" who frequent the stores so often that they notice a few cents difference. Pssh give me back my 99 cent gallon of gas and my $1.50 gallon of milk first...those are things I *have* to pay for.

[Christine]

People who can afford to pay alot for coffee can afford the increase. There will always be a certain segment of society that thinks the more expensive the product, the more elite or upscale it is and will still buy into that. On a personal note, I stopped drinking Starbucks coffee, even home brewed due to constantly getting sick. Maybe I am allergic to something in it or drinking too much in one sitting (12-16 ounces). I still go for the iced teas. Has anyone else had a problem.

[Brooklyn Barista]

Yes, it was in the portal. I don't remember where exactly, but it was there. I just happened to stumble upon it accidentally. I've known about this for about the past week. It even had a Q & A. I hope this translates into a raise even though the Q & A didn't really say much regarding it.

[Lorenzo]

if some dude comes to me complaining about the price increase. i'd simply give him a few locations of cheap-o non-starbucks coffee shops in town. enjoy.

~lor ♥

[Pat Nerr]

Ten cents isn't a big deal. Don't get me wrong. People waste more money for dumber things. It's a perception thing. Perception is everything. For example... Participation rate for the partner markout program is pretty low. They have considered just doing away with it... The overall dollar amount isn't much to the company, but if they took it away, how would you feel?

As far as Starbucks use of the money it gets... Hundreds of thousands have been spent on an Ethnography study of Starbucks customers and partners... It's been going on for a couple of years now. First... any partners heard of it? Second... have you reaped any benefits from it? BTW... 100K+ just recently spent bringing in 60 people from that study for 3 days of fun and activity... that should increase the sales in the stores.

NOW, how does a .10 increase sound?

[sbuxmanager]

For Starbucks to claim that this price increase is about cost of goods is absolutely ludicrous. Look at the last few quarterly earnings reports for the real reason. Profit keeps growing but the statistic that keeps the stock price up is same store sales which have been flat. Starbucks even issued a warning last month saying that they might not even hit the low end of their projections. When we're not attracting new customers and those customers that are coming back aren't buying anymore, the only way to raise same store sales is price increase. Look what happened to the stock yesterday...it was up 50 cents and above 28 for the first time in a while.

[jack]

well some of the pertners i work with are lazy and give the less than bare minimum,to customers, and their co-workers so im sure the price increase wont affect their social hour,

[scottshift]

i think for me there are a few issues..first this is the SECOND increase in one year, the last one being october 06...second for me and my store, we lose money basically from the "just say yes" policy...all of the "can i get xtra xtra xtra xtra carmel sauce cause my ass isnt big enough yet...people.....that sauce is expensive and we dont charge for extra anything, as long as it comes in the drink ..plus "can i get more whip cream"..after they gulped down the standard amount we already put on it..not to mention "doppio in a venti iced cup so i can steal all your half and half"...all im saying is that there is a different way to make up for loss ( maybe less crappy mugs..less promo crap we only end up tossing) than punishing all the customers across the board

[Pat Nerr]

SBUXMANAGER...
No doubt... no doubt

[Kat]

As a customer, I can't say I'm really happy about the increase. Ten cents doesn't seem like much but it does add up, especially where I live, where tax is ten percent. But, having said that, it won't keep me from going to Starbucks when I'm of the mind. Everything is going up horrendously, just a trip to the grocery store causes sticker shock lately, so that ten cents doesn't seem all that bad in comparison. People will complain for a while, but they'll either stop buying, buy less or just keep coming and get used to it. Business will go on.

Please don't blame the cost of gas for the price of your coffee. Gas could be thirty-five cents a gallon and Fivebucks would still be charging an arm and a leg for their product. Do you know how many times I've come to this site and read Starbucks employees complaining about their customers? I even saw one where a guy wanted to throw hot coffee in the customer's face. If that's the service people are paying for when they come to Fivebucks, I think it would be well more worth it to buy Foldgers and do something worth while with the rest. This experience you are talking about is fake more times than not. Just because somebody smiles and tells you to have a great day doesn't mean they mean it. I know; I'm in sales.

"I even saw one where a guy wanted to throw hot coffee in the customer's face."

They wanted to, but probably didn't. Have you also read the many horrendous accounts of partners getting scalding hot lattes thrown at them? Have you been out in society lately and see how shitty some people act in public? If you're genuine with your barista he/she will probably be genuine right back at you.

"Please don't blame the cost of gas for the price of your coffee"

And just how are we supposed to ship the coffee? Gas prices do figure in....

"Do you know how many times I've come to this site and read Starbucks employees complaining about their customers? "

Why do you keep coming back?

"Just because somebody smiles and tells you to have a great day doesn't mean they mean it. I know; I'm in sales"

Just because YOU are FAKE does not mean that baristas are, seems you are the one with the shitty attitude.And its Starbucks, not fivebucks, don't want to pay the 9 cents more, no one will force you to, you do have a choice. Go buy folgers, if you want to drink garbage.

