Providing free wireless Internet so customers can buy things from Starbucks online makes sense as a sustainable revenue mode, writes Mike Elgan. "The other reason Starbucks wants its wi-fi to be free is that competitors are starting to do it. ...By making wi-fi free, Starbucks will be able to counter the lure of free wi-fi at McDonald's and not miss out on the real money -- the sale of coffee." (ComputerWorld)
I don't see a compelling argument, yet, for Starbucks to have free wifi (which isn't to say I wouldn't like it to happen). I'm sure Starbucks makes money from business people using their wifi network, especially business travelers. There's quite a bit of value to being able to get on a secure network nationwide.
Unless Starbucks starts losing money, I don't see how getting more people to come in and sit several hours using free wifi is going to help. Most customers come and go. A lot of other customers stay for conversation or meetings. Places like McDonald's have had to raise the stakes in order to be competitive in the first place.
Wifi at Starbucks may be free eventually, but I don't think it's a given within a year. That's the least of their problems...
Posted by: Seth Daire | October 11, 2007 at 11:13 AM
"competitors are STARTING to do it"....there has been free WIFI on every other corner for quite a while now...not sure why SBUX hasn't made the change..unless they just don't want the cafes and parking lots overflowing w/web surfers..which is bound to happen.
Posted by: TN Barista | October 11, 2007 at 11:32 AM
This might be off topic, but fine it is. I have a question concerning dress code at Starbucks. I live in a cold climate and was wondering if it is permissible for baristas to wear turleneck and mock neck to work? I would rather wear these instead of the required polo shirt although wearing a rugby shirt is always an option that I would like to enjoy. Thanks for your help.
Posted by: | October 11, 2007 at 11:59 AM
>>> just don't want the cafes and parking lots overflowing w/web surfers..which is bound to happen.
No it won't. It's not happening at the thousands of coffeehouses that currently offer free wi-fi; why would it happen at Starbucks? If anything, it will *never* happen at Starbucks because it's so late to the game.
Posted by: Jim Romenesko | October 11, 2007 at 12:02 PM
I don't know because I haven't been inside a McDonald's in a year, but are people really in there working on their laptops? It seems to me like this is more popular at Starbucks, even with the price of the wi-fi.
Posted by: Jacob | October 11, 2007 at 12:37 PM
About the dress code...
It is permissable to wear a turtleneck in colder weather. You are also allowed to wear a button up sweater or sweatshirt if it is free of any patterns and is either black or white.
Hope that helps some.
Posted by: | October 11, 2007 at 01:02 PM
I hope this happens. I get really tired of hearing people complain when they find out it isn't free. It would eliminate a ton of hassle.
Posted by: | October 11, 2007 at 01:49 PM
I find it entertaining how folks speak about something they think they know about.
Seth et al, Starbucks doesn't make a dime off of the access fee's T-Mbile does. Starbucks locations are merely the access points for the service. Your monthly fee's go to T-Mobile exclusively.
I've mentioned this here before and I find it remarkable why it is so hard to understand.
Posted by: | October 11, 2007 at 02:10 PM
anyone know if Starbucks even sells coffee anymore?? Can any of you partners confirm that they have even touched a coffee bean in the last 3 months?
Posted by: Pat Nerr | October 11, 2007 at 03:19 PM
Seeing how so many (business) people subscribe to the T-Mobile HotSpot service and they know that they can go to Starbucks and get a reliable connection, I do not look for Starbucks to stop offering this service.
It seems likely to me that they will continue to offer the HotSpot service AND have a free wifi network that allows customers who don't have the HotSpot service to surf free for an hour and then they have to pay.
That is, until the contract is up with T-Mobile, then I think Starbucks will go all free wifi.
The wifi's already there, so it wouldn't be that hard to give out free access to it...
Posted by: baroosta | October 11, 2007 at 03:30 PM
Hi Pat. I just had a few Espresso Roast Beans for dinner :-) yummy! They are also really good covered in caramel sauce...
Posted by: touched a bean | October 11, 2007 at 03:36 PM
We still do coffee tasting about once a day so we can share our passion of coffee with our customers. Its really easy to make a coffee press while you warm a sandwich.
Posted by: | October 11, 2007 at 04:04 PM
A coffee tasting once a day... hmmm... sounds passionate. Who gets delegated that task?
please be aware that I was being sarcastic too... Coffee Tastings should never be treated as the 10-minute timer... or part of the daypart checklist.
Posted by: Pat Nerr | October 11, 2007 at 04:25 PM
ouch, pat! so bitter ;) i was recently appalled to find out we have baristas at the store for over a year that haven't completed their passports. not everyone the bux hires can be passionate about the beans, i guess. (and boo to that).
wi-fi free within the year would make our starbuck patrons happier (and my manager, as i usually let folks know they can get free wi-fi down the street at um, the locally owned java place).
