Analyst expects a weak fourth-quarter for Starbucks -- even with the new offerings

An analyst predicts that same-store sales will decline by a percentage in the mid-single digits for the quarter, which ends this month. Although Starbucks launched several new products during the quarter, "we do not believe the introductions were enough to meaningfully bolster sales against macroeconomic realities," she says, predicting that Starbucks will earn about 13 cents per share compared to 21 cents in 2007's fourth quarter. || Analyst expects weak 4Q sales trends at Starbucks

Comments

[givemeabreak]

I'm Shocked!!!!!!!!

[Ken]

Wow, and I could have sworn that offering oatmeal was more then enough to turn things around, wow, I can't hardly believe it!

[Ephlan]

OMG! not even protein lattes can save us now!

[jim]

Come on, we're lucky to sell more protein lattes than you can count on one hand on any given day. I think our best was 5 for the day. Even with sampling it, people don't want it. No-one wants the "dinner roll" either. But with the oatmeal we are meeting/exceeding goal and we are running out of the other new offerings on most days...sometimes before noon!

[Andrea]

are there any starbucks barista employees out there suffering from chickpox like skin rashes?
We have heard of several in CA and Boston. Must be something in common, cleansers,etc any ideas?

[Will]

Layoffs - round 2? I thought they weren't reporting same store sales anymore...

[sbuxnewbie]

I keep seeing reports like this, then look at the comps for my district - Only one of the stores is reporting negative sales figures - And that store had several of the large businesses nearby close. The others are all showing an average increase of 7-10% over last year, even the two that are on the closing list!

Of course, we're in Upstate New York, so we must not count.

As to the new offerings, the multigrain rolls are flying out of the pastry case, we're selling oatmeal at all hours of the day (much to my surprise!), and the apple-bran muffins are moving quickly. Surprisingly, the fruit/nut bars seem to be a hit or miss - some days they sell out, others they just sit there. And while I think the new pumpkin loaf is much, much better, it doesn't seem to move as fast as the old one did. Maybe that's because they keep autoshipping it to us...

The chocolate cupcakes... uh, muffins are dogs. We sell 6-8 a week, so far.
The pumpkin muffins come in tomorrow. They've ALWAYS been a good seller - we'll see how the pumpkin scones do, now.

[buxy]

layoffs round 2?
where have you been? Round 2 was early June. late July was round 3 ... they'll wait until all our high performers quit over the meager raises that our leadership had to 'fight' to get us at all before they offer is more severance packages ...

[Melody]

She said once the fiscal first quarter is over in December, the company "has set itself up well for a return to healthy earnings growth" due to store closures and the elimination of many jobs. The company is now closing about 600 underperforming stores and has eliminated about 1,000 jobs.

Well, the article ends on a bright note ...

[sneaky]

I think I mentioned before that Howard told the partners in So Cal that California had so many stores that it was considered in the SSC to be it's own country for Sbux.

Well the LA Times reported that CA unemployment is 7.7% - 3rd highest in the nation, tied with Mississippi and the highest in the states recorded history (thanks Sbux for helping with that statistic). That being the case it is no surprise that the company's overall business is so bad - California is dragging it down (along with So Florida and Texas according to the bean counters in Seattle).

If, and that is a BIG if, the business is up for the second quarter it will only be because last year was so dismal there isn't anywhere else to go but up.

I'll be real surprised since it looks like the metro New York market will be the next big hit to business after the latest financial meltdown.

Oh well - "Onward" as the big guy says.

[truth]

But....but....but.... I thought the analysts LOVED you!?!?

[common sense]

So the SSC Brainiacs are continuing to search for that silver latte or the next hug me muffin. They have such great success why not keep doing it over and over. Oh yeah, that's called insanity.

Time to get over your egos and realize that if your customers don't know what your selling, they won't buy. How about some advertising? That would be trying something out of the norm of the beloved Starbucks culture. Wait, that doesn't exist anymore either.

No money in the budget for advertising? Of course not, we must pay for Leadership. After all Howard made a promise.