[Sara]

I have not been a Starbucks customer for several years, and it's not because I can't go down the street without tripping over three of them. It's because I can go to 7-11 and get better coffee (with free refills!) for less than a dollar, and more often than not, the cashier actually makes me feel like my business is welcome. It makes me sick that so many sheep- er.. people "flock" to Starbucks daily, some several times a day, only to be charged outrageously inflated prices for mediocre coffee. And now they are hitting their customers with another price increase? I know the appeal of waiting in line, being served by a surly barista with 10 piercings, paying an exorbitant $3-$4 FOR COFFEE, waiting another 10 minutes for your asinine concoction of crap, and then fighting for a chair so you can enjoy the "coffee culture" is hard to resist, but seriously- they charge that much because their customers let them. What kind of idiot would spend that kind of money on coffee? And every day? I will never patronize another Starbucks again, and you can bet me and my 99 cent 7-11 French Roast are laughing at all the geniuses who can't wait to toss their money into the big mouth of Starbucks.

[Barista Bryan]

Sara,
Try pulling up a chair and relaxing in 7-11. See how long they appreciate your business then. They'll probably call the cops and have you committed. Of course, my biggest beef about The Bux is you can't get Mountain Dew there.

[drinkerofshortlattes]

The extra caramel comment cracked me up. We had a lady come in one time who wanted soooo much extra caramel in her drink that she told us to charge her for it! She said she wouldn't have felt right otherwise. It was about an inch of caramel sauce. How would you drink that?!

But on the genuine issue. I am genuine. I hope my customers and partners see me as that. Yes, I will fake smile if I am having a bad day, but that doesn't mean I do not care about you. In fact, it means I care enough not to burden you with the junk that goes on in my life. I just want you to have your third place. So have another for-here cappuccino on me!

[Elizabeth]

On that subject - does anyone here work in a store that has a substantial amount of for-here orders? Of course it can get annoying during a morning rush, but during the slower hours, I take pleasure in giving people a nice-looking drink in a mug. Feels more personal, I guess. But few people even order it that way in our store, unfortunately.

[Zac]

Thanks to the customer who put that they would still keep coming to see us! Its really great! Regardless of your feelings about the price increase theres nothing we can do about it but keep a smile on our face and continue to provide legendary service to our customers.

[drinkerofshortlattes]

If someone orders a pastry for here, we always ask if they want their drink for here as well. And if they have a book or stacks of papers, I always will ask. Often they do not even know that it is an option. I have gotten a couple of customers "trained" to now make it a point to come in 15 minutes earlier and use that time to truly savor their hand crafted beverage in-store instead of sipping a by-then substandard drink all morning. It makes my day!

[Latte Rebel]

As a happy customer, I have no problem with the price increase and believe the partners, product and the company are awesome! I've unfortunately not had a lot of time to drop in and sit at some of my favorite Starbucks locations, but I always receive fantastic service at the drive-thru. Thank you to all my favorite southeast Michigan Starbucks locations, you won't hear me grumbling about the price increase and I'll still leave a nice tip, hehe. Ciao, dollinks!

[Vicki Verona]

I heard Cos Laporta is taking over the SVP position for the Western Division. What is happening to Mark Lindstrom? Is he finally seeing that the coffee business is no where as lucrative as the oil business?

[Vicki Verona]

"bring your own dam cup..the price should even it out...haha..and blueberry frappuccino..
on another note..i swear if we start selling cereal..im out."

Funny you mention that....look at the "TEST" menu on your POS the next time you work.....

[Taylor]

Comparing Starbucks to 7-11 is like comparing McDonalds to TGI Fridays. Of course there is a price difference.

People always complain about our prices, but take a look at some high-end coffee shops in your area. Kellys in LA charges an average of 10 cents more for the same drinks we have. I was in Lake Arrowhead this weekend and a sandwich/coffee shop in the village charges $3.30+ for a single latte. They had nothing on their menu UNDER $3.

Face it, our run-of-the-mill serious coffee drinker drinks range from $1.40 to $3.00. It's the fluffy sugary dessert drinks that cost you more. Go to Baskin Robbins and you'll pay $3-$5 for their desserts as well.

I just find it hypocritical how the conversation about our prices creates such an uproar. Objectively speaking they are no higher or lower than other cafes of the same concept and design. It's just an opportunity for the "I hate trends" crowd to express their rebelliousness.

[Boozer]

"It's not the money so much as the idea of two price increases in a row"

As opposed to what? A price increase, a decrease then another increase? Please get over yourself, Angry Customer. Go to McDonalds, which Consumer Reports rated highly for its coffee, and experience sullen service and aesthetically deadening decor. Drink yourself silly. Now. Go. Please. Be non-angry far, far away from Starbucks, and everyone, including those baristas you surely don't tip, will be much happier.

[Boozer]

"if some dude comes to me complaining about the price increase. i'd simply give him a few locations of cheap-o non-starbucks coffee shops in town."

Exactly. The deli two doors down has some generic, foul 2-hour-old coffee sitting in a suspicious looking glass carafe, and it's only a dollar! Please drink that coffee, Mr. 9-Cent Cheapskate, and pride yourself on knowing the price of everything and the value of nothing.

[jt]

Wow. Boozer. Try to remember that you also work for a fast-food franchise, although one that has the aroma of a slightly upper scale place.

Please get over yourself.

Your job is to make coffee, and get to the next customer in line, all within 30 seconds.

