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May 05, 2008

A reader asks: Why are "great leaders" leaving Starbucks?

A Starbucks Gossip reader writes: "How about a discussion about great leaders like Gregg Johnson and why they are leaving the company? This guy did more to build the culture, develop our partners, make our stores run better (with programs he led like "Simplify Our Stores"), and personally mentored scores of partners...other than Dave O and HB, I can't think of another Starbucks executive who more embodied the mission, values, and guiding principles of Starbucks.

"How could Howard and the "dream team" let him go?  Did they even try to keep him? What about launi, sheri, stanley, and the other great leaders who have walked out the door in the past two months?  Is there going to be anyone left who cares about store managers and baristas?"

STARBUCKS MEMO REGARDING GREGG JOHNSON

From: Partner Communications
Sent: Thursday, May 01, 2008 10:22 AM
To: Starbucks Coffee Trading Company; DL - Field Offices (Intl); DL - GC - All Partner non CW and PSP - Canada; DL - GC - All Partner non CW and PSP - US; DL - GC - VP And Above - International
Subject: Organizational Announcement: Thank you, Gregg Johnson

Thank you, Gregg Johnson

It is with regret that I announce that Gregg Johnson, senior vice president, Global Business Systems Solutions (GBSS), has made the personal decision to leave Starbucks. His last day with the company will be Friday, May 2.

Gregg has been a Starbucks partner for almost 13 years. During his tenure, he served in a number of business leadership roles, including vice president, Southwest Zone; senior vice president, Licensed Stores; senior vice president, U.S. Stores; and senior vice president, Emerging Businesses. Since 2005, Gregg has been co-leading the GBSS program with Karen Metro, vice president, GBSS.

Gregg is known for his strong leadership skills and has served as a mentor to numerous Starbucks partners. Please join me in thanking Gregg for his contributions to Starbucks. We wish him all the best in his future endeavors.

Comments

my memory of greg was whooping it up with my district at the leadership conference in orlando and being asked by the guy next to me where we were from. i told him and started chatting with him and he introduced himself as senior vice president. i had never heard of him at the time.later that night it was announced that greg had just been promoted to that position. that was also the conference where jim was introduced to us as the new president of retail north america. the thing that so impressed me about gregg was the way he was just sitting amongst us being one of the gang and it seemed to me i just as easily could have been chatting with any sm or dm as opposed to the svp of retail north america.

What's that, Howard Schlock? I can't hear you. I smell a bunch of rats jumping ship.

Turnover at Starbucks has been really high, from overhead to in store lately, in our district turnover is up 15% over last year and is going to be higher this quarter, being that we just lost 16 partners in the last THREE weeks. They are just all quitting, no matter how much Howard wants it to be like it was, it never will be. Starbucks can't keep people like they did before when Starbucks becomes a 'job' Starbucks isn't the only one with part time benefits, 401(k) paid time off, and others, also their starting pay is not much over minimum anymore, at least here.... Starbucks set out with a great work environment, everybody else caught up, so what's special now?

This insider stuff, more than anything else, is what tells me sbux is facing some serious trouble. Look, it's sometimes bad, sometimes good to lose various faceless middle managers, sub-regional heads, etc. When you start losing internally recognizable 'cornerstones' of your brand ethos & culture, that's when you know things are in trouble. My hope is that this is an abberant outlier rather than a trend of shedding highly visible long-term core upper management personnel.

Okay, now, just to play the devil's advocate: Is it necessarily such a bad thing that someone under whombthe company went from absolute market dominance to 'dark skies on the horizons' is leaving. It seems like his brand of magic worked at one time ... but it also seems like it failed to work this last time. Maybe new blood isn't such a bad thing ...

Greg is leaving because he's heading out from a sinking ship.

Starbucks, as a company, is a nightmare right now. Nothing it does will save it, less a huge amount of innovation. That and some true, honest customer service initiatives starting NOT with new promotions, but with cracking some heads. I'm sick to death of the horrible experiences people seem to have (myself included) each and every time they walk into a Starbucks.

Read back about the HORRIBLE customer service situations customers are complianing about regarding the poor execution and understanding of the "huge" rollout of registered cards. No barista seems to understand how it works.

It probably doesn't help that, just yesterday, as I was reading the paper and drinking a coffee sitting in the store (something I rarely do) the two baristas behind the counter were going on about how the new mint mocha syrup is "foul" and that no one in their right mind should drink it. How can Starbucks sell a new drink when their OWN workers are talking like this in front of customers?

Those things are just tip-of-the-iceberg issues, too. This company is pretty much doomed for the next few years, until Howard steps back down and they hire a competent leader who tries to move FORWARD instead of recreating something that will not work in its current form.