Posted by: burnt bean | October 11, 2007 at 04:45 PM
Baroosta,
The wifi is only there because T-mobile put it there. T-mobile invested all of the capital for the hardware (hence one of the reasons Starbucks makes no money from the service) and if the contract does go away someday......so will all the hardware.
Starbucks would need to come up with a whole new business model for this either through a different partnership or invest in the capital themselves. Either way to offer it at no charge to customers would be a significant venture.
Note I refrain from using the word free......in the world if wifi there is no such thing. It costs money for all of the hardware, maintenance and bandwith to offer wifi service. Just beacuse it is available at no cost to you directly doesn't mean you aren't paying for it somewhere, somehow.
Posted by: | October 11, 2007 at 04:47 PM
*FLASH MESSAGE*
A few Starbucks here in Boston, high-volume ones, have been experiencing a shortage of soy in their store. Is this only in Boston or does this seem to be a Regional problem? If somebody could please help, it would be greatly appreciated.
*FLASH MESSAGE*
Posted by: BOSTON STARBUCKS REBEL | October 11, 2007 at 05:10 PM
when will the tmoble contract expire?
as for tmobile ripping out the hardware when the contract expires... never going to happen.
think about it...
Posted by: | October 11, 2007 at 05:13 PM
Hey, Pat, I touch 'em every day. But then I'm not a retail partner, but rather a technician. And I drink it all my stores as well. Part of the job ;-)
Back to the topic at hand, if tips have been beaten to death, this is the topic holding the bludgeon, eh? I'll go slam my fingers in the door a few times while you all continue this discussion.
Posted by: E-Tech guy | October 11, 2007 at 05:39 PM
This up here ^ should be read with a grain of salt. Or at least a ground of coffee. I'm not being mean to Mr. Nerr. He often makes good, if uncomfortable points.
Posted by: E-Tech Guy | October 11, 2007 at 05:42 PM
BSR: every store runs out of soy at least once a month. Seems to happen everywhere.
Posted by: Tim | October 11, 2007 at 06:30 PM
This should have been done long ago. I am so sick of going to Panera I could scream. I use my cell phone wireless card when I go to Starbucks. That way I can still enjoy the coffee and atmosphere but don't have to pay for T-mobile.
Posted by: MyStarbucks | October 11, 2007 at 06:31 PM
I would argue to go to free wi-fi with purchase- I think it's a win-win, so we keep the freeloaders out, but keep our valued customers in.
Posted by: | October 11, 2007 at 06:46 PM
I would argue to go to free wi-fi with purchase- I think it's a win-win, so we keep the freeloaders out, but keep our valued customers in.
Posted by: | October 11, 2007 at 06:46 PM
great idea... receipt prints out passcode that is valid for an hour or two... just hope they dont keep getting drip refills to extend their time. ha ha
Posted by: | October 11, 2007 at 07:13 PM
I believe the T-mobile contract is for 10 years. And the hardware investment was all theirs, so I don't see a change anytime soon. Love the access code idea on a receipt, though!!
BSR...running out od soy once a month in every store?? We don't at mine. If the pars are set, and whoever places the order does it correctly, it shouldn't be a problem, just like with most other things we have.
Posted by: Borrowed Partner | October 11, 2007 at 08:32 PM
E-Tech Guy- are you a service technician for the retail stores?
Posted by: CdnSM | October 11, 2007 at 09:24 PM
Yes, please have free WiFi. It will be good for business.
Posted by: Bladerunner | October 11, 2007 at 11:24 PM
Hey PAT,
Remember the mission starement and the guiding pricipals and dont be so rude!
Posted by: | October 11, 2007 at 11:36 PM
So customers have a mission statement too? I'm not familiar with that. Which one of the Mission's policies did I "violate" for you... Was it "creating enthusiastically satisfied customers ALL of the time" or "embracing diversity"?
Please don't misuse the Guiding Principles for guidelines for web discussion... I think the point was that coffee passion is shared and not mandated.
Posted by: Pat Nerr | October 12, 2007 at 03:53 AM
CDNSM: Guilty as charged!
Posted by: E-Tech Guy | October 12, 2007 at 05:36 AM
Pat, the little one about respect and dignity towards all partners...Maybe THAT jogs your memory...Your sarcastic remark about touching beans in the last 3 months was rude. Your point about starbucks not being about coffee is valid, but your method of delivery SUCKS!
Posted by: | October 12, 2007 at 10:14 AM
all I can say to you is... Nice modeling of behaviors.
anonymous...
Posted by: Pat Nerr | October 12, 2007 at 12:04 PM
Thats a strange thing to say to someone who was calling you on your bad behavior...an apology works too.
Posted by: | October 12, 2007 at 12:18 PM
again... how is calling out the obvious "bad behavior"?