I do not see the McD "partner" begging for tips for frying up your burger. God knows it takes more effort to do that than to press a button on a machine that automatically pour the espresso shots.

No wonder you have problems with tipping, with an attitude like that.

The people that say 7-11 coffee is better than Starbucks coffee are not a true coffee drinker.
7-11 coffee is like drinking boxed wine(gross). The price increase is due to everthing going up freight changes, rent, wage, milk(7% increase in one month), gas & electric, etc. Everyone needs just look at their own expenses and you can see "prices are going up" utility bill, food bill, insurance, gas pump, even stamps.. Come on people its not just Starbucks it EVERYTHING!!!!

[Canadian SM]

I have not heard anything about this increase, It is crazy that even us store managers are out of the loop with something as important as this. I have a new store that is already struggling to get customers to pay the $2 when there is a Tim Hortons right around the corner. Plus for everyone complaining about there state taxes. ours here is 14%

[atownsbuxrules]

Um... since when are any baristas allowed "ten piercings"? Maybe you weren't at a Starbucks at all, folgers drinker. Maybe, I dare say, you're full of crap.
Why read Starbucks Gossip if you haven't been a customer at all in several years?
It's like stalking your ex on myspace. Something must be missing. The chemical after-taste just isn't the same, is it? ;)
7-11, now that's classy. It's like dumping Catherine Zeta Jones for Britney Spears. Yum.

[bucksguy]

VickyV- Mark Lindstrom is promoting-there was a press release about executive realignment last week. It's on the first page of the portal. Jim Alling is promoting, too. Yayyyyy! The stock price started rising right after the announcement.

[Pat Nerr]

I wonder why the press releases of leadership re-alignment come before the company announcement? I wonder if this has to do with the Partner view scores being poor in the "communications" category?

Do you have a best friend at work?

Everyone knows that Canadas sale tax is much higher becauce you have much lower or no local, state, Medicare, disability, federal taxes. If Canadians pay 23.7% per paycheck on just taxes than 7.5% for sales tax than pay 3.7% on their familys health insurance and than $7000 per year for property tax than maybe you can complain about 14% sales tax. And yes these are the taxes you would pay if you live and own a home in California!!!!

[Mutable Barista]

Dang! I was just starting to have all the prices memorized after last October's increase... :(

So I guess this means that a venti RMF will be $5.01 (with my area's 5.6% sales tax). So at long last, we really do have the "$5 cup of coffee omg" that people keep joking about.

[Joe O.]

SBUXmanager and Pat Nerr...

I'm not sure where you get your financial information from but Starbucks has had 61 straight quarters (or 15 years) of positive same store sales growth. Flat would mean zero same store sales growth. Here is the chart:
http://media.corporate-ir.net/media_files/irol/99/99518/fin_highlights/Q207/Comparable_Store_Sales_At_a_Glance_061907.pdf

What DOES have investors concerned, and rightly so, is the leveling out of transaction growth. This is something that Jim Donald has had to address in at least one of the last few quarterly financial conference calls.

As a general rule, what price increases do is increase guest check averages which help ward off the effects of stagnant transaction growth while helping preserve the record of positive sales growth. This is not necessarily an immediate fix because there is almost always a small drop in transactions which accompany price increases. The idea is to weather the drop and, when customers finally get used to the higher price and come back, Starbucks' top line benefits.

In addition, price increases DO help relieve pressure on margins which will help Starbucks meet their profit guidance.

And, Pat, you're barking up the wrong tree with your insinuation that the expense of proceeding with the Ethnography study (whatever that is)is wasteful. The willingness of Starbucks to jettison the Costa Rica trip at the beginning of the calendar year demonstrates a rigid adherence to fiscal probity that other companies would do well to emulate.

[DT]

surprising to me that investors don't discount the effect of the average check increase due to a price increase. Since it's not any sign of the company being particularly strong, and indeed could even be seen as a sign of weakness.

[Danielle]

when I first started at sbux, we were selling cereal. We had to pack it ourselves, in small plastic containers. Really, no biggie. We have everything else...

[Ben]

"Everyone knows that Canadas sale tax is much higher becauce you have much lower or no local, state, Medicare, disability, federal taxes....

I don't Even know how to read that. All I know is I live in Canada and pay 13% Sales Tax, 47% Income Tax plus I also have deductions for Uinsurance, Extended Health, The National Pension Plan. Also in addition to taxes many products from paint to tape to televisions and computers also have environmental levees charged too. You are correct however that we have no State taxes... BECAUSE WE DONT HAVE STATES!

[Canadian SM]

Ben your right! when I look at our income tax it is crazy. I don't know where he got his information but he doesn't have it right! almost half of our income is taxed. and we don't get it back at the end of the year.

[Pat Nerr]

Joe...
Glad you brought up the Costa Rica trip... That was cleverly disquised as "we're giving them pay raises instead"... they were going to do that anyway. I know because I was there. It was because they continued to spend at the planned rate with no consciousness of sales behind plan until it was too late. You should see the figure of how much was actually spent already on the Costa Rica trip before it was called off. I think you'd be surprised.

and yes you're right, they still have positive comps... the days of double digits are gone though.