Greg, simply, doesn't want to be part of a failing organization. That's all.

Reason 1- stock options now meaningless

Reason 2- it's not the sweet resume fodder it used to be

"Look, it's sometimes bad, sometimes good to lose various faceless middle managers, sub-regional heads, etc. When you start losing internally recognizable 'cornerstones' of your brand ethos & culture, that's when you know things are in trouble."
Unfortunately, the only area we're not losing people in is the "various faceless middle managers, sub-regional heads, etc." There are so many external-hires running the corporate offices that our culture has been completely obliterated. My DM has yet to refrain from cussing while visiting my store. He tells me to get over this "touchy-feely" crap and tell my partners to "get their s*** done or else." How's that for a great work environment? That's not the mentality that has built our brand reputation.


After reading the article, I'm glad gregg is leaving. Sounds like he doesnt have his heart in it. He doesnt want to work hard, create idea's, show his strong leadership skills, work to make SUB what it was once. Maybe he is very much part of the problem. If Gregg is so good, stay then Gregg and help make SUBX what it once was, when you started. In my previous Banking career, a SVP is a dime a dozen. Gregg, is easly replaceable. He cant stand the heat, helped create poor result's, that he couldnt help or deminish. Probably made too much $ for his pay. Gregg is not a leader at all. Gregg is a quiter, Period! Again, glad he's out. Now Howard and company will locate a much steller replacement. One who can make a difference, has a sense of urgency and will take action!!!

also,
" How interesting "

I challenge you...As you stated- what other companies can provide med/dental/vision, 401 from a part time job? You made a statement- back it up with facts!!! And not just gibberish.


Somebody already got it:

rats
sinking ship


jim


My DM has yet to refrain from cussing while visiting my store. He tells me to get over this "touchy-feely" crap and tell my partners to "get their s*** done or else." How's that for a great work environment? That's not the mentality that has built our brand reputation.

While crass, it's effective. I mean, Starbucks DOES have an issue with dealing with feelings first, then actually doing something.

I'm sorry, but we don't need to have a summit when it comes to cleaning the condiment bar. Just get over there and clean it.

I wouldn't place all of the blame on the your district manager. The work environment, while not optimal because of his rough management style, is also impacted by the fact that your store's staff does need to be touchy-feely and just needs to get the work done. You all are forcing your manager to be the bad guy because you all won't get down on the floors and scrub them, as is expected of you.

This company needs an infusion of new blood; the current stock has ruined and is continuing to ruin and drive Starbucks into the ground.

Maybe it's not a bad thing to act more like a quick-service restaurant. At least they're profitable right now. It may not be glamourous, but for as much as you want your job at Starbucks to be different than the one at McDonalds, it's not. You're no better or worse than that harried woman behind the counter at McDonalds making french fries and talking on the headset. McDonalds is doing their shareholders a huge service by being profitable, and Starbucks needs to do everything possible (even including cutting pay and benefits to be more in line with their industry peers and other cost-cutting measures) to drive profitability so their shareholders are happy.

So, maybe your DM is doing your company a service: stop talking about doing it and just do it.

"Bitching"

I love how 90% of the comments about Starnucks are based on "this one time, I was at this Starbucks and the staff was rude. MAKE BETTER COFFEE STARBUCKS GET BETTER EMPLOYEES!!!!1111"

Go to a better Starbucks. Not one customer will complain about mine. They get all kinds of gifts from the community. It's amazing.

ANON - Couldn't have said it better myself. The only way we'll get through this is by working hard. So let's get to work.

As I have said to many of my peers, we need be more creative in our way of interacting with customers. Where some people might prefer to go to a place where you are never recognized and you are viewed as a number, I would rather know my customers and build relationships from there. Life customers are the key to Starbucks success, lets really try to know who they are and let them know us. My store is one of the most profitable in the area and yet we are nowhere near the fastest. We take our time and make sure that every customer gets exactly what s/he wants.


Anon- Who are these industry peers you talk about. I don't know of one single great competitor we have that doesn't have benefits. Also, who are you to say that my insurance should be cut, I'd like to see how you would react if the company you worked for told you that you are not worth their money so the benefits are cut and your pay will be cut in half. I do not think you would take it so lightly. If you really feel that people don't need these then maybe you are invested in the wrong company, why not go invest in something more your style...something like Sonic, perhaps.