I accept your apology... though it is not needed.
Posted by: Pat Nerr | October 12, 2007 at 12:34 PM
Don't pull the Guiding Principles card on Mr. Nerr. He promoted himself to customer long ago.
He hasn't done anything wrong. The most we can ask of him is to be respectful as a human being.
The end.
Posted by: seventysix [76] | October 12, 2007 at 01:18 PM
Pat, you are a very abrasive, not to mention tenaious person. Your circular argument boggles the mind...If you want to believe you were being applogized to, then why not...be my guest...That dosen't change anything that's been said.
Posted by: | October 12, 2007 at 01:23 PM
Starbucks signed a crazy long contract with t-mobile (to the tune of 10-12 years)... crazy right? but they signed the contract when paying for wi-fi wasn't weird at all... now that they are almost 9 years into their contract the cost to the company would be huge to replace all of the t-mobile equipment... trust me, i'm not saying i wouldnt love free internet @ my bux, but i dont see it happeneing (especially in smaller makets like mine) for a while... :(
Posted by: Max | October 12, 2007 at 01:28 PM
Any company that thinks long-term with technology -- and signs long-term technology contracts -- is foolish.
Posted by: Jim Romenesko | October 12, 2007 at 02:18 PM
I think it's prety funny that someone who obviously feels so hostile towards Starbucks spends all their time talking about it on here and being a complete know-it-all. Nerr is a steaming pile.
Posted by: j-son | October 12, 2007 at 02:22 PM
free wifi is in the future i'm sure...how could a company like starbucks fall behind on a global decision to have handheld wifi gadgets?? totally unlikely...
Mr. Nerr...for the past five weeks, sbux has been in it's "annual bean sale" mode and you should have noticed this in all locations you visit...the beans were EVERYWHERE...
bostonstarbucksrebel...soy is super un-predictable...we can have one case last a week...or even three days...the problem is that you can only make two venti soy drinks out of one box...LAME...we need larger soy containers...just b/c you have pars set and blah blah doesn't mean you won't run out(whoever said that is over generalizing). i hope you tell your manager how frustrating it is and they start over ordering just in case...btw...i'm transfering to boston nov. 1st...
Posted by: drivethruhater | October 12, 2007 at 02:47 PM
HA!... You know me so well... I thought this was a place about Starbucks... both sides of the coin, and the edge of it... My mistake...
I think it's funny too... but I don't have to call you names over it...
just sayin'
Posted by: Pat Nerr | October 12, 2007 at 02:51 PM
sorry... didn't see them or hear about them DT Hater...
Posted by: Pat Nerr | October 12, 2007 at 02:53 PM
The other morning, I noticed the barista at my regular *$ yawning, so I jokingly mentioned to her that the solution (an espresso machine and tons of beans) was right at hand.
Her response? "I don't like coffee." :)
Posted by: Sam | October 12, 2007 at 03:14 PM
Since I promoted myself to customer two and half months ago, I haven't been offered beans once. Except from one of my former partners who offered me her markout.
Posted by: ex-sbuxmanager | October 12, 2007 at 03:15 PM
Sam and Ex-SBUX... do you guys sense hostility from me or just a critical tone??
I'm trying to hone my craft
Posted by: Pat Nerr | October 12, 2007 at 03:22 PM
Pat,
I think I can answer that honestly if you'd like. At times I have thought that your approach was a bit rough around the edges. But then you showed me that this site is for all starbucks related discussion and I have learned some things from you. I think it's all in how people take you. I think you are a nice guy and I can see that you still have some passion left for the company. People on here can be rough, believe me I've been on that side of the firing sqaud, it ain't no picnic. To each his own, you crack me up at times and piss me off other times, just like one big happy family should be :)
Posted by: Darleen | October 12, 2007 at 03:36 PM
I don't get much hostility from you Pat. Maybe a little, but I don't know a single current or former partner who doesn't have at least a little bit of hostility towards some aspect of the bux.
Personally, I like your insight into what was going on at the SSC.
I think the problem is that we have two kinds of people who respond to you. There's people who still drink the Kool-Aid and people who have stopped drinking the Kool-Aid.
Posted by: ex-sbuxmanager | October 12, 2007 at 03:36 PM
There's people who still drink the Kool-Aid and people who have stopped drinking the Kool-Aid.
You know I gotta say I hate that term. Just because someone believes in the company they work for does not mean they are brainwashed, it's a bit insulting to even say that.
Posted by: Darleen | October 12, 2007 at 03:39 PM
Wait till you stop drinking the Kool-Aid,...then talk to me about it.
Posted by: ex-sbuxmanager | October 12, 2007 at 03:40 PM
Agreed
Posted by: ex-sbuxmanager | October 12, 2007 at 03:46 PM