[bf]

We outsell our new food and oatmeal all the time. I personally *made* 35 oatmeals and I was on drive thru. Who knows how many overall? (I worked 9am-12pm to help someone)

[snagger]

Maybe Howard can fire half the partners at the leadership party and use the savings for advertising!

Let's get real. It's just time for the king to be dethroned. Simple as that.

[Cut Out The Heart]

If Howard really wanted to deliver on his promise, he would step aside and let people who know what the heck they are doing run the business. Oh, wait a minute, he forced them all out because he couldn't handle people giving him negative feedback.

I think Howard is the Brett Favre of the business world...doesn't know when to retire.

[JR]

I used to get rashes on the palm of my hand and that was due to the fact that I dumbly enough didnt wear gloves when I dealt with Urn-ex, floor cleaner or the oven cleaner...It is very important that if you think you are gonna get any of those on your hand...Even if it is a little bit, always always wear gloves. I dont get those minor rashes anymore.

[Please Help Us]

There is another reason why fourth quarter earnings are down for the company. There is a district manager committing blatant acts of discrimination, retaliation, job threats, etc that are still occurring in the Atlanta, GA area under the leadership of one Kara Davis. I, along with many other partners, have written numerous letters to Partner Resources up to and including, Chet Kuchinad and the business conduct helpline, with no response. The situation grows worse by the minute. After having only taken over the district 3 months ago, Kara has fired four managers back to back. What's worse is the fact that all of these managers are openly gay and it is documented that she has been threatening to fire them because of her own biases since day one. Many partners have had promotions, transfers, etc. held over their heads by Kara in order to get them to falsify documents so that she could find a reason to fire each of these managers. Kara is going into numerous stores in the district and having partner after partner witness her discriminatory gestures, comments, etc. and these partners have documented her inappropriate behavior extensively. However, Starbucks seems to be "overlooking" this documentation and refuses to investigate the claims from any of these partners. The partners that have been targeted don't even want money or anything crazy, they just want their jobs back. Many of them have been with the company 6 or more years with no corrective actions, etc. before being told one day they were being fired without notice by Kara. However, after being made fun of and in many instances being told several weeks before their termination that she was going to find a way to fire them because she doesn't like their lifestyle, there is validated concern that a cover up is hiding a lot of documentation and it needs to be exposed. This is not Starbucks culture, but rather a regional office in the southeast protecting one of it's own. We need help and we're not getting any from Starbucks right now. Someone has to listen to all of these many partners who continue to come forward. Please Help!

[Anon Unionist]

Please Help Us, http://www.starbucksunion.org/contact/organizing

I normally wouldn't link to the Starbucks Union or IWW sites like this, but you're asking for help, so I'm offering a solution.

Even if you aren't interested in joining a union, we can help you with general strategies for taking action against Kara Davis. We can help you plan actions that will be hard to ignore.

Your situation sounds extremely awful. I think I speak for most Starbucks Union and IWW members when I say we will be glad to participate in any action to help you and your partners out.

[snagger]

Please; Don't waste your time. You should realise that Chet represents the mindset that would use third world sweat shops to turn a profit.He's also a yes man for the man in charge!SBUX culture is a fiction built on the backs of mainly young women and run by a bunch of older men.THey know how to abuse people .

[Concerned]

This is sad. Not to mention that the hires and promotions in my district are terrible. It seems like only friends of SM's and DM are getting hired/promoted. These people aren't getting the position for doing a great job. Over the past year I was pushing for an ASM spot (I'm SS now) Lately I've been thinking about going back to my old career. I'm not even sure if I would take the ASM job if offered.

Just looking at the numbers we have lately... Doesn't seem to promising to start a career with a company that is barely hanging on. Not to mention the fact that asking for a raise is out of the question...

[Anon Unionist]

Please Help Us, again, I urge you to contact the Starbucks workers union. I know we will help you fight this.