... or maybe he got caught up in a big IT project (GBSS)? That's enough to drive any good business leader batty.

spanishguitar the mint chocolate syrup IS disgusting. i was still with starbucks the first time it rolled out. while the partners should not be talking badly about it openly, i will say that i gave my partners permission to steer customers away from it because it tasted so bad. we were supposed to be building trust with customers and 95% of them found it to be disgusting, too. being "genuine" is supposed to be one of the cornerstones of starbucks customer service. recommending they drink something you find disgusting is not genuine.

It was only a matter of time. If you read between the lines of that "goodbye memo", you'll see... "Gregg was frustrated at the way change was enacted and both partied decided it was best for him to leave... He's been offered several things by headhunters in the last few months and he decided it was time for him to try something new and uplifting for a change. While we're pissed that this looks bad for us that one of our key leaders is jumping ship in this key time... we're pretty much bent over the barrel and left to take it like "men"... That SOB... we're gonna miss him"

That's what I read at least... Gregg was a good guy... as evidenced by his role in the Duetto video.

I challenge you...As you stated- what other companies can provide med/dental/vision, 401 from a part time job? You made a statement- back it up with facts!!! And not just gibberish.

GEEZ... let's see.... Lowes, Home Depot, Gap, Banana Republic, Old Navy, Albertson Food, Whole Foods, Wegmans, The Container Store, most hospitals, Fed Ex, UPS, USPS, should I go on?

Point is, they lost their corner, while in a recession with an extremely aggressive growth plain.... this equals doom... innovation is key right now, and we need to pull something out of our asses to make it work, and these half assed promos aren't going to do it... remember the top pot caramel vanilla doughnut? This shows how many little details went overlooked... something as simple as getting them to the store.... if they were not level they would stick to the top of the box, and be destroyed... this is something that they should have thought about before they put it in all our promotional materials... they need to take a step back, a deep breath, and focus on the store, and quality promotions.... not this mint crap, or even the frappuccino which I am kind of excited about, as long as they don't F IT UP like they did with the honey latte, seriously, put honey in a latte, its sooo good, what the heck is up with the glazed pecans?

Another one bites the dust... who's next K.L., T.A., M.G.????

JJ,

Thanks. You summed it up right there quite well and that's exactly why I mentioned rats jumping from a sinking ship. I don't blame Mr. Johnson for leaving and it was his choice to do so. He must have seen something inside corporate headquarters that made him think twice before believing Howard's ability to turn the company around.

He saw and hear things he may not have thought were the appropriate direction for Starbucks and left, in addition to other job offers that gave him a way out. I have to say that Mr. Johnson probably did the right thing.

In fact, Howard Schultz contradicted himself. A year ago, he asked Starbucks to be 'smart with their money'.

So what did he do with it a year later?

He bought the Clover company. Why did'nt he just use that money to convert the espresso machines back to manual format? He should have gone 'old school' and cut out the fat from a lot of things.

I hate to say it, but the LaMarzoccos, as difficult as they were to maintain, pulled better shots. Despite the tendonitis which goes with the territory, I prefer the old machines and Howard "Schlock" did'nt think of it. I do not like the Mastrena design since it's too similar to the Verismo and a continuance for the breeding of 'push button' monkeys.

In fact, if people want the Clover once it reaches popularity, how will that machine handle the long lines if a lot of customers want it? What's that Howie? You did'nt think of that?

TO; HOW INTERESTING:don't know if your'e a partner of starbucks or not but, i have been a partner for a long, long time and let me tell you about carpal tunnal syndrome!!!! i used the manual espresso machines for years and believe me when i say my right arm from my wrist up to my shoulder hurt like HELL!! when we switched to the other machines, my carpal tunnal finally got MUCH BETTER but still i have occasional bouts of it, unfortunately!! i know three partners who indeed had to have surgery for this particular problem. one is still employed with starbucks, the other two sued starbucks. one got a nice size settlement. starbucks listened to partners complaints regarding their carpal tunnal, so there was a time when partners could only be on the bar for 30 minutes and then slide over to another position. so with the different machines and new deployment methods this became a non issue. and overtime the regular customers accepted the taste of the espresso from the new machines. maybe small mom & pop coffee shops can get away with the manual machines but not starbucks with the volume of shots that are pulled etc. etc. i wish people would stop talking about those "old" machines because they are not coming back!!! how humorous you are in stating that i am a "push button" monkey, i'll have to remember to bring a banana when i work next for my break!! ha ha the more successful a company is there will be more criticism!! people will find fault no matter what starbucks does. oh well, such is life. onward howie!!

The espresso shots from the manual machines were far superior to the current 'push button' machine. I'm hopeful the Mastena (sp?)that is to be the replacement will pull quality shots. While I'm very sorry about the carpal tunnal, I noticed when the manual machines left the stores, that's when Starbucks started having serious problems.