[Tall Drip]

All I can say is that the day a tall drip/regular coffee becomes $2.00 will be a sad day indeed. That day will come soon enough, if it's not already here in some markets. That will be the day my frequency of SBUX patronage takes a significant decline. Have to draw a line in the sand somewhere.

[Andybarista]

our venti will be $2+ in philly, with i guess a $1.96 grande, and a $1.74 tall.

[Curious]

Well, considering that Howard Schultz (chairman of Starbucks) entered the billionaire club in 2006, I would say that Starbucks is doing okay without raising their prices. Moreover, to the people that use gas and food cost increases as an excuse, they also fluctuate back down sometimes. Does that happen with Starbucks' drinks? Nope.....
I wish I wasn't hooked on Star's chai's but I have significantly decreased my Starbucks visits from about 4/wk to no more than 1 thanks to the last increase. Hopefully people will realize that they can get a good meal for the price of the latte soon or will it take a downturn in our economy before people start cutting out their Starbucks?

[jack]

well i know a way we can keep the cost down, when a customer comes up to the window to pay after ordering there drink in the drive thru board , only then to say "oh i wanted that iced, now thier original drink has to be thrown away, all the milk, coffee,and syrup that has been put into it, we should just charge them for the second drink we have to make, the customers forget that with our "just say yes" policy, we finacially eat THEIR, errors all the time without question

[Joe O.]

Pat,

The amount of money Starbucks spent setting up the Costa Rica trip wouldn't surprise me at all. It was a huge undertaking and required a heck of a lot of advance planning/spending. Most companies would have said, hell, we've already spent this much, we may as well finish the trip. Starbucks had the discipline to cut their losses.

I'm sorry to be argumentative however you dont take such a step because your SALES are behind plan - you can't recoup lost sales by cutting a cost. They did it because their profits were behind plan which were certainly indirectly because of the lagging sales.

In my opinion, Starbuck's biggest mistake was allowing themselves to become beholden to the "street". This company is a perfect example of what happens when you establish a track record of stellar comps and margins based on explosive growth. At some point, the comps and margins will be weighed down by sheer size yet the "street" refuses to extend grace for that eventuality. Therefore, the company is under enormous pressure to maintain past performance and, when they don't, you see the kind of stock performance that currently exists.

I firmly believe the reason Jim and Howard keep talking about having 40,000 stores at some point is because it extends the endpoint of all of this well into the future. At some point, the growth is going to have to slow down. And, if Starbucks doesn't have some dynamic strategies in place at that time to maintain the comps and margins, there's gonna be a beat down, the likes of which you've never seen before.

I believe this is why they're exploring rev opps such as Hear Music and an increased food presence NOW. So that when the time comes for the growth to do its natural thing and slow way down, there'll be something else already in place to keep the engine running.

[Pat Nerr]

Joe... I think we're on a similar page. My biggest beef really is that Starbucks has lost sight of taking care of partners, listening, developing their people... TRAINING. I'm sure you're aware that there is NO specific training for front line folks on sales or customer service. It's all peppered in disparate format in other poorly designed and implemented fashion. Now before every barista and their brother jumps on and says "I got great training!" I'm sure you did... but it's not consistent. There are still field folks using materials from 2002.

How can you grow sales when you don't communicate the way you want it done or any expectations? It's just throw some products out there and hope to hell saying "ok... suggestive sell every customer" works.

I'm sure there are alot of good coaches out there... but then there are 14,000 stores. I'm pretty sure decentralizing training of key things in such a fast growing environment isn't working.

[brokenbarista]

New "Guiding Principles"...

1. Profits are everything
2. Protect the environment unless doing so has a negegative impact on profits
3. Embrace diversity because doing so increases profits
4. Purchase the best coffee in the world so we can charge more money
5. Create a work environment that fosters fear and resentment
6. Increase profits by increasing prices. The addicts won't care. If we brew it, they will come

[Pat Nerr]

you forgot #7... Get while the gettin's good

[beeatriz]

i agree with training not being enough as far as sales and customer service go. i dont think the few blocks they get are enough. they are trying to memorize too much in a short period of time. non coverage time often does not end up being enough to have several one on one development time - especially in a busy store with so many other things to manage. it would be nice if after 3 months on the job they could have more advanced training time once the task basics are nailed down. trying to give feedback regularly is very difficult in the pace we work in.
i went to a seattles best this morning, and it was pleasant. i noticed crumbs on the condiment bar - no spins - people in converse all star shoes (employees) a lightbulb out and no sign on one pastry. i was thinking about a day at starbucks and how if i walked in the store - thats all i can see. "fix it fix it fix it" would be on my mind and that would be the priority. i feel that we get clouded with these things being so important all of the time. yes they matter - but are we so worried about these things - that the atmosphere becomes comprimised. i had to ignore the details and just say "yes this is a nice coffee shop with nice customer service."
i often feel like we get those few seconds between customers and we are taking care more of the details than each others development. any feedback on this? or a different way of seeing it?
is customer voice going to launch anytime?