Also, you should know some other options. Check your state's labor laws. Unfortunately, not all states have laws against employment discrimination against gays. If Georgia does, however, you can move forward through the legal process. It will be slow, but if your story is accurate, you should have a solid case. Second, contact the local media. Newspapers, radio, TV stations, etc. Don't forget alternative periodicals. Most major cities have at least one weekly "alternative" newspaper, which usually lean pretty far left. If the mainstream media will not help you, most of those sorts of publications certainly will. And don't forget the online media. Don't stop with posting here, make sure you hit every starbucks, gay rights, feminist, workers' rights, Atlanta related, and legal related blog and website out there.

Finally, don't just make sure everyone in these stores is speaking out individually. If you all contact upper management, business conduct, etc, individually, they will just feed each of you excuses. Act and speak as one. Organize an action where all of you go to someone that can do something, and have a goal set for that meeting, and do not leave until it is accomplished. Have contingency plans, and don't let them control the meeting. A good achievable goal for something like that might be ensuring that Starbucks opens an official case file for your complaint. Don't leave until they have given you a case number and have agreed to take statements from each one of you there.

[givemeabreak]

Finally an honest analyst- only wish upper management would get their heads out of the sand!

[Ken]

So, is everyone starting to realize that Howie is not the savior everyone was saying he was when he re-took control? I remmeber saying it wasn't going to make a differance (not a good one away), and everyone was saying how amazing Howie is, and how this company is going to turn around. So far, profits are still declining, but, at least I can get something new at Starbucks, yummy Oatmeal!!! Mmmm, screw profits, I can order oatmeal!!

[cupajoe]

Ken,

Your comments are ignorant, to say the least. Profits may be declining to a certain extent, but so is the economy. If you are not innovative and do not try new products, you die as a business. What the hell is your problem with Howard Schultz? If you are disgruntled, get the hell out of the company. I don't work there, but I'm sure they don't want you. And yes, the oatmeal is damn good!!!

@Melody- your comment-were you being facitous or serious? -I don't know how to take it.

[snagger]

Hey cupa,Try the oatmeal at Peet's,their stock is soaring.But maybe there is money to be made in coffee without some proprietary protein or energy added.Get rid of Howard and his yes men, get some women and Americans onboard to run the place and hope for the best!

This site is full of unhappy Baristas. Please....get a grip!

[StLouieDrip]

@Anon, from what I've read of Melody's other posts I took that to be unequivocal sarcasm.

[Ken]

cupajoe
I have nothing against Howie, I just couldn't believe how excited everyone was when he returned. How he was going to to just turn the company around, and all will be good. Sure the ecomomy is bad, but there are a lot of companies that are doing just fine, making money, or at the very least, maintaining the statues quo. I don't, nor have I ever worked at starbucks, I am a big fan of coffee and find this site fun to read.

I have always, and still think oatmeal is a stupied idea, so its selling ok in some areas, for starbucks to start serving oatmeal and think it will help sales would be like GM making big wheels and thinking it will turn thier company around. Its stupied, that is just my opinion, and so far, no one has proven to me that oatmeal has done anything for the company, exept give the baristas one more thing to bitch about preparing.

[Melody]

There's nothing bright about 1000 pink slips.[/serious]

[I'dRatherNotSay]

To Please Help Us:
Kara Swinehart, now Davis, was a pathetic excuse for a shift supervisor when she was in Michigan. She backstabbed her peers on her way to Store Manager by kissing up to the right people. She's another example of "it's not what you know, but who you know" at it's best. We tried to get her fired when she was a SM. (That's when she was sleeping with one of her shift supervisors in her store.) The way that was taken care of was to place her in a different store, instead of seperating her. The next thing we knew, she had transfered to Georgia and somehow got promoted to DM. It's obvious that she kept up the game once she moved there. We warned the DM's, and PR, about her but our words fell upon deaf ears. I'm so sorry to hear you are going through all the troubles with her there. I've witnessed her underhanded ways, she's the master at game playing.

[cupajoe]

Hey Snagger,

Peets was $34 in July 2005, and now it is $28, reallly soaring!!!

[ShiftyinNV]

Sbuxnewbie- Only