JJ,

My wife works for the container store and I have to laugh myself to sleep every time i think of the 'benefits' they offer. You might wanna research the benefits in question before posting. Thanks

hi. i beg to differ with espressx but i don't think going to manual machines is what sent starbucks into a tail spin. those espresso shots were'nt perfect. those shots were only as good as the barista doing the work, there was always a chance for human error!!when the manual machines came out i worked at a store for two years that was just slammed all day long, it was all about SPEED OF SERVICE, get those customers in and out. there was no way we could do the volume that we did with the mastena(sp). that was 8 years ago, the serious problems started when starbucks overbuilt and became too commonplace, you can't stay at the top forever, i am still a happy partner and still believe in howie !!

OOPS- actually i meant the old machine was a La Marzoccos not mastena, whatever, ha ha

Have the few posters left on this site been poisoned with something? It looks like we have a few viral rats, who truly are putting this company in jeopordy. You all have no idea how many partners you are negatively affecting, by needing to "vent" on this website. None of the rest of us feel this way, and yet when I read this thread, I'm not surprised that our customers may come to the conclusion that we are a company full of egos...

Please stop spilling the beans, complaining (in a nonconstructive way), and venting. Ask questions, debate policy, exchange ideas, I'm all for it. But remember that you ARE the brand when you click "post" comment.

It's kind of scary when people like that leave...

Dear J.J.

GEEZ... let's see.... Lowes, Home Depot, Gap, Banana Republic, Old Navy, Albertson Food, Whole Foods, Wegmans, The Container Store, most hospitals, Fed Ex, UPS, USPS, should I go on?

I challenged "how interesting", if your the spoke person, you both lost. 2o hrs a week with what SUBX provide's towards the insurence's? Where did you pull this info from? Lord have mercy on you!! Wake the heckup, dude!!!!Your sniffing that ground coffee bean line, again.

smokey- if you got carpal tunnel, it's because you weren't trained properly. it's all about body mechanics, and if you tamp properly, you're golden. I've been pulling shots on a lamarzocco for 8 years now, and my wrists, arms, shoulders and hands are find.

user error causes carpal tunnel. get better training and you'll be fine.

TO Z: unfortunately i have to disagree with you. my carpal tunnal was due to REPETITION movements. tamping, holding milk pitchers, over and over again for hours at a time, FOR YEARS!! haven't you heard about grocery checkers developing carpal tunnal , its REPETITION movements. are you going to tell a checker it's their body mechanics??? get real... where do you work at some tiny mom and pop coffee shop that tamp and steam milk a couple times an hour? ha ha i don't need better training because starbucks got wise and wanted to have a healthy, working environment for all their thousands of partners so they put in the so called "push button machines", thank god. onward howie!!

smokey i certainly worked with many baristas who worked in very busy stores for many years and never developed carpal tunnel syndrome. as a matter of fact i never worked with one that did. i also do strongly believe that the deterioration of shot quality due to the roll-out of the verisimo has been a major factor in the weakening of the brand. i believe it led the company to roll out the endless stream of sickeningly sweet promo drinks to cover up the lower quality of the espresso drinks which really deteriorated the brand. i understand you were afflicted with a medical malady as a result of using la marzoccas, but that does not mean that the decision to do away with them hasn't been a major factor influencing the performance of starbucks in a negative way. personally, i wouldn't buy an espresso drink at starbucks anymore. to me, they just aren't very good.

If Gregg Johnson has been with Starbucks for 13 years, has he not been part of a number of decisions that diluted the brand and deteriorated it? In 1995, Starbucks was a totally different creature than it is now. Was he a decision maker in any of the events that helped create the more 'souless' and 'less theater and romance starbucks'.

You can blame ripping out La Marzocco machines as part of the problem, but Starbucks' problems are much more complicated than that. (1) they made flavor-lock packaging totally wide-spread, eliminating the smell of coffee from their stores (2) They licensed their stores to many grocery stores, large chains, and so on, causing brand dilution. (3) They did rip out La Marzoccos, though I think many customers don't have a sophisticated palate enough to tell a difference: Nonetheless, customers want to see a barista pull their shots. (4) They spent a lot of time developing product lines that have nothing to do with coffee - causing clutter in the stores and (5) because of the very rapid growth, it became extremely difficult to control that many employees, and the starbucks "experience" thus the goal of legendary service and enthusiastically satisfied customers became harder and harder to maintain. It's just very difficult to control something that large.

smokey- you are partly correct- carpal tunnel is about repeditive motions- it's because you're repeating the WRONG motions.

if you were trained right you wouldn't have gotten it. the fact that others in your store also had carpal tunnel problems only strengthens my assertion that someone was training you incorrectly.

if you were trained correctly, this would be a moot point.