To the person who asked me why I keep coming to this website - I keep coming because I like to read about baristas talking crap about their customers and complaining because the customers don't want to enjoy the two increases FIVEBUCKS has implemented in less than a year. It fuels the fire. Also, I believe that the customers who are okay with the increase - as well as the employees selling the product - are buying into the name. People talk about how it's the best coffee. It's the most popular. I can get some Blue Mountain that tastes much better than FIVEBUCKS coffee. I prefer not to buy the name - I prefer to buy the coffee. I don't want an "experience" either. I want coffee. I want the person to get my coffee and I'll give them the money and they say have a nice day and I say you too. I don't want the barista to bend over thinking she'll get a tip out of it. I don't want to sit in a chair and read Harpers. I want my coffee. Now, I can do this many, many places for much less than what Fivebucks charges. I have a right to an opinion just like the Fivebucks puppets who talk about how great the "experience" is. I see more employees speaking of this "experience" than I do customers. If you don't like my opinion, sorry - but I am going to continue to come to this site and loathe the corporate puppet/yuppies that think that Jesus was born in a manger at Starbucks...I mean Fivebucks.

[atownsbuxrules]

What does "fivebucks" even mean?
Five bucks for coffee? That doesn't make sense, considering our brewed coffee, even with the increase, isn't much more than $2 for 20 ounces.
Five bucks.
Star isn't a number, five isn't a logical play on words.
...I really don't get what you're getting at. And you're so bitter about it, too. You really have nothing better to direct your animosity towards? You are actively hating a company, for some reason that doesn't make much sense.
I could see if Starbucks killed your father or something, but seriously, it's just coffee. What's your deal?

To the person using the "fivebucks" term, you are sooooo obnoxious! My thought is that you probably tried to get hired and they wouldn't hire you, hahahahaha. Can you say LOSER?????

might have been addressed already but here's a couple thoughts. The $0.09 increase is 10 months after the last price increase. Somebody tell me when the last time gas stayed at a lower price for more than ten days.
also, the increase covers nothing more than the cost of dairy which has gone up 70% in the last year. that's it. there's no extra profit...no extra wage increase...its just the cost of milk.
For those complaining about not getting info on the portal, the news was released to Starbucks employees on Saturday. I read the info myself. If you didn't know about it, I'd suggest talking to your manager about better communication.

oh, and on the training thing--to all the baristas, several fellow learning coaches and myself are wanting to work on pushing Starbucks to pay a higher wage to LCs when we are actually training someone. We think the added incentive of extra pay might help training improve slightly.

[Darleen]

Joe...
Glad you brought up the Costa Rica trip... That was cleverly disquised as "we're giving them pay raises instead"... they were going to do that anyway. I know because I was there

Pat Nerr, I am really trying to keep an open mind and I totally understand that you are trying to move past starbucks, however coming on this site everyday in my opinion is not allowing you to move forward. I am also getting tired of hearing bad things about the company from you. You no longer work there,and maybe there is some bitterness, I get that. You do not have to enlighten me on the costa rica trip or anything else for that matter. You say you want to move on and rid yourself of the memories, I know I am not quoting you exactly, that was the gist of it that I interpreted yet you come on this site day after day and speak ill of the company, that bothers me. I take pride in this company, they may not do everything right, but I think they try to. This is not an attack on you, rather a request that you try to keep some of their secrets, you were loyal once and I would like our partners to still believe in the company they work for. What pleasure do you get from telling everyone that the trip was called off not to give partners a pay increase? Do you understand what I am saying? It is not your mission in life to "show us the light" so to speak.

[Darleen]

Hopefully people will realize that they can get a good meal for the price of the latte

Curious, are you kidding me? Where on this planet can someone get a good meal for the price of a latte? When I think of a good meal I'm thinking 20 bucks easy, when please tell me did our latte prices go up to $20? I think some of you guys are so over the top here it is amusing, or should I say sickening?????

[Pat Nerr]

Darleen I hope you'll see another side to all of this. For years I managed Orientation for partners. For years I preached that when they saw an inconsistency in the company's actions and the guiding principles that they have a duty to surface those concerns. You may not see these things at the store level because your day to day lives with the partners and the customers. You should be concerned that key partners behind the scenes are leaving en mass. Howard's words "Success is not an entitlement... you have to earn it every day." Well... that hasn't been happening as you're just starting to see the initial effects. Starbucks is growing too fast and Store Development, Operations, Training are all suffering. You can't see that because of where you sit. Just like I can't see your experience.

Christine Day is a good example... she headed up China... Because they wanted to grow that market so quickly and had unrealistic margin expectations... she just up and quit after 26+ years... surely you can see something is happening.

There's no pleasure on my end of the keyboard. This is simply a message for you to start ringing up Jim Donald and start getting some answers.

If you go read the stories, I think you'll see a different side to Pat Nerr that you don't see here. Oh... and BTW.. the fella that did all of the work for Costa Rica... 16 year partner... gave notice yesterday.

[Darleen]

Pat Nerr,
I feel like you did not read my post at all. I did not say that these things were not happening, I just do not understand why it is your position now to expose it all. What does that do for you? You have appointed yourself judge and jury in my opinion. There is nothing wrong with you starting your website to enlighten people, if they seek to be enlightened. However to come on a gossip site and tell all the partners that the company is not what they think it to be is shameful. You can disagree with me and tell yourself that you have an obligation to point these things out, but you don't. You have a choice, and you choose to say these things. I just find it all very disheartening.You say Patt Nerr is a message board for partners to start ringing up Jim Donald, so why not leave it there? Why keep coming here to spread that? You have your forum, that is where I think it should stay, and that is why I think you are getting some kind of pleasure from it. You are most likely a warm, friendly guy, who I have no animosity towards, I just think your tactics are wrong.

