Starbucks fires CEO Donald, brings back Schultz "for the long term"

Starbucks is bringing its chairman and former chief executive, Howard Schultz, back to lead a major restructuring initiative, replacing CEO Jim Donald. Starbucks says the leadership shuffle is part of a series of initiatives to increase shareholder value, which also include closing underperforming U.S. stores and slowing the pace of store openings. || Read Schultz's letter and voicemail to Starbucks partners. || What do you think Schultz should do right away? (Read the Associated Press story)
> "There will be important changes across the company." Starbucks' Q-and-A section notes: "It will also be fun to see the enthusiastic response of our customers when we show them once again the creativity, innovation and excitement that has made us one of the best known and respected brands in the world.
> Schultz has to prove he hasn't lost his touch at execution, writes Herb Greenberg. "My guess (and bias) is that he’ll do just fine. As will Starbucks, the brand."
> "We lost the focus on what we once had, and that is the customer," Schultz says in a call to investors.
> Wall Street loves the news: Shares of Starbucks were jumping $1.12, or 6.1%, to $19.50 in after-hours trading Monday.
> THE INFAMOUS MEMO: Almost a year ago Schultz talked about "the watering down of the Starbucks experience, and, what some might call the commoditization of our brand."

Comments

[Boring Market]

I hope this is the turning point for their declining stock price, though the business is strong and they still are the market leader.

This makes me feel better about our direction. I have faith in Howard.

[Pat Nerr]

Congrats Starbucks partners...!

[xsbuxdm]

About time!! It will take awhile though. Realignment of leadership is a great start! I left after almost 11 years because of piss poor leadership in my area.

Bring back Howard Behar and Orin Smith and the game will be on again!

[BOSTON STARBUCKS REBEL]

I am most excited to hear this news. Uncle Howie to the rescue!

BOSTON STARBUCKS REBEL ALLIANCE
LONG LIVE HOWARD SCHULTZ
STARBUCKS REBEL ALLIANCE
AIM SN: BOSTONSTARREBEL

[N]

Finally! A decision headed in the right direction!
I'm looking forward to a realignment of leadership. It seems we've lost so many good to great leaders... while picking-up any ol' management-type along the way. It's time to get back to allowing managers to do their jobs, baristas to do their jobs, and stop all of this extraneous crap that befuddles the focus.

Whatever happens... I'm looking forward to the changes because, yes; I trust Howie.

I haven't felt this motivated in some time!

[frubner]

Howard is great and wall street wanted him humbled and guess what they got their way and we got ours. He is back and the stock is responding. he is a master.

[Joe]

Hmmm...lets recap.

Did you trust Howie when he hired Jim Donald?

Did you trust Howie when he stood with Jim and continually talked about upcoming explosive growth?

Did you trust Howie when he stood with Jim and ok'd all the non coffee initiatives that presumably took everyone's eyes off the ball?

In other words, Howie never left. How anyone thinks the past two years went by without his participation is a mystery to me. If he participated, then he is just as much to blame as Jim for what's happened.

Replacing Jim is nothing more than smoke and mirrors. The same person is ultimately in charge. He may very well make changes that will eventually propel the company forward however Jim is nothing more than a scapegoat in this scenario.

[snagger]

Jim was an east coast song and dance man,he'll sure be missed at the shareholders' meetings. Maybe Howard can get a little help from Orin and get SBUX back on track.Its dedicated partners deserve the change.

WOOOOOO HOOOOOO !!!!!

Welcome back Howard!

[Darleen]

Words can not even begin to express what I'm thinking right now.....I wish this company much success, let's hit it out of the park this time!!!!

[Des]

Howie's BACK!!!!

Maybe some of the old fashioned "luvvvvv" will return to our stores. Oh, there is gonna be some head cuttin going on with the suits.

Joe makes a great point. My money's on that Howard never left. He just wasn't there officially.

This, though, is a great move. You partners can FINALLY feel like SBUX can deviate from the McDonalds road it's heading down.

[lux]

Great news IMHO.

[Andrea]

It's about time! I bought the stocks when it was in the mid-30's. And It kept tearing at me to see it go down so low.

Starbucks needs to generate some buzz....maybe announce that Wi-Fi will be free!

[Lucky McBucky]

Finally!! I am looking for the return of the vision, let's get back to the things that made us great!! I am ALL IN!

[Emma]

THANK. GOD.

Next announcement that should be made: tossing out all warmers and replacing auto-shot machines with low-profile manual espresso machines.

Now if he'd just kill all licensed stores (this coming from a partner who started out at a licensed location....

[Beantownsbuxbitch]

I am praying that things will change. I have lost a ton of money these past few months in stock, and actually opted out of SIP because of it. Baristas feel like no one cares anymore, because people who have no business being a Starbucks manager are getting promoted. It has been so bad at my store, that I actually have an interview at Dunkin Donuts on Wendsday. I don't want to leave the company, but I commute an hour a day to work. If I can work closer to home and be treated the same for the same money...why not. I am now going to reconsider leaving.

[stlssbxmgr]

Way to go H.S. Maybe it's time for the return pf the entire H2O team. Sounds like Skinner, Twohig and LaPorta are riding a fine line too.....

[Sue Matra]

Wow, super exciting news. A huge step in the right direction. I'll second bringing back Orin Smith as well.

[sbuxnewbie]

I also see that they plan to close underperforming stores... i just wonder what the definition of "underperforming" will be....

Will they arbitrarily set a cutoff of $15,000 per week? More? Less?

How long will it take for a store to qualify as "underperforming"?

We've been open less than two years, and while our sales are in excess of 30% more than last year (and with a LOT less merchandise over the holidays), we're still below the level that sales were anticipated as being, when they chose this location for a store.

I'm excited, and worried, too. I know that if my store closes, I've got 5 other managers who want me to come to them as a shift (they've already asked). I'd rather stay here, with my manager, unless and until a promotion comes along. Still waiting on that.

We'll just wait and see what happens.

[Sue Matra]

Just read the article. They are also planning to slow the opening of new stores. Another huge step in the right direction.

[Pat Nerr]

Sue... I knew a lady named Sue Matra at the SSC... same person??

[Andy]

Yes, yes, and yes! Excellent news and a smart move by Howard Schultz and Starbucks. I couldn't help but nod my head in agreement on so many points in Howard's statement. The Company was going in a bad direction, and fast, and Howard recognized it. He made this company what it is, and I have no doubt he has the skill, tenacity, and passion to return it to glory!

The timing of this announcement is important in two big ways:

1) It stops the bleeding on a stock price that was in a tailspin. It brings an immediate shot of confidence back into the company, and hopefully, stockholders/investors.

2) It returns focus to Starbucks on a day in which McDonald's makes a huge committment to espresso-based "beverages" (c'mon, it's McDonalds - have you tried it? I have...Blech!) at all of its locations. This overshadowing effect on a ever-growing competitor is huge.

I for one am excited about this news, and I hope it produces meaningful positive change for the Company and for its customers.

[seventysix [76]]

I am extremely happy with this news. Best of luck to Howard as he tries to fix this mess.

We can do our part too! Really astound your customers with legendary service! Best of luck to all partners as we go through this transition and put this company back together.

Best from,
seventysix [76]
Partner

[Sue Matra]

Sorry Pat, just a play on Sumatra. I've always been fond of the Joe Java/Fred Frappuccino fake names in the training materials.

[leeannaindiana]

i have not heard such good news in a long time.

i'm sure the next several months won't be easy, but i sure am excited to see what happens!!

pat, did you have any idea that THIS would happen? or just hoped it would? :)

[Bladerunner]

Kill all licensed stores(but not airports). Refocus on COFFEE! Thank You For Coming Back Uncle Howard!!!!

[Erin]

I agree with the poster who wishes for the return of real espresso machines. I was a partner back in the days when all stores had La Marzocco machines and making drinks was still something of an art. I used to get all my espresso at Sbux, but since all stores in my area have switched to push-button machines, I only get a decent espresso 1 out of 10 times. I bought a machine and make it at home now. I hope they can improve the quality of the drinks for people who still care about how the espresso tastes.

Turn the Barnes and Nobel Starbucks cafes to Seattle's Best. That would be a better fit. Those cafes just confuse the Starbucks brand.

[Barista]

Uncle Howie, great that you are back. Please also focus on DM's and SM's that seem to increasingly fail to set a leadership standard, look for the worst in others, fail to recognise, APPRECIATE and promote talent and engage in continuous back stabbing and gossip while attempting to perform their jobs.

[feministabarista]

This is the day the coffee gods have made... Finally I feel like Starbucks is heading in the right direction, like all is not lost, like our voice is being heard, like what we do everyday has value and is not on the chopping block. It's not even that "Howard is back", for me this is just the icing on the cake. Its that Jimbo is gone. He was just absolutely poisonous to our culture, and now its going to be a bright (bright), bright (bright), Sun-shinin' day!

[SBUXGUY97]

A fantastic start to 2008!

I do not believe at all that this is smoke and mirrors.
This company was Howards passion and dream. You read his book and you wish you could have such faith and passion and courage to build a different place. I worked in that place, and although I work for Starbucks, it is not that old place.
I really think he is taking his baby back. We all trust people that maybe we should not - lucky for Howard he realized it in time - or was told to realize it in time.
either way I am hopeful for what what was and what may be. It is worth it to hope so.

ange.

[samlltownsm]

On a day when I was beginning to feel burned out after a very long Holiday season, this is great news. I am so ready to fall in love with the company again and let that overflow onto my partners. I am so ready!!!

For what it's worth.....................

I share the thoughts that this is good news for the organization but I would caution all of you who are partners that this in and of itself will not solve some of the issues that have taken away from the "Starbucks Experience" It wasn't Howard who served a nine second shot, it wasn't he who allows scone crumbs to pile up in the furniture or allow trash to over flow. It wasn't him who makes me feel like I am being a burden on their time instead of recognizing that my dollars are actually what pay you.

Partners at the store level.......turning this around lies with us. Do not be satisfied with mediocrity from yourself or others. "Good enough" has rarely, if ever, been good at all for anything.

Lastly, stop blaming the 801 for all the issues with the espresso. I worked on LM for years and have had plenty of terrible shot from them as well. That quality comes from the pride the user takes in creating the shot. I don't know why we lost that but as part of above, we should get it back.

[Chris]

I am so super excited to hear this great news. Howard has got his hands back at the helm and hopefully will steer the ship in the direction we all know and have known for some time to be right.

[Lauren]

I agree this is not a solution.

Honestly though, I lost some serious cash in this last stock slide and even the mention of Schultz and I made almost a grand (thank you, thank you).

All I'm hoping is in our hearts we do lessen the "watering down" and return to the Starbucks I was hired to, not the one I work for.

[15yrsbuxvet]

There's a bit more house-cleaning that needs to take place in order to turn things around here. While Jim Donald's leadership never came close to those before him, it's people like Jim Alling who have been asleep at the wheel for far too long. As a former Partner and current shareholder, I'm pleased to see Howard step up, take responsibility, and assume control of the company that he is so passionate about. I do hope that he will remember the reasons why he relinquished that role years ago. While Howard is a brilliant marketer and visionary, he was best served when supported by strong support in the operations role. While Howard has stated that he is interested in flattening out the organization, which would be a wonderful thing, if ever there was a time for a COO this is it.
Kudos to Howard and the Board for demonstrating managerial courage and best wishes to all for even more success.

[No Name]

To: Jan 7, 2008 6:47:41 PM

Thank you and Bravo! What you said struck such a chord with me-you are so right...The dilution of the Starbucks experience really does live or die with US, the front-line staff. It's so obvious I'd almost forgotten it...Don't accept sub-standard ANYTHING-from cleaning to drinks to terrible partners, and we'll be just fine. :)

WELCOME BACK HOWARD!!!! Time will tell-I'm very hopeful and excited !

[CoffeeMan]

I share a lot of the thoughts posted above, especially about the gossip and backstabbing. I have been made to feel like a criminal at some Starbuck's. It has hurt me so much that I can't even express it in words. The coffee is fine - it's training and promoting the right people that's the problem. And a few more secret shoppers would help too, to weed out the employees that give away far too many drinks and take one hour coffee breaks!

Many things...

-get rid of the licensed stores
-build-in a month-long probation period that makes it easier to ax lazy, ineffective, unenthusiastic baristas... give them measurable goals
-improve the quality, and less the quantity of pastry options...
-for Seattle's sake... calibrate your shots and make quality drinks!

[AverageJoel]

OVERJOYED!

Can't wait to hear what's coming...

All I'm saying is scone crumbs don't pile up in my store.

In fact that's sort of my personal motto: "Not in my store."

Overflowing trash? Not in my store.
Substandard drinks? Not in my store.
Messes? Not in my store.
Unhappy customers? Not in my store.

I am so proud of the store in which I work that it's to the point where I'm almost elitist about it. I don't really want to work at any other store in my area because I think mine hits it on the head more often than any other store. We take pride in it, and I've had several "borrowed" partners come in and say that our store is the nicest they've ever worked in. Which makes me wonder why. Why don't all stores strive for the same sort of excellence?

[Joe]

Howard: Lose the stinky ovens. I want my coffee minus the stench.

[redbean]

"...since all stores in my area have switched to push-button machines, I only get a decent espresso 1 out of 10 times."

The 801 can make a great shot. And they WILL be getting better. Over 10,000 of the 15,000 new flavor profile kit upgrades are out there and need to be installed by the techs. Hopefully there will be a big push to calibrate shots throughout the day. I've had a 10-second shot from a LM and it's just as nasty as a 10-second shot from a 801.

"Lastly, stop blaming the 801 for all the issues with the espresso. I worked on LM for years and have had plenty of terrible shot from them as well. That quality comes from the pride the user takes in creating the shot. I don't know why we lost that but as part of above, we should get it back."

Well put. I think Howard stepping back into the CEO role is fantastic news. He has a passion for coffee. Please, please, please get back to the basics. It all started with a great shot of espresso and that's where it needs to return.

[starskilled]

howard was never gone. ever listen to a voicemail from jim donald??? nope, our thanksgiving voicemail??? howard shultz. and a realignment of leadership?? think, no asm's, dm's running stores, and customer run push button machines. its about getting back to the COFFEE not getting back to taking care of the barista. the only person they will be taking care of is the shareholder. and now we have to compete with mcdonalds. hello, micky dee's doesnt pay their PEOPLE crap. it costs a lot less to pay machines.
loved it while it lasted.

[jabanga]

good riddance jim donald. i know you will reap the rewards of some huge severance package but regardless of what happens in the future i take great delight at you being asked to leave. don't let the door hit you on the a**. maybe walmart'll take you back. it really is a much better fit for you.

[Christin]

I am very excited for this news! Although I'm sure Howard had plenty of influence the last few years, him really taking control is going to be much better for the company. After seeing him talk, watching his video at the roadshow, and reading things he puts out, I am convinced of the passion he has for the company and it's mission.

[Fred]

Starbucks will never change......even if Howard is back!
Starbucks has to change at the core. The coffee is fucking disgusting! The beans need to be thrown out and roasted by people who know more about coffee than McDonald's customers.

FUCK ALL OF YOU!

[Fred]

Starbucks will never change......even if Howard is back!
Starbucks has to change at the core. The coffee is f*cking disgusting! The beans need to be thrown out and roasted by people who know more about coffee than McDonald's customers.

F*CK ALL OF YOU!

[jabanga]

wtf fred?

WRONG said Fred...I'm with jabanga...WTF???

[Melody]

Woooohooooo! As soon as I saw the seattletimes updated article I talked to a couple of partners who were very excited about this. 76, my friend, there IS legendary service out there to be had! I look forward to your enthusiasm on this board. :-)

This is a welcome change. We know that Howard has a different kind of passion about coffee otherwise he would not have kept the old La Marzocca at the Madison Starbucks Store (at his behest so I'm told). I'm not saying that machines will change, but with him in the seat of responsibility, I think he can really take back the company!

YEAH!

[SoCAL STARBUCKS REBEL]

YESSS!!! way to go Howard. Last year was the first year we didn't get any options. in the six years Ive been here. THREE CHEERS FOR UNCLE HOWIE

[SoCAL STARBUCKS REBEL]

HIP
HIP
HOORAY!!!

Howie, this is for you--BRING BACK THE SMELL OF COFFEE and stop opening stores in economically challanged neighborhoods, that just lowers the brand.

[Javaccino]

Last week was the worst week I've had since becoming a partner. I was losing my enthusiasm for the job and for the company. Well, if Starbucks is ready to refocus, so am I.

Now if I can just figure out how to get the sleep my brain requires the night before my opening shifts...

Next announcement that should be made: tossing out all warmers and replacing auto-shot machines with low-profile manual espresso machines.

AMEN

[Lindsay]

Thank you to all the partners who are trying to re-catch the vision- which mayb be the overall key- the priority of face to face customer service does begin with US who see our customers face to face! It's definitely an encouragement, though, to be supported in trying to really be legendary.

[Javaccino]

Next announcement that should be made: tossing out all warmers..."

I'll drink to that

"...and replacing auto-shot machines with low-profile manual espresso machines."

I'd love to learn how to use one of those, but, my rush period customers would hate it. Unless the powers that be stop making our SM's under-staff us, then maybe we can double bar whenever we need to.

[socal]

Starbucks will never turn around until the customer experience is dramatically improved, and no-one is discussing how to make the customers more comfortable in the stores. Starbucks is so "PC" that customers are chased away regularly. How many stores are frequented by smelly bums and homeless? is anyone, no matter how offensive, ever refused service? Is it really so cool to force your proclivity for nose rings on your customers on top of the price of the coffee? This is not the experience the customer wants!

[almostanasm]

Wow! This is pretty huge. I pray to god the first thing he does is throw out SFMocha and kick out the skinny platform!!! Fight to make Starbucks the leader in the food and beverage industry- stop using artificial colors in the products, cut down on alergens....

Closing the underperforming stores is an excellent idea. Sbux is starved for good managers, and there are tons who have been promoted before they are ready for it, just cos they have a gap they need to fill. Thats a big reason the company has suffered.

Bring back the Third Place and the legendary experience!!!! Bring back big comfy chairs.... less drive thrus (even though i work in one and ADORE it), more connection time.....

This is awesome, awesome news!!!

[Alex]

"Is it really so cool to force your proclivity for nose rings on your customers on top of the price of the coffee?"

I appreciate the type of humor you were shooting for, applying the stereotype that baristas are heavily tatted and pierced slackers, but Starbucks doesn't allow nose rings. So either your store isn't following policy, or you're ignorant. Thanks.

[apartner]

i'm with javaccino....bringing back manual machines just wouldn't cut it in a high volume store. it might taste better but it really wouldn't be right for most of our customers, who have gotten used to our speed of service.

the verissimo can make a decent shot, but you still have to try. you have to store the espresso properly, calibrate the shots, and FOR GODS SAKE, DON'T SERVE EXPIRED SHOTS.

Nose rings??????

I once made a drink for Jim Donald and his possy that came into my store. I was a new Barista and a pretty good one for being new. I made his drink and called it the name on it was Venti. I made his associate's drink and called it. Jim watched me make the drink and lid it. When I called it he rolled his eyes at the hand off counter and said, "Did you stir that white mocha?" I replied, "No, sir im sorry I didn't." I took the drink back and stired it. As I did so he called to his associate and yelled he doesn't even know that hes supposed to stir your drink. I had no idea that day who the man was that went by the name Venti but now I do and I am glad to see him go. I feel like star skills and legendary service should always be displayed by partners even if they are corp big wigs. I lost a lot of faith that day but 2 years later im still with the company because i believe in what Howie created and i want to live the dream that was a reality for so many in the golden years of Starbucks...

[bigbaldirish]

we'll never go back to LM machines, get that thought out of your heads. I truly miss those machines, just the logistics of going back is not going to work. since going to that machine, a 20,000 dollar week doesn't seem like it's really that busy, as compared to a 15,000 week with a manual machine. we can bang out four drinks much quicker and with more consistency ( no more depending on the humidity of the day, or how many times the door opens)
while it may have been a mistake (imo) to get rid of manual machines, we are stuck with them now, and will not get rid of them.
warming ovens are also here to stay. i do believe we will drop lunch, and alot of RTD, hopefully keeping it Tazo, bottled frap, and Ethos.

[PDX Barista]

Whoa this is a happy day in Starbucks land! I am thrilled that Howie is back in control. This has become something that he could not have foreseen. Remember, Howard did make the decision to bring JD to 'bucks on his own. When Behar was officially retiring he was the one that convinced JD to take this job.

Was he still there plugging away and fighting the good fight...yes he f'n was. Donald spoke at our roadshow about how he and Howie were having a heated debate over the direction things were going. JD was the decision man or he had abdicated to many of those key decisions.

15yrsbuxvet made the comment about needing a COO. We have one and his name is Martin Coles. He was brought in to help Jim. Coles gets it! He has passion and understands the culture.

RVPs on up are in for a bumpy ride. The names mentioned earlier- LaPorta, Skinner, Twowig were here at Starbucks before JD and they will hopefully stay.

I am excited! 801s make a good shot if you let them run about 18 second shot. I say keep those. Bring us back to being the premier coffee company that has the best coffee and sells the best equipment to make coffee with. Bring back the Star Skills discussion to CORE.

Earlier it was stated that we own it at the store level. True. It becomes dilluted and weak when there are not enough people who "get it" in an area to keep up the culture. It takes a high standard of execution and effort to make what we do happen.

Onward and Upward! Go Starbucks!

[chitown's best/angriest barista]

i'll admit, i'm a little skeptical until i start seeing some results, but i really hope this turns out well. i'm most excited to hear about the slowed growth. i feel like we're trying to do too much and be too much and we can't keep it all under control and keep it all good anymore. maybe this is a good start? i'm not sure that closing stores because they're slower is a good idea though. there's something to be said for the little chill stores that aren't solely about getting you in and caffeinated and out as fast as possible. i worked at quite possibly the world's slowest starbucks for a while, and it was actually pretty nice. lots of regulars and people taking it easy, the way i think coffee shops are supposed to be. so i say don't close any stores, just stop opening new ones for a while until we get our feet under us again. overall, things might be looking up.

[zoom]

As a ten year partner, I'm glad to see some shake-up occurring at the top. The one thing that I took away from his voicemail is eliminating the bureucracy. I hope that applies at the regional/zone levels as well as the head office, as they're are far too many Jim Donald types in my area who see me and my partners as line items on their P & L sheets. It's these cowardly " I will cover my ass types and you cover yours" that need to go first before we do anything else. The second group of partners that need to hit the doors is those who blindly say yes to their bosses without taking time out to respectfully question or seek clarification on certain initiatives. Everyone has all kinds of "great" ideas, and they push them down, but no one ever is there to be a devils advocate of said initiatives, processes, procedures, and implementation. Lastly, Howard hit the nail on the head with the customer focus. I think he gets it that our stores are the center of our universe, and doing all the things that promote the Starbucks Experience at the store is by far the most aspect of what we should be doing.

[Rocky Mountain Barista]

Maybe this will bring back the passion we've been missing and help us to succeed in the new market. Micky D's can serve espresso beverages, but they can't give the starbucks experience, lets bring the 3rd place back!!

[Tim]

I am so happy about this. I love this company so much, and I was almost in tears of joy this morning when I heard the news. I'm just so thrilled.

I aggree with zoom about the idea of more devil's advocate...Don't accept mediocrity!

What this company needs right now is a bit more push-back!

Did everyone notice that Howard's "Letter to the Partners" encourages us to contact him directly with our suggestions?

I suggest we do so-here's your chance to be heard-don't miss it!

[Rasheen]

It funny watching all the authoritarian coffee drones squirm in their seats when they think about star buck's stock at $18. It wasn't that long ago when this board crawled with inflated egos that threatened to "report" any barista that spoke out against the company. As we all now see, rule by fear and intimidation is the mark of failing organization. . . and a fascist one at that.

[Schtuper]

Bill Clinton became president when he screamed "It's the economy, stupid!" Well, the economy is in the tank and Starbucks is asking nearly 5 bucks for a cup of some specialty coffees. That's absurd!! Cut the price Howie and you'll see sales soar!! My wife has dropped back to regular black coffee and adds her own sweetener. That'll save about $200 a year right there.

Stop treating this low end job like a cult. Franchise out the underperforming stores. Stop with drive through expansion, it is a market McDonalds will destroy Starbucks in.

[Robertwiii]

"It will also be fun to see the enthusiastic response of our customers when we show them once again the creativity, innovation and excitement that has made us one of the best known and respected brands in the world."

Looking for the creativity and innovation to ignite. Some suggestions?
1: Look at hidden assets (what r u doing w. all thos coffee grounds?)Shiitake any1?
2: How about an incentive program for patrons to offer a discount on products or other services?
3: Oil prices up? -= use a new lid save $$
4: Health & Wellness - not flavorance (bioavailability)
5: YA free WIFI would help ^_^

creativity and innovation are just buzz words to reassure investors you got something in the works - Look forward to seeing what is factual and actually implemented.
-GL Sbux

[TheGreatMidwest]

Pretty excited about this. I guess none of you are aware of the upgrade coming to the 801's in the coming months? They are all getting an improved flavor profile upgrade.

The change will be great. I about lost my mind last year whenever we had TWO promotions going at once during the Brew Sale. Good idea, Jim.

I expect less stores, less goofy promotions, less focus on non-coffee products.

Here's to '08!

[Christin]

I wish people would stop using the argument about stabucks charging 5 dollars for a cup of coffee. You argument is automatically invalid because starbucks doesn't charge 5 dollars for a cup of coffee!! In the vast majority of stores a cup of coffee is 2 bucks or less. And it would take a nice lot of modifiers to get even a white mocha to 5bucks.

Luhch will not be going away either. It goes hand in hand with warming. I see nothing wrong with it. My store is right next to a quiznos and we do great lunch business and it does nothing to take away from the customer experience. (We don't have warming yet but people are demanding it)

I agree with those who say Martin Coles gets it! His speech this last year at our roadshow was passionate and honest. We were all allowed to speak up to him about things we didn't agree with, and he gave us frank answers about what was and wasn't going to change and why. But his focus was us taking 100% responsiblity for the actions we have control over and never settling for anything but legendary service from our partners.

[Christin]

(excuse my typos, I have the worst keyboard on earth)

"I once made a drink for Jim Donald ... he rolled his eyes at the hand off counter and said, "Did you stir that white mocha?" We are not suppose to stir the drinks, spoons should not be put in the cups if this story is true that shows how much lack of knowledgable he had to our standards.

[Love Sanani]

Less than 2 bucks for a cup of drip, yes, but most stores get a huge percentage of their sales from from espresso and frappuccino drinks, which can easily run $5 depending on which market you are in, the drink size, modifiers, etc. Everyone fogets that most consumers don't "split the hairs" and differentiate drip coffee from an espresso beverage - all they know is what is in their individual cup costs "x" amount of $$, whatever it may be.

The difference in the taste of the shot from an LM and 801 is definitely arguable. However, in the transition from LM to 801 the only thing that changed was the actual time of the shot: standards remained the same in the sense that they all have to be timed and calibrated, and should not be served after 10 seconds. Bad/lazy baristas, management that is committed to quality, serve bad shots - period! Proper milk steaming techniques are critical as well. The type of machine they are pulling shots of won't change that!

[doktorbombay]

What a joke. Do you really think Jim Donald was doing anything without Howard knowing about it? No.

And, if JD was operating without Howie's knowledge, shame on Howie for being such an unengaged Chairman.

But, don't believe it. What will change? Not much. This was done to strengthen the stock.

First question. Will Howie be able to re-engage in the business?

Second question. Does Howie have the ability to pull another rabbit out of his hat?

If he's a good manager, he'll listen to the right people and not act like he's the only one with the answers.

Early years of SBux were easy. Build more and more stores, and watch the stock value go up. Totally different today, and much more difficult to change direction of this behemoth.

This'll be fun to watch.

[Javaccino]

"Proper milk steaming techniques are critical as well."

I must argue that the auto steam shut-off on the 801 encourages us to press the steam button, and start syrupping the next three cups, or turn around and start working on a frap, instead of paying attention to what we are doing with the milk.
The steamers on the 801s in my store kick in when when the thermometer hits 160, but then the temp continues to rise until 165-170. A 150-155 degree shutoff would be better IMHO.

[Javaccino]

The last part of my last comment wasn't clear. I hope you get what I mean.

[Terry Neal]

I am encouraged by Howard Schultz and his initiatives. However I wonder if it is too little too late.

I worked at Starbucks for a year in 2006 and found it a miserable experience. This was not because the store was awful but because I expected the same coffee shop experience I had as a customer.

Starbucks needs to get back to COFFEE. That's what they do best. I was a coffee master but I NEVER got a chance to be a coffee master in the store.

I also think the drive through is a horrible and cheapening feature of Starbucks stores. The drive through says "we are a McDonalds." If Starbucks wants to be a step above the pack why have they lowered their standards to be like the fast food places?

I would love to return to working for Starbucks now that Howard is back in charge. I have some great ideas for returning the company to its' roots, for enhancing the customer experience as well as the partner experience, (a real problem in regards to retention.) I want to extol the coffee bean and the beauty of a good brew. I even have an exceptional idea for a TV advertisement.

Howard, if you're reading this, give me a call or e-mail. I'll help if you're truly serious about returning Starbucks to the quality of yesteryear as well as the concept of a third place. - Terry Neal, Tampa, FL

[chitown's best/angriest barista]

i tried to do some of the "push back" and devils' advocate sort of stuff that was mentioned above, but all it got me was a request to quit. i'm not sure we're quite ready for that yet. but when we are, and if i'm still around, i will have plenty to say.

[Sarah M.]

This is the best news I've heard since I started in 1999. Just to be clear, Starbucks is not a "low-end" job. There is no where I could go and get the pay and benefits I have, in the atmosphere in which I work right now. I love my store and my partners. Also, our customers DEMAND the convenience of the DTHRU, cutting the DT would mean a huge loss in sales. We are also getting warming this spring, which our customers also demand and get really ticked off when we say that we don't have it right now. Oh, and stop with the free Wi-Fi campaign. We are not an internet cafe. The people that visit my store and use their laptop, expect to be charged for it-since when are things free these days? Just because McDonald's does? Have a nice, relaxing sit-down with a cup of "premium" coffee, while 300 kids are running around screaming next to the Playland-yep, that's definitely what our customers want.

[SbuxAccountant]

Hey Boston Starbucks Rebel, your quote is on the front page of the Seattle Post-Intelligencer this morning...

"I am most excited to hear this news. Uncle Howie to the rescue!" - from starbucksgossip.com

Just thought you'd want to know your thoughts have been documented for posterity. :)

And I can tell you all that the people at the SSC are just as excited as our front-line partners to have Howard back in the reins. Jim was mostly a good guy, but he was in way over his head with our culture, and never really understood what kept our customers coming back.

I'm looking forward to having passionate leadership again, through Howard, Martin Coles (who is the epitomy of Starbucks Culture), Launi, and Cos.

Cheers to a New Year!

[HOPE]

I sure hope Howard reads and take the advice from all of us.I believe in his dream and have lots of respect for Howard. I hope with all the believers in his vision he keeps his promises to his " partners" this is still corporate dealings and it is all about the bottom line. It is a simple fix and all the answers are here. Good coffee,training in remote areas, and not using materials to build stores that way over the budget. Lots of new products on the market that are eco-friendly but cost effective.Get rid of bad real estate, who picked some of these locations? Again the #1 put out a good product!!!!!

[Kelley]

The 801 sucks! compare a shot made by a manuel machine( like peets coffee has) and a nasty shot pulled from the 801, big difference! Do you really like being a push button monkey. And Starbucks while you are at it get rid of passionless DMs like Angela, she could'nt inspire anyone even if she tried.

[TheGreatMidwest]

Newsflash Sarah M.: Nearly every independant coffee house has FREE wi-fi. Panera Bread has FREE wi-fi. IHOP has FREE wi-fi. McDonald's has FREE wi-fi. We are a little behind, and it's embarassing. Take off your Starbucks glasses.

[Patty]

Regarding medical benefits for PT Partners:
Are the medical benefits for a family or just the Partner? My husband is self-employed and unfortunately our business has been affected by the recession. We pay ALOT to have medical insurance and it doesn't even include Dental or Vision. Our premium is about $700/mo. with an $8000 deductible/yr.

[Sarah M.]

Do you work for Starbucks, THEGREATMIDWEST? Because here's something people don't generally think about...what kind of benefit do we, as a company get out of giving free wi-fi? Is it really going to generate the necessary sales to pay for itself? Will customers really buy more coffee/pastries, or will they bring in their own food and coffee like a lot of them do now? Panera, IHOP, and McDonald's may offer free wi-fi, but what else do they offer? Independent coffee houses can offer free wi-fi because it's one or two stores-not 15,000. Ever thought of that? Also, we are in a contract with T-Mobile, it's not something you can just abandon when you decide you want to do that. We also have all T-Mobile equipment, do you think about the cost of re-outfitting all of our stores that currently have wi-fi? It's not something that can just happen overnight, or in a year. Think it through.

[Two Hints]

Three Tips

1) Free Wireless
2) No more automatic machines.
3) Roast the coffee in store.

LOCATION,LOCATION,LOCATION......

[Vicki Verona]

Kelley:
By "DMs like Angela," do you happen to be talking about a DM in California named Angela? Because if you are, I know exactly who you are talking about.

[No Name]

If you have feed-back and/or a great idea, PLEASE, for the love of GOD, send it to Howard ( or someone! ) ! I love this site, but don't just hope that someone will read it here and implement it!!!!!

As a recent partner I find this blog mostly depressing and whiny--whether people are Starbucks true believers or grouchy internet blowhards (or both). Bah. Starbucks is still a great company and is going though some growing pains at the moment. Stock is up. Howard is back. Those are good things.
Years ago I worked at another coffee place and we had "manual" machines. Sometimes those shots were bad, sometimes they produced badly-foamed milk, but it was the barista's fault if it those things happened. There's no romance to badly-done "manual" espresso drinks. The "automatic" machines do a fine job already and I look forward to the new flavor profile (curious as to what that entails exactly, but the tech who came to our store was excited about it). I am glad that the steam wands will automatically shut off when it his standard temp, so milk doesn't get scalded, even though I was trained long ago to listen to the milk and go by feel (and temp).
Free wireless does seem like a good idea to me, though.
And the SFM does taste like feet, or ovaltine, whichever you prefer.
Actually I don't even know why I'm commenting.
;-)

[TomF]

Good on you Howard!

Here are a few recommendations on your transition initiatives:

1.) Utilize Martin Coles to his fullest as COO. He should manage the upper management re-structuring plan He had lots of experience as a "hatchetman" when he re-structured Gateway. Keep him away from International though... beware.

2.) Utilize the H2O formula for management success (Howard S. - marketing, Howard B. - Operations, Orin S. - finance) Bring back P. Davis, D. Wager and promote T. Alstead-finance & K. Lindemann - ops)

3.) Beware of problems with International. Right move when you shifted Coles over Ailing, however Ailing may not be right for International. He may do better with C. Day over at Lululemon.

4.) Stay away from hot food and food prep. Not your expertise (Panera does much better here -- in fact their store design and customer service are commendable too -- learn from P. Twohig -- Panera's ex-COO). Bring back the LaMarzocco's to the neighborhood stores. Minimize use of the automated machines where feasible (there is definitely a difference in taste quality for coffee aficionados -- but not for tha average commuter looking for a "quick cup" of "trendy" coffee to "showcase" onway to the office.

5.) Bring back Open Forums on a more frequent basis. There are too many power hungry DM's, RDO's and RVP's out there focusing more on their personal bonus structures than promoting a Third Place experience for all. Listen to your partners and remember the guiding principles they created when this all began.

6.)Re-focus on training your store partners. There is a big gap between what is taught and what is practiced when it comes to customer service in the stores. The lack of personal service and cleanliness (check out your bathrooms in NY, Chicago, and SF!) has led to deterioration in your loyal customer base.

7.) Hire the right people on every level, especially the upper tier -- turnover and retention amongst your executives has been poor at best. SBUX has done much better at the lower levels. A restucturing of the H.R. team wouln't hurt...

8.) Get back to basics with the "Coffee". The CoffeeMaster program is wonderful, however there are too many store partners who still don't know what they need to know about coffee.

9.) Review the pre-packed ground coffee program. The taste profiles are disappointing. Much rather prefer the in store grinding of whole bean coffees from the "coffee bins". The coffee aroma in your shops is neglible. Many of your shops smell like warming ovens.

10.) What's this with Tassimo & Starbucks? It looks like SBUX is well on it's way to a freeze dried version soon to "extend its reach". I remember when it I looked forward to visiting SBUX for a freshly ground and pressed cup of my favorite Latin American Coffee. Now much of your product is pre-ground and automatically dispensed -- truly a "ubiquitous" cup of coffee from a "ubiquitous" coffee chan. Look a Peet's for a better model of a controlled growth" coffee chain. They do coffee right!

Good luck from a disappointed shareholder.

Three More Tips for retail success (for management as well as store partners):

1.) Hire the right people.

2.) Hire the right number of people.

3.) Ensure all people are properly trained.

[Kelley]

Yes Vicki i am. Any thoughts?

[Vicki Verona]

Last name starts with a V correct?

[Egat Drubvalic]

Starbucks will be lost unless it comes to terms with an key reality. Redesigning the stores is good. The music is good. The groovy music is good. But not everyone is looking for a third place. Many customers just need a good, quick cup of coffee and then get on down the road. Service has to be faster inside and -- this is critical -- there has to be drive-throughs. I hate McDonalds but find it hard to pass up the convenience of the drive through. You have to pay attention to that segment of your customer base that is busy and doesn't want to get out of the car. McDonalds is counting on them.

[Dan N]

Well, starbucks obviously had the time and resources to integrate their net services with the iPhone...how much does that help our customer base? Sure, it's not easy to make changes...but if SB wants to improve its samestore sales and to affirm its status as a "third place", it's just going to have to take a financial bullet for long term improvement.

no offense but our cafes are crowded enough...just say NO to free Wifi..That would just encourage more people who arent buying anything to camp in our cafes all day. I'm all for providing a third place for our customers but this is just encouraging the wrong type of environment..one that i'm not sure my customers would enjoy. Granted, we're a neighborhood store and people come to our store to connect with each other, not the internet.

[HOPE]

GOOD ADVICE FROM THE DISAPPOINTED SHAREHOLDER.

My fellow partners & I have often joked that it would be great ( for us! ) if there were 2 types of SB stores - One for the people who just want to get in and out as fast as possible,(drive-thru's etc) and another that's for lounging and sampling and coffee seminars etc...

Be done with the movie deals ,music labels and ugly store designs. Get back to good coffee and serving the communities that support SBUXS stock.

[Kelley]

No Vicki, this one starts with an H.

[Nothern Latte]

Bring back Leadership Conference every year! The canceling of Costa Rica started the downward spiral in store level managment engagement I think!

[Javaccino]

I would like to take advantage of the invitation on the partner Q&A page to contact Howard. How do I figure out his email address?

If customers want quickness in the drive thru then maybe they should stop ordering 6 beverages....When you come inside we can expedite the line and if you'r there for a quick cup of coffee you're going to get it quick but not in DT when some inconsiderate person orders multiple drinks while on their cell phone and messes up the order then gets to the window and looks at the 6 venti mochas and says ohhhh those are suposed to be frappacinos...it's not us (the baristas) 99% of the time slowing down the service it's the inconsiderate, cell phone toting, preoccupied, customers who hold up the service...the end of my rant!!! Welcome back Howie!!!!

I'm not 100% sure, but I think Howard's email would be hschultz@starbucks.com. Most SB addresses are firstinitiallastname.com.
GO FOR IT!!!!! :)

I'd be willing to bet it's hshultz@starbucks.com but that it goes to his secretary or staff...try it and let us all know!!

[FormerParnter]

I left the company because of the way employees were treated (ignoring the first bullet point in the mission statement!!) but I always believed that Howard really had the company's best interest at heart - he just couldn't be everywhere at once and he certainly wasn't in my location. I hope he takes over and his vision restores the Sbux of yesterday.

[saiphm42]

Sweet news and precise timing.
Howard is a smart man and he couldn't have timed this better. Well done! I'm glad he's back. I know some say he never left, but remember, you can lose track of things when you're not bombarded with them constantly. You put your trust in someone and hope they make the best decisions, otherwise you risk micro-management. Howard stayed back and let Jim do his job, CEO! Well, that didn't work out very well, and now the board wants to see The Man back in action. I think it's an excellent move.

[Tim]

Java, if you're a shift or above (I don't know if you are), you can just hit 4 after listening to his message on Voicemail and record a reply. He *does* for sure listen to his voice mails, and even though it's technically a reply to Partner Communications, that voicemail number is actually just a phone mask and the VM does go to Howard.

I highly recommend the voicemail idea, if not, go for the email - I concur that it's probably hschultz@starbucks.com (if we rely on traditional Starbucks email conventions) or something like chairman@starbucks.com.

[NYCSM]

-For all of you baristas out there. Let's face it the company just isn't what is used to be. I am a store manager but that makes me no less of a barista.
When I am on the floor the partners lack the energy and enthusiasm of years before. Somehow, they think Starbucks owes THEM something. We can only stop this downward slide in our individual stores.
No sales means, no hours! If you wonder why your hours are getting cut as your manager about sales and customer comps. How well is your team doing?
Remember passion for everything you do... or have so many baristas forgotten and just work for a paycheck?

[ladygeek]

This news washed over the baristas in my store today like a wave of happiness. Just a few days ago I was posting about how the company was headed down a wrong road, and now, look what happens!! I truly hope his passion will remove a lot of this extra crap we have---tons of retail, 16 syrup flavors, eight bagillion food items---and focus us on what we are and should be....a COFFEE shop. Let's smell the beans, let's certify more coffee masters....remember coffee seminars??? What a blast...I miss those.

And to the barista who posted that they cancelled their SIP because the price was so low.....WHY?!?!?! Ever heard of buy low, sell high? I actually increased my allotment percentage as the price dropped, because our last SIP purchase price was just over $17 per share!! In a year, that stock is gonna make me a lot of money.

Welcome back, Howie!!! All of Starbucks missed you, and we can't wait to see where you take us.

[Canadian SM]

"5.) Bring back Open Forums on a more frequent basis. There are too many power hungry DM's, RDO's and RVP's out there focusing more on their personal bonus structures than promoting a Third Place experience for all. Listen to your partners and remember the guiding principles they created when this all began."

Amen Tomf, all I can say is Amen!

[Javaccino]

I'll send the email, but I hope there is no Henry or Helga Schultz with a company email address.

[Adrienne]

All I can say is THANK GOD!!!!!!

I actually composed a letter to have partners sign and to send in explaining how we feel about the poor direction the company had taken. I printed it, took it with me to work this morning, and got the voice mail. I have never been more relieved by anything having to do with my job before. I am SO GRATEFUL that Howard is taking the reins back. Maybe now we can get back to the point....coffee.

[No Name]

I just checked Howard's profile on Mypartnercareer.com and he lists his email as hschultz@starbucks.com. :)

[oliversash]

I'm excited. like alot of you, about this move.However, I'm trying to be cautiously optimistic as far as the future goes. I've been with the company for 6 years and the problems that currently exist with the company, exist at every level. And this is a huge company. It's going to be like turning a battleship around (takes a long time, if you're not boat savvy
) So, whereas I didn't agree with Jim's happy-go-lucky, everything can be standardized attitude and I'm glad to see him go, Ther's not a switch in Howard's office that will magically change everyone's attitude and priorities overnight, it still will be beaurocratic.

[No Name]

Oliversash: You're totally right about there being no magic switch-we do have to give it some time.
Here's the next best thing until then-in my opinion- do our jobs according to the guiding principals of our Mission Statement and we'll be well on our way! It's harder than it might seem, but it will get us pretty far down the road!

[hope]

I Hope Howie reads all of this advice. Someone needs to email him to make sure he gets the message before the vultures of greed take over again.

Hope: How about YOU email him! Hschultz@starbucks.com. WE ALL should...

At the store level, the stores need management with restaurant experience. Stop hiring retail managers, they lack the ability to retain, train and direct a food service operation. Same with district managers, they need the food service experience in order to watch the trends that restaurants go through. Once the leadership is in place, drop the automated scheduling for stores. Let the managers do what you pay them to by managing their labor when they need it and not determined by some program written to schedule retail stores. Restaurant scheduling is very different from retail and a vast amount of problems at the retail stem from the scheduling program.

[BOSTON STARBUCKS REBEL]

I received the news as it crossed the wires yesterday evening. I immediately e-mailed Uncle Howie a congratulatory note and informed him that the Starbucks Rebel Alliance is dedicated to his efforts in renewing the past glory of Starbucks. BTW, I am going to go to the library to see if I can find that paper and photocopy it. Pax Starbucks.

BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE
AIM SN: BOSTONSTARREBEL

[deusx]

"5.) Bring back Open Forums on a more frequent basis. There are too many power hungry DM's, RDO's and RVP's out there focusing more on their personal bonus structures than promoting a Third Place experience for all. Listen to your partners and remember the guiding principles they created when this all began."

I agree wholeheartedly with this. I dealt with a DM who would sell his own mother to look good in front of his boss and get his max bonus. He had no regard for anyone underneath him as a person or even following policy or law.

Two examples, the sewer lines backed up explosively causing the toilets in our restroom to literally FOUNTAIN into the air. The bathroom was literally eight feet from our handoff plane. We had no idea if it was just the sewage line or if the water was contaminated but he ordered our Shift to have partners go in and clean the bathrooms of the fecal matter all over the rooms and to continue business as usual. This is a big OSHA violation plus it puts our customers at risk. We had to call corporate to get someone to step in and shut us down so the waste could be cleaned up safely.

The other example, it was a new store and it wasn't hitting the projected numbers quick enough for him. So he called each Shift into a private meeting to ask them what they though of how the manager was running the business and if there were any issues with the manager he needed to know about. Not that the Manager was doing anything wrong, he was just trolling for a reason to get rid of him I think..just an example of how shady the former DM of Columbus could be. Unfortunately they promoted him..he must of had blackmail material because he had a multitude of partner complaints, etc. against him. Even a lawsuit was threatened against him at one point.

[Darleen]

I emailed Howard two or three years ago to tell him a story about one of my shift supervisors, she had lost her baby unfortunately, but in the midst of all this I was out of town and she still came in and opened my store until someone could come relieve her! I told Howard about this and asked if he could do something to show her how appreciated she is. He responded and asked me what I thought we should do. I told him she is a huge METS fan, four days later a package arrived at my store with 4 tickets to shea stadium (sbux box seats). I gave her 100.00 to go have dinner and ever since Howard has been one of my favorite people. He does respond to emails, voicemails etc. He cares and will always take the time to respond.

[Vicki Verona]

Darleen! What a beautiful and inspiring story!

[Darleen]

Vicki,
That is the God's honest truth, I also had a problem with my transfer when I moved, I once again emailed Howard and sure enough there was a store waiting for me within a week. I can not begin to say how much I respect and admire our CEO. He is a kind man and his passion is deep, we will get through this transition and come out better and stronger for it!

[leeannaindiana]

""I once made a drink for Jim Donald ... he rolled his eyes at the hand off counter and said, "Did you stir that white mocha?" We are not suppose to stir the drinks, spoons should not be put in the cups if this story is true that shows how much lack of knowledgable he had to our standards."

agreed. there's a reason they call the skinny stirring spoon a "green tea latte spoon". b/c that's the only drink per standard that's supposed to be stirred.

i thought the exact same thing when i read that story!

[leeannaindiana]

darleen, those are the kind of stories i love hearing!

i admire and respect howard so much. i'm excited to see what the next several months bring.

[acoffeeholiday]

Since we're going into a refocusing phase here, I'd recommend bringing back the training classes.
When I started -oh so- many years ago, your first week was out of store with 5 classes that focused you to learn everything from hot/cold beverage stations to registers and customer service, along with basic equipment maintenance.
That kept unexperienced partners off the floor and avoided scheduling conflicts where the LC had to stop and help during busy times. Yes, the LC is supposed to focus on training a new hire only, but I've rarely seen a schedule that allows that unfocused time.
Also, while the new learning modules are an incresed improvement over the old ones, they simply can't compare to the dedicated time the 'classroom' setting provides.

Welcome back Howard, now bring our stock back up so I can afford my sabbatical!

[corianderstem]

To Patty, who was asking about benefits: yes, partners can cover their spouse, domestic partner and children.

[Dude]

""I once made a drink for Jim Donald ... he rolled his eyes at the hand off counter and said, "Did you stir that white mocha?" We are not suppose to stir the drinks, spoons should not be put in the cups if this story is true that shows how much lack of knowledgable he had to our standards."

White Mocha's and Mocha's should always be stirred... Have you ever had a Mocha that wasn't stirred? One can barely taste it. True, the green tea latte spoon shouldn't be used for it, but A SPOON MUST BE USED TO STIR! Look it up!

[barista lane]

I don't think that stirring mochas is a requirement, and I know that a good mocha and white mocha can be made using the "swirl" technique.

[J.J.]

Per standards, only GTL are supposed to be stired unless otherwise requested by the customers. While I do agree that drinks taste far better when they are stirred, it is not Starbucks standard to stir them.

GRTL I mean (not green tea lemonades!)

Drinks, other then GRTL, should not be stirred because there should be the least amount of contact with the drink as possible. The less contact with the drink means less chance for cross contamination.

ah, yes, the swirling of the mochas. just don't swirl too vigorously, lest it splash out of the cup, as i have done far too many times during the rush.

[Dave]

I would love to hear Howard pull warming from all the stores etc. But I dont think were going to see those kinds of changes. I think we'll see leadership movement and less retail.

[fun n foamy]

we need free internet access. everywhere i go that has it, i don't see people 'camping out' like we're afraid that they might do. i go to caribou to use their free wireless and i'm a 7 year partner!
face it, marizzocos are not coming back. can you imagine the training for the zillions of partners that were hired after they were phazed out?
this is a great move none the less. i was just telling one of my partners that i wasn't sure where the company was going anymore and was about to update the resume. now, i think i'll stick around a bit.

[Stacy]

best news I've heard in quite awhile from Starbucks

love you Howie!

stir any drink you want. who gives a crap. and use the green tea latte spoon. customers like their drinks stirred. that's all that matters.

stir only when requested (except GRTL) read the BRM. it says not a thing about stirring mochas. it changes the flavor profile and loses consistancy across different stores. also, please stop drizzling mochas and mocha frappuccinos, putting extra caramel sauce on the insides of cups unless requested and charging for a tall when a "single grande" is ordered. stop making me look bad when i do things the right way because somewhere else "does it differently." thank you.

[YEAH, I AM RIGHT]

I find the celebration here rather interesting. Yeah, Howard can help but some of you act like he is a silver bullet.

First, Howard has been part of this mess all of these years. He is engaged in the business on a DAILY basis. He has essentially approved all of the things that you seem to hate - 801s, DTs, Orange (thank you BOD), Arctic Tale. He sees EVERY promotion.

Second, Howard doesn't have the answers. He is the first to admit it. It is still going to continue to be a painful year and it will be FY09 before things turn around. And for those of you under the delusion that he is going to turn back the clock to 1995 - get real.

Lastly, Howard is going to make many peoples' lives miserable including the stores. Have you ever worked with him? I have seen him scream at people over trivial crap. People don't like him - they fear him.

Just a little reality check...

[Jake]

I work at a Licensed Store (Target) and reading that letter on the Starbucks website definitely motivated me a lot. I think one problem with Target Licensed Stores is that Target focuses too much on THEIR methods of measuring Legendary Service. Target relies on their Guest Surveys to get feedback. I think Starbucks should evaluate their Licensing agreement with Target to get it so Starbucks has more control over these stores (although they already do have a lot of control).

On that note...are there other ways Corporate Store locations recieve feedback, other than Snapshots?

TO HOWARD:

PLEASE DO NOT MAKE OUR LIVES MISERABLE! Trust me, it's been harder for us on the front lines than it's been for you. Respect and dignity! Listen and acknowledge! PLEASE Lead by example and we will follow. :)
Thank you.

[Darleen]

Lastly, Howard is going to make many peoples' lives miserable including the stores. Have you ever worked with him? I have seen him scream at people over trivial crap. People don't like him - they fear him.

Just a little reality check...

Maybe thats YOUR reality, I have never seen that.

[Joe]

Well, Darleen, what about Howard's so called meltdown at the last SSC open forum as dutifully reported by our very own little gossip machine, Pat Nerr?

[Rawrrr Barista]

How weird that I read, like most of you guys, I have had a couple low weeks following xmas, a few of you were ready to leave the company and so was I.

I am tired of incompetent store managers taking the reigns of a store, which was once a well-oiled machine, and crashing it headfirst into the ground. I am sick of SM and ASM's not working on the front lines (THE BAR) with their barista's and instead, ringing people up or getting a pastry or two every 10 customers out of the case then doing 3 hrs of "ADMIN" while listening to an ipod, while during a store rush or blackout.

I took so much pride in my job and my drink quality and speed. I studied things about Starbucks, I felt proud to be a barista. I was screwed over in my first raise, by a SM that has only known me for a month. And for all the hard work, fellow baristas and me have put into the store, we are overlooked and underappreciated.

Now what’s keeping me from applying at the MCDONALDS McCAFE right next door?

Hopefully this management shift will be for the better, and Schultzie, re-evaluates whom he is putting in charge.

[jabanga]

certainly management partners should never have an ipod on while at work nor should they be doing admin at peak times. however, if they are running a shift they should not be on bar except maybe to briefly cover a break or to double bar as the floater.

Jabanga is right! The shift leader is deployed as FLOATER! They have to be available to see all aspects of the business and cant do that on bar during a rush. Re check your deployment!

[VancouverSM]

I am a SM at a Starbucks in Western Canada. I think more SMs need to take ownership and challenge the rules when appropiate. On Jan 3rd when we lauched the Skinny promotion, one think I noticed was there was no more Bean menu. I thought this was quite sad, as Starbucks first 15 years was selling whole bean coffee and now all thats left is a small stand amounst the kd tables covered in mugs and stuffed animals. I made the decision to leave the existing whole bean menu insert in place. Rather then sit there and complain about everything, why not try and make a difference? get involved, host a coffee seminar. Dont just stand around waiting for someone to tell you coffee is important again.

I think we can all agree that Howard has a large enough net worth to retire. I think he is a man full of passion, maybe sometimes that passion causes him to get upset. When Howard was in Vancouver. BC last year, he gave a speach, talking about how un happy he is with the way things are moving, how he hates the smell of warming when he walks into a store. He's not comming back to make more money, the brand is still making huge profits. What do you think would happen if he decided to franchise? Sell our coffee at every retail outlet? Sell our coffee to McDonalds? Shareholders would make a killing. Hes comming back cause he beleives in his original vision. I suggest everyone reads "Pour Your Heart Into It" written in 1997. Its very unlifting and inspiring.
Overall, dont just stand there! Make a difference, don't worry about whats happening out of your control, own your store!

[vancouversmaswell]

i agree with you vancouversm... where about are you? i am also a vancouver sm... DM tour day tomorrow means you may have your bean menu taken down... heads up!

[Ron]

Are you serious Joe?

Find it hard to beleive you take what ner says at face value. He(or she)is far from an unbiased opinion and is clearly disgruntle.

I'm with Darleen on this one. I've been around him many times and while he is certainly competetive and passionate, I have never seen him be disrepectful to another partner in public as that post implied.

[jc]

YES!!!! GREAT NEWS!!!!

[Pat Nerr]

"Well, Darleen, what about Howard's so called meltdown at the last SSC open forum as dutifully reported by our very own little gossip machine, Pat Nerr?"

I've seen a few meltdowns in my day... even besides the "poison in the well" speech... he's a passionate person and a little over-reactionary sometimes... some find it endearing. Maybe that's what's been missing... someone to scare the crap out of folks every now and then... Bottom line is that the company didn't get where it is from just Jimmy D making decisions... it's been a culmination of like-minded, bottom-liners within the company...

Howard being back in the end office in Executive row is just the emotional fuel the company needs to get things moving in a better direction... I feel sorry for his assistants... they're gonna be busy for the next little while.

[Darleen]

Well, Darleen, what about Howard's so called meltdown at the last SSC open forum as dutifully reported by our very own little gossip machine, Pat Nerr?

Taking people to task is one thing Joe. Of course he is going to do that. I am speaking about him being disrespectful of people, I have never seen that side of him nor do I ever expect to.

[sPyWaRe dOwLoAdEr]

If Schultz would like me back as a customer do these things:

1 - Stop playing that godawful "HearMusic" soundtrack. It features some of the worst, most bland, adult contemporary pap I've ever heard. 10 years ago, a stop inside Starbucks was met with the beautiful sounds of classic Jazz (Nat King Cole, Ella Fitzgerald, Chet Baker, the list goes on). That made for wonderful atmosphere.

2 - Keep it real: make the baristas work by using manual machines (La Marzocco). I'd like to walk into a Starbucks for the first time in ages and inhale the scent of COFFEE.

3 - Get rid of the burned drip coffee.

4 - Hire someone to sweep the cigarette butts left outside behind by customers AND employees.

Hope these suggestions are heard and taken to heart.

[VancouverSM]

i agree with you vancouversm... where about are you? i am also a vancouver sm... DM tour day tomorrow means you may have your bean menu taken down... heads up!

Hello, Im actually In Nanaimo, on the island. As far a DM tours go, I am confident that I could convince otherwise. Long live then beans!

[Tim]

I came into my store today to find the breakfast sandwich menus up in place of whole bean -- looks like my DM paid us a visit.

"support customer-focused initiatives" What are those? I thought the customer's initiative was to have the best cup of coffee or coffee drink; something that was never mentioned in Howard's memo. Simply, if they want to save Starbuck's bring back the flavor, the rich taste, the aroma, all that make the Starbuck's experience. And, get rid of those awful, weakened, bland, instant packets. Isn't that