Z, i would have to disagree. There is a nerve that travels down a main (carpel) tunnel in your hand, and through this tunnel are 9 tendons. Anytime one of these tendon's flex, it causes the nerve to compress. Even when pulling shots the right way, you are repeatedly flexing these tendons. Do this for 4-5 hours a day, for several years (on a manual), you get the point.

It is true that some people are more suceptible than others to injury based on repetative motion. I think training has little to do with it- whether you're doing it wrong, or doing it right, a certain percentage of the population will become injured because of their physiology and family history.

Long-time executives leaving a successful company is commonplace. Think about it, these execs work hard putting in 10+ years to build a successful company. Once built, once successful, the thrill is gone. They begin to realize that it is better to find something else that thrills them than to become complacent.

Also, when execs stay for a super-long time at a company, they become less desirable by other companies. What I mean by this is other companies will have to “deprogram” these execs to adapt to a different business, a different culture, a different political game. It’s tough.

pride- starbucks has a disproportionate number of carpal tunnel cases because of poor training. sure there are some who are predisposed, but I HAVE been pulling shots, manually, repeditively, for 4-5 hours a day (actually 6-7), 5 days a week for a combined total of 8 years, and I have had not one problem.

why? I use correct body mechanics.

training has EVERYTHING to do with it. starbucks grew beyond it's ability to train employees properly- to make a decent shot AND to avoid injury- which is why they had to switch to super autos.

carpal tunnel syndrome is not a foregone conclusion to working on a manual machine, grinding and tamping manually. it's just the excuse starbucks gives you to dumb down your coffee machine and push more drinks out the door faster.

if starbucks was actually serious about the coffee they would have nothing to do with super autos.

I challenged "how interesting", if your the spoke person, you both lost. 2o hrs a week with what SUBX provide's towards the insurence's? Where did you pull this info from? Lord have mercy on you!! Wake the heckup, dude!!!!Your sniffing that ground coffee bean line, again.

wow... if I could pull a cohesive sentence out of that I would respond....

Nerfebarista, trust me, my medical, and dental isn't anything amazing... and I just lost a crap load of money with SIP, and really, the only benefit that I really think is awesome is that Sbux matches my contributions to my favorite cherty.

Oh, and to all you La Marzocco freaks out there... no offense really... but we aren't in the place we are because we now push a button. We're here because the focus turned away from what makes starbucks... well... starbucks! TASTE of beverage, whether it is the SUPER SWEET peppermint white mocha, or the 'fantastic' frappuccino What our regular customers come back every day for is US! The barista, shift, ASM, SM, all on the front line making their experience great, nobody comes for the god shots made by skilled baristas that practiced over 10 years in Italy, they want a decent great flavored drink, made with good espresso, and a smile. This is where the focus needs to be, and the 17 million dollar meeting wasn't needed, or the pike place roll out meeting, or even the frappuccino meeting, all money down the toilet... make it an action item, and teach on the floor.... no problem. The taste is there now, we just need to pull focus off of the disgusting new promos, and onto good, quality products, and the existing, tasty core beverages.

What we need also is a little PRIDE in our job... with all the negative stuff in the news, its hard to have pride in something you feel like you are defending all the time.

TO Z: well here we go again! this is so funny really but- in my previous post way up there, i stated that i knew of three other partners that had the carpal tunnel problem ( i never said they worked in my store) you stated that we were trained incorrectly. well, that's interesting because we all worked at different stores and at pretty much different times. so, i guess we were all idiots and just couldn't get the "proper" training. ha ha

I knew Gregg really well and can say he was one of the best, most well balanced, committed leaders the company has ever had. When something needed to be done that no one else could do, he was the go-to guy. he knew how to build a team, how to develop leaders, and how to get results better than anyone i've ever worked with in 20 years of retail. In addition, he "bled green", loved the company, lived the values, and was a true servant leader. He would also always stand up when he felt a decsion would negatively impact the culture.
Starbucks is lesser without him. I hope that it was truly a "personal decision" and that he wasn't forced out

Z: Try doing nothing but pulling shots (as most sbux baristas would have done during a major rush - the bar is compartmentalised during busy periods, or at least is now) for three, four hours at a time for a few years. You will develop pain associated with RSI/Carpal Tunnel. Yes, there are ways of minimising the risk, but it'll be there.

melody believe me i was not trying to say that the removal of la marzoccas was the only reason starbucks lost its way. i know there were many and your list was very good. i was actually surprised to see such an in depth list from you who tends to be so much more of a fanatic than a detractor...

"I challenge you...As you stated- what other companies can provide med/dental/vision, 401 from a part time job? You made a statement- back it up with facts!!! And not just gibberish"

Just off the top of my head

Costco
REI
The Container Store

I have pulled shots on a busy bar for hours on end on a machine that requires you to manually grind and tamp (a lamarzoco linea most recently) for, oh, about 8 years, all combined.

my wrists are fine. my arms are fine. my shoulders are fine. my hands are fine.

I'm telling you, if you were trained correctly, you'd be fine too.

JJ

You cannot rely on customer service to bring business into Starbucks. It is the quality of the drink first and foremost. Starbucks forgot that and now the company as well as the customers are paying for this serious lack of focus.

To Geez or whomever thought the LaMarzocco's were'nt an isolated issue, let me clarify. I used to be a partner back in 1999 and throughout the years after that. In the early days, I was exposed to the LaMarzoccos and did have some RSI.

Because of the RSI, I was involved with working on computers and graphic design on my other job. However, the truth is that RSI can be minimized if body motions were observed properly and knowing when to 'slow down' by rotating partners.

My view on the LaMarzoccos making better tasting shots are true and that has been my experience. The reason you had RSI is because when customers starting coming in large droves and the lines getting longer, you were expected to crank drinks out in 3 minutes each with the old machines.

I was lucky enough to have a store back then to have very thick and heavy floor mats (remember those?) before Starbucks rolled out the lighter ones.

When I got home, I would take a pain pill or ice it, if it got worse. The secret was to give your arm a rest on your off days and use a wrist brace, if needed.

Initially I used to complain about the RSI, but then I realized that, it does go with the territory. It's expected. Keep this in mind that if the company had slowed down and if the lines were not that busy, you would'nt get that much RSI at all from the old machines.

However, putting your hand on a blending machine does contribute to the problem because if you hold onto it, the vibration of the blending effect will aggravate your medial nerve. Including, tamping the espresso, lifting the milk pitcher and holding it, etc.

The point was that I don't think the autos are the solution and don't evoke the sense of craft making at all. I'm aware the Mastrenas have timers now, but are they going to go to 18-23 seconds limit?

That's why I think Howard should have gone 'old school', not necessarily LaMarzoccos but with an upgraded version of the manual with better ergonomics. How hard is that? Starbucks had the moolah to go that route to retain the high quality espresso making process. I can tell you from experience that the espresso tasted much stronger than what the Verismos were pulling.

But upgrading to a new manual machine is not impossible if they had taken the time to correct the ergonomics to reduce the RSIs and cut down on the grinder noise by using special filters to contain the noise like a silencer. The technology is out there. It can be done. The Mastrenas, if I'm not mistaken, are from a Swedish company while the LaMarzoccos are from Florence, Italy. The latter is a smaller company but they focus on quality.

That is old school: http://www.lamarzocco.it/indexb.html

I remember we did'nt have to use the ice cups but rather an ice scoop to make the ridiculous frappuccinos. The ice scoops were made of transparent plastic. It was the quickest way to put the ice to the first line on the cup without having to resort to those 3-colored ice cups for each size. I found that ridiculous.

We used to have the Tiazzis. A far better alternative than the Fraps. Why did'nt Howard THINK of bringing those back and reduce the other frappuccino products?

I also did not say the changing of LaMarzocco's are solely responsible for the decline in quality but it played a huge part of it. The more profits the company demanded, the more pressure they put on the bottom line and this is what caused all that pressure to build at the Espresso Bar to meet the quota for the long lines.

It is the company's fault for 'catering' to the McD's demographics for 'fast coffee'. Espresso drinks were not meant to be rushed out, but regular drip can be. Starbucks should have cracked down on the customers by educating them even more.

I even remember the small white passports for customers to take home and gloss over coffee alternatives. Every chance I had, I gave them one for free when they were looking to buy beans or drip coffee.

Educate them. But somewhere down the road, Starbucks got lazy and did'nt advocate it because it was too busy screaming " Mo' money! Mo' money! Mo' money! " without thinking about quality.

Do I think Howard is going to pull this off? I doubt it. Buying the Clover is an intriquing idea but also contradictory to what he was trying to do. It's nothing but a mechanized version of a french press done in quicker fashion. It's a nice invention, I'll grant them that. In the end, what happens if you have a long line clamoring for the Clover? Scary, is'nt it?

Go buy the book Fast Food Nation at: http://www.amazon.com/exec/obidos/ASIN/0395977894

You might learn something new. Especially you stockholders.

By the way, when the Verismos starting cropping up all over country, I noticed the training classes became less frequent. Did you all notice it?

If Starbucks had kept their training classes up to par and continuing that program while attaining the manual machines (with new versions if they went that route), the quality would still have been as good as it was.

Unfortunately, the company bent backwards for demanding customers, asking us to kiss a$$. The customers got ruder and more obnoxious. Along the road, Starbucks became a commodity and it already is because of being a publicly traded company on....

WALL STREET.

Starbucks is now Wall Street's b*tch. The company should have stayed private back then, don't you think?

So truly, how can Howard revert Starbucks away from the commodification of its business and to a niche industry? He will have a b*tch of a time doing this. The only way Howard can do this is by dropping out of Wall Street or going back to private (there are laws and regulations for this to enact this process) to ensure better control over the entity.

Sadly, the reality is that the company is broken down. Howard needs to cut out the fat from the middle management which slows down the communication between the bottom and top line.

It is Howard's fault because he is approving ideas and corporate policy created by the people in the boardroom that don't seem to work well.

And I'll be honest. Howard's decision to shut the stores down for 3 hours for re-training was very embarassing to hear. It's definitely a publicity stunt that screams "Oh, just you wait! Just you wait and see! We're better than McD's! *huffing* and *puffing*".

They should have kept store operations going and just quietly re-train partners behind the scenes by rotating classes.

DUH, Howard!

I can make an analogy between what's going on with the Bush Administration not listening to the American people which is almost similar to corporate executives playing "deaf" on us. That does happen because they get so blinded by other things to the point where things fall apart.

I think it's interesting that everyone sees Verismos as the "devil." A bad drink is a bad drink, regardless of the machine it's made on. Calibrating shots and steaming milk - both seemingly lost arts - are @ the root of the quality problem. Going back to manual espresso machines will NOT fix that problem.

As for Gregg Johnson leaving...I was one of those "rats" that deserted ship 3 years ago. I woke up one day and decided I had become something that I didn't want to be: a food service district manager. I was definitely a bit "delusional" and convinced myself that it was about the brand and the experience. But my vision cleared and I could see where things were headed.

Everyone that is left is saying it is all about compliance these days instead of building a brand, a business and partner/customer relationships!! So sad!!

How Interesting:
I enjoyed reading your post. I feel the same way. All business care about profits, but publicly traded companies seem to be the worst. I think you're right, this is what Starbucks has become.

Mr. Shultz has a great opportunity to change a lot of things since he's returned as company president. I just don't feel like the changes he's made are really doing anything right now. Of course, it's just as important to give some changes time, but I think (and I'm sure many partners and customers would agree) that we need some serious changes right now.

We need changes that positively impact customers and store partners not the Stock Market or shareholders. I thought our focus was on people. At least that was what I was taught when I signed on to work here.

I've been with the company for a while now and we were doing just fine before all these crazy changes were put into place: warming, sbux card benefits, customer voice surveys, drive-thrus, ecosure, 0% labor variances, etc.

Gregg Johnson is a fantastic leader that has been a mentor to people both within Starbucks and out. Howard is a fool for letting his go. He needs him.

Everyone grab a bucket. We all have some bailing of water to do.

XSBUXDM,

How many years did you put in the business? Have you had experience with the LaMarzoccos for at least 5 hours a day, 15-20 hours a week tops? You may think manual machines won't solve the problem and that it's the person behind that counts.

I know that line of thinking but it's not just the person nor the machine. It's both. How the car operates and function rests on how responsible the driver is and how safe the ride and gas mileage rests solely on the manufacture of the car itself.

Same thing with the machines. It must be a symbiotic relationship. But it has been my experience that going manual creates a 'human touch' to each drink.

In the end, calibrating a Verismo is an important task but doing so won't make it come any closer to how the espresso tasted in the old days.

Going manual will force baristas to learn the skill. Let's say the Starbucks partner moves to another country (where there are NO Starbucks around) and he/she needs a job at a coffee bistro that has manual. Do you think the person's experience with Verismos is going to save him/her life?

Now you see why Howard is shooting himself in the foot?

It should read "save his/her life". I corrected it.

I spent 8 years in the stores... 6 of which I spent a considerable amount of time on the bar (La Marzocco). I never had an issue... but then I followed the safety instructions laid out in the training. I never had a partner in my stores have an issue either... but then maybe it's because I rotated by bar folks out regularly...

nobody likes a bar hog...

"How Interesting" -

10+ years with SBUX (1994-2005) all of them as an SM/DM. Started as an SM with La Marzoccos, and ran a $30k+ a week store - which was big volume @ the time. So yes, I had PLENTY of time on La Marzoccoas "back in the day." I remember the days of the coffee stained hands, no cup marking (and I still remember how to turn cups for cappuccinos, lattes, etc.), grinding COD, brewing frappuccino base, the "original" white chocolate mocha (where you melted white chocolate chips in a cup) a little too well.

Anyway, and maybe I didn't make my point clear, lots of people come across as thinking that going back to manual machines is the answer to all of SBUX problems. However, there are SO many that are SO much bigger than what type of machine is used to brew espresso in the stores.

If the machines were completely push button like you find @ WAWA or 7-11 then I would agree with your comment about the "human touch." However, baristas are still responsible for making a drink to order, steaming milk, etc. A drink still gets "touched" an awful lot along the way. And baristas ultimately are responsible for what they put in a cup and hand off to a customer.

And I stick to my original statement that a bad drink is a bad drink, regardless of the type of machine it is made on: people got bad drinks when the stores had La Marzoccos too.

Even with the problems we have, nobody at the top realizes how many stupid community service events, potlucks,team building exercises, and general waste of our time and company money events are happening from the rdo level downward causing so many to ignore their business. Many of us are trying to make changes, but get distracted and pulled away whenever our dm or rdo's decide that it is time for yet another "meeting" or "roll-out". Any 5th grader could read and understand the key items from these events in about 5 or ten minutes. Too bad that higher ups want to take responsibility for teaching those below them all the secrets. Good luck Greg

Starbucks was great, but all external dms working for nothing but a promotion robbed me of the company I used to adore!
They are hiring fast food dms, and thats what they are getting now. All focused on the wrong things, walking around in their fancy button down shirts testing the windowsills for dust. I cant tell you the last time I saw a dm do a coffee tasting! Im so happy I left, but I feel bad for the mess Howard has to deal with.

As a representative of a Licensed Store, I'd like to put in my two cents!
Since December 2007 Starbucks has done nothing for Licensed Stores but send HUGE 'auto ships", clear out their warehoue on us and make us look 'un' Starbucks in our customers eyes.
Go into a Licensed Store in the good ole' US of A and try to get Pike Place. Sorry... we can't get it. We are brewing through all the 9 oz House coffee that was ground for company owned stores. We use 5 oz. coffee in our brewers BUT Starbucks fixed all that. They had us buy 3 plastic containers and THEN made up a 'spoodle' to scoop the coffee out of their plastic containers! We open the 9 oz, put it into the plastice containers and spoodle it out.
We look like Schmucks!
Licensed Stores have to meet ALL the requirements that Company owned stores meet yet we are now being treated like...Schmucks! There is practically no way a Licnesed Store can make a profit and I feel it is now being planned this way.
I was asked recently by a Catagory Manager, if I had 3 wishes what would they be. My reply was.. "I'd roll them all up into one and say we get ladders take down the Starbucks sign and run our own coffee kiosk!"
I feel as if Starbucks is pushing the Licensed stores to either pull out OR fail. Our fault because they prostituted themselves? Don't think so.

EX MANAGER,

I agree that some external DM's fall short when it comes to the six guiding principles. However, I must say that many of them have truly embraced the vision of what Starbucks was and could be again. I think it is unfair to hate all externals even though I think there should be less of them.

hey all you starbucks haters: gee guess what? CARIBOU COFFEE-nations 2nd largest coffee chain reported a wider 1st quarter LOSS due to consumers curb spending because of difficulties such as escalating food costs and eroding credit. has anyone ever heard of the R WORD - recession? so STARBUCKS PARTNERS , just settle down, relax, and the starbucks legendary experience will live on! HAVE A LITTLE FAITH!!

Smokey,

Have you been smoking stuff today? It's not just Caribou, it's YOU. You are on recession for your gas, food, beer, and everything related to the economy.

Starbucks IS a sinking ship. Mr. Donald was given the "STFU money". Gregg jumped ship seeking greener pastures.

Howard....is heading to psychward.

HOW INTERESTING that i disagree with everything you post, ha ha. my point is it's not just STARBUCKS with traffic down, stocks down, etc. even CARIBOU coffee company is down. get it?

There is no recesssion (yet, at least). A recession is a downturn in the economy for TWO consecutive quarters. Look it up, if you don't trust a poster here. Perhaps, there will be recession in the second half of the year, but not quite yet.

Smokey,

Prove to all of us that Caribou is on a recession. Seriously. Otherwise your defense to sway the Starbucks Haters will be for naught.

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