[Pat Nerr]

We'll just have to agree to disagree. That's the beauty of the American Web. I'm sorry you're ashamed... I'm not. The only shame lies with folks who have something to be ashamed about. Would you ask a customer to leave your store if they had the same opinions as I?

Perhaps you have some suggestions just on what should go on a GOSSIP blog?

[Therealrevolution]

Here is my suggestion for all partners who work for Sbux- when you pull away all of the (incorrect) details that Pat Nerr is providing, ultimately it sounds like he/she couldn't deal with change. The sooner you learn the lesson that nothing in life will stay constant, the sooner you will be successful. Over and over I hear people living in this nostalgia of "the way it used to be". I get it. I do. However, while we can smile at the fond memories, there are memories that we can be creating here. Now. with your current partners. Perspective can be a tricky thing. You will surely live your life dissapointed, if you focus only on the fact that things change. It's simply a fact of life- neither good or bad. Just different. And we can continue to live the green apron principles, and we can continue to work against the competing priorities- it just depends on your level of perseverence. I think this is an exciting time to be at Starbucks. Truly.

[Pat Nerr]

Thanks Jim D... Now does this apply to Howard's letter that was "accidentally" leaked here on Starbucks Gossip as well? Or does that call to action about losing the culture of the company fall under another banner? You Pat Nerr opponents slay me... it's not about resisting change... it's about ensuring the right change happens using the guiding principles to guide your actions and decisions.

This isn't a grocery chain Jimbo..

[NewShift]

To the Fivebucks guy=

I'm glad you found some coffee you enjoy. That's why we're here too. I don't expect everyone to like Starbucks coffee, and I don't expect everyone to like 7-11 coffee.

That's pretty much it. Note how I'm not spewing anger at people I don't know. Try it.

And remind yourself how lucky you are to have a place nearby with coffee you enjoy; the nearest 7-11 to my apartment is almost six miles away. The cost of gas to get there would make it more expensive than Starbucks coffee anyway, but I guess that's not the point. The point is 7-11 has never and will never raise their prices. Ever. Nope. Not even in 2093 when we eliminate the dollar bill as worthless currency, they'll still be breaking 20s for their 99-cent coffee (unless, of course, since nobody will know what a cent is, people think it's the Euro symbol and walk out of there complaining about how expensive the coffee has gotten).

I'm tired. Tired of closed people. On the plus side, my DM invited me to her office today on my day off, just to see how things were going, see what I thought we could do some work on in our district. She even charged my store for the two hours I was there, and I got to eat some food that a potential supplier delivered as samples to the regional food operations team.

By the way, did you know DMs don't have lush, leather-appointed offices with views of the city fifty stories below them? They have cubicles. Hell, not even that. The have desks with partitions between them.

And isn't Howard making most of his money on stock options and such, not directly on the profits Starbucks makes? Could be wrong on that.

And Darleen-

Don't worry about Nerr. Neither this site nor his is widely viewed enough to really impact anything for long. Let him vent in his own way. I agree with you, but we must be gracious enough to step down sometimes, too. You are a wonderful part of this web community, and your word holds much more weight in my mind, at least. Keep on with your good work; I am sure your store and community appreciate you as well.

Peace out, all, and my apologies for being so rare in my appearances lately. It's been a trying time for my wife and I (surgeries, moving, promotions, deaths, financial stress, you name it).

Cheers.

[20secondshotguy]

Geez Pat. There aren't any Pat Nerr opponents... We're just hoping for more, for different, for better.

Sage wisdom? I don't know. That'd be too much to ask of anyone.

But right now most of what you're dishing are notes from a bitter bean, trying to rile folks up just like the wobblies who spam this blog from time to time. In the end not much good comes from that.

I bet you were once was passionate about the apron and everything it stands for. Can you show us more of that side of you? It's not coming through. Here or on your web site.

"Green Apron Stories" could be this amazing place of conversation and connection. It's not, yet. What'd'ya say?

[Darleen]

Newshift -
Welcome back! I'm sorry you have had such a trying time lately, hope all is well!! Thank you for your kind words, I know you're right that I need to step back and let Patt Nerr vent. I shouldn't let it get to me. You may not know how hard that will be though, hehehe. I will try to bite my tongue going forward. I have nothing against Patt Nerr, he's probably an awesome guy. I just wish he'd keep his posts on his own website. Anyway, good luck to you and hope we connect again soon!
Cheers!

[Pat Nerr]

You guys might be right... 20secondshot guy... e-mail me your thoughts to get it there.

[a.]

i'm a daily starbucks consumer. i love my baristas, i try to tip at least a $1 on my $4.61 drink every morning when i can. nine cents isn't that much on top of what i'm already paying in the grand scheme of things.
but it's starting to eat away at me that i'm paying more for my triple tall latte than i would for a triple grande latte - there's less milk in my tall (which is the reason i get the tall), but the same amount of espresso. i don't exactly make a lot of money - my morning starbucks is my one extravagance and gets me through the morning. it's not the nine cent price increase that's going to push me to another cafe near my office, it's the weird price structuring.

[Pat Nerr]

alright 20SecShotGuy... I think I have a winner of a Green Apron Story for you tomorrow. I will touch on all of the Green Apron behaviors... follow the mission statement... it will Connect, Discover, Respond... It'll have something for the Servant Leader as well as the Situational Leader. It will follow all of the drink standards and be about coffee.

[Joe O.]

newshift...

I'm sure your store manager really appreciated having the two extra hours charged to their store.

[Joe O.]

newshift...

I'm sure your store manager really appreciated having the two extra hours charged to their store.

[Canadian SM]

Ok, I found out why I did not hear about this! it is not happening in Canada, and it was not on our portal. one of the DM's here did forward a memo about it to their district, but my DM did not. I just wish they made it clear to us Canadian Partners what was happening too. because we in Canada hear on the news about everything going on, and our customers think if it happens in the USA it is happening in Canada. Just very frustrating when you don't know what to tell your customers and even partners.

I'm glad I annoy some of you and no, I've never applied for work at a Fivebucks because I'm afraid it would turn me into a mocha shizzle scemtada or whatever your company calls coffee. By the way, we don't have 7-11
convenience stores where I live and if there were, I'd be totally happy getting my own coffee instead of having some 38 year old wants to date his 16 year old co-worker pouring it for me. Have a wonderful day!

[Elizabeth]

A. - you might ask your barista for a "triple grande latte, in a tall cup." That might get the hint across. Technically, you should be charged for a triple tall, but I would never begrudge any customer - especially a regular - the difference.

Better yet, ask for a triple grande latte with two inches of room.

You are right, though. It is unfortunate that the pricing structure is the way it is. The baristas making your drink are probably thinking the same thing.

[sbuxnewbie]

Newshift- Your DM has an Office??

The DMs in my district and the adjoining district work out of their homes.

Of course, we're kinda small... Only 15 stores between the two districts...

so far. At least 3 more planned for the coming year.

[NewShift]

Joe O.-

She did appreciate it, actually. She's been strugglign to find me hours since we were given a fourth shift supervisor, and has been actively working with other managers in our district to get me shifts. So this saved her a bit of trouble.

Cheers!

[NewShift]

Sbuxnewbie-

I work in the Portland, OR area, which is one of Starbucks' first large markets outside of Seattle. They've had quite a bit of office space here for a while.

And my DM only spends about a dozen hours a week at her office. The rest is spent on the road or working from home.

Enjoy your scemtada!

[Joe O.]

Newshift,

What I meant was Im sure she appreciated being charged two extra hours for labor on her P&L that she hadn't planned for. It's one thing to find shifts for you at another store - those hours wouldn't be charged to her store. Whereas these two hours were charged to her store but she didnt get the benefit of your labor. If she had the extra hours laying around, she would have already given them to you.

[PDX Barista]

So many things to say...

1) Christine Day was "encouraged" to step down b/c China fell short of expectations. "Prove yourself daily"

2) Mark Lindstrom is in some B/S support position with one person reporting to him. Watch for his announcement that he is leaving due to retirement or just exploring other opportunities. Cos has been brought in with Launi to tighten up operations in the South/Southwest of the division.

PAT NEARN any information??

3) Regarding paying learning coaches more. I think training should be done by the S/S and supported by the other baristas. Here in Portland, OR our LC are S/S not baristas. Maybe that is why training in lousy in other areas?? Or maybe it has to do with managers not properly planning b/c...they do not have time, know how, or unsupported by their DMs.

Where did MBDD go anyway??

@BEEATRIZ:
4) Starbucks is/has been/will always be about the details. That is what makes the "consistency". If partners want to be developed then take care of the flippin' job in front of them. If your ready for the next job, why do the SMs have to ask them to slide, to do the duty roster, to coach their peers, and deliver legendary service? Puh-leez!! When you are doing what your current job entails, modeling it to your peers, and coaching your peers, then seek out the next job. Be prepared to be pushed further.

We want a better Starbucks? Then raise up your voice by going to the shareholders meeting, to open forums, to round tables with your RDO, call your SVP directly and have coffee. I am sure that if enough people called Gina M, Weldon S, Joe D, Jim McDermott, they would have a sit down.

If all that is going to happen is people taking pot shots here and not say anything then shame on us all.

[NewShift]

Joe O.-

Clearly there's some confusion here. I don't know how things work around your area, but there is communication here. It's not like my DM called up my manager after our meeting and said, "Oh, by the way, I'm charging you two hours of labor today. Goodbye!" My DM had asked my manager a week ago if she could have me come in on a day I wasn't scheduled in the store. And since one of the things we've been getting pissed on by the DM is the fact we only use 70% of our alloted non-coverage labor, this is pretty much a good thing for everyone. There was no sneaking around, no lying, no miscommunication, no conspiracy of any kind. So why not just smile and say, "Well done, Starbucks, for making use of time and money to try to continue in your growth as a company, even on a personal level." There's no need to be frumpy. Really.

Cheers from Twelvebucks!

[NewShift]

Cheers to PDX Barista! What part of town are you in?

[Joe O.]

Well done, Starbucks, for making use of time and money to try to continue in your growth as a company, even on a personal level!

Well, an advance thank you to Starbucks for the increase in business we'll see in my store. During the last 16 months, 3 new Starbucks have opened within one half of a mile from each other, all on the same street. In a 3 mile area there are no less than 7 Starbucks. This isn't in a high density population area, just an average suburb.

I worked at Sbux for over a year. Left when I was stuck with a three times trained idiot that neglected to tell me we were out of grande cups until we totally ran out during a rush, but of course, it was my fault for not knowing how much of every product we had on hand.

I know work for a coffee shop that focuses on GASP- coffee and loose leaf tea. We only keep our beans (loose) for 10 days. Not on the shelf for six months. Our company is posting steady growth in profits, controlling expansion to not oversaturate markets, and spares no $$ for quality products. No one in our company is griping about the cost of milk, or fuel- and no price increases in over a year. (not to say that we won't have to in the future)

Sbux has become a laughingstock in the coffee business. They are nothing more now than a fast food joint.

It's really too bad, they pionered coffe in the US as we know it.

Well, an advance thank you to Starbucks for the increase in business we'll see in my store. During the last 16 months, 3 new Starbucks have opened within one half of a mile from each other, all on the same street. In a 3 mile area there are no less than 7 Starbucks. This isn't in a high density population area, just an average suburb.

I worked at Sbux for over a year. Left when I was stuck with a three times trained idiot that neglected to tell me we were out of grande cups until we totally ran out during a rush, but of course, it was my fault for not knowing how much of every product we had on hand.

I know work for a coffee shop that focuses on GASP- coffee and loose leaf tea. We only keep our beans (loose) for 10 days. Not on the shelf for six months. Our company is posting steady growth in profits, controlling expansion to not oversaturate markets, and spares no $$ for quality products. No one in our company is griping about the cost of milk, or fuel- and no price increases in over a year. (not to say that we won't have to in the future)

Sbux has become a laughingstock in the coffee business. They are nothing more now than a fast food joint.

It's really too bad, they pionered coffe in the US as we know it.

[barista lane]

yesterday my ASM told me that our espresso based bevs are going up 25 cents! i can't believe that. i'm in the LA market, does anyone know if that number is accurate?

[PDX Barista]

@ Newshift

I am Everywhere in the greater portland market.

__________________________

"Starbucks has become the laughingstock of the coffee business"?

You really do not believe that do you? With what we have done to blaze a path for hundreds of other coffee shops in the world, how we have brought coffee practices to the masses, etc. If anything we have set up the independents, Peete's, Coffee Bean and Tea for opportunities to offer better education in coffee.

To those companies I say, capitalize on our shortfall with regards to increasing customer knowledge about coffee. This is where our efforts are laughable.

Last time I checked on my store it did say Starbucks Coffee, not Starbucks Blended Beverage.

[Inquisitive]

Alot of people seemed "miffed" at/by "Pat Nerr." And magically comments he's made have disappeared from the website on multiple occassions. Meanwhile, I'm wondering who Rob Anderson is? That's who his website is registered to. Rob@PSBRACING.com, which -for the record- is Pugent Sound Racing. Anyone? Bueller? Pat?

[Pat Nerr]

perhaps a ghost writer os some sort... or the organizer of a compilation of stories and experiences.

Nice work using the basic WHOIS function though...

[Sbuxnewbie]

One of our customers came in during the week and asked if we knew that the Dunkin Donuts next door had raised their prices the prior week.

How odd it seems, that all of the griping I read in the newspapers and on-line about the Starbucks price increase fails to mention any other businesses.

[Flysilly83]

I read quite a few of these comments from up above. The one I liked is when a guest (remember,they are partners too!) stood up for us baristas. Thank you so much for the support!I love to give and make my Starbucks a wonderful third place. Pay it forward. Cuz I just got some back! Thanks again!

[Jon_B]

As a customer, here is how the price increase will affect me. I rarely get anything other than bold drip (or sometimes iced drip) anymore (since the espresso I've gotten is watery, but I digress). I usually get a venti becuase it's not much more than a grande, but if the increase bumps the venti over $2, I will probably start getting grandes, just so I don't break that $2 barrier.

Also, for the people that tip the coins they get back, your tips are going to be 9 cents less...

[ange]

What's the difference what the price is? 2 bucks, 5 bucks, it is all about the choice. If a customer chooses to spend 5 bucks for a white mocha, that is their choice. Our job is just to make their experience a good one, and thank them for coming in. Complaining about the price of coffee is silly, it doesn't matter what it cost, we all spend money on over priced items, so be it, if it is for a white mocha, that is what we work for, to spend our money on whatever we want.

[Ty]

If you take a look at Starbucks in Ontario now they have REMOVED ALL US and Canadian Pricing on their merchandise. It has been replaced with ONE PRICE. This NEW price does not reflect the fact that our dollar is at par or better then the US Dollar. So we here in Canada are being charged more for the same product. This is a complete RIP OFF!!!!!!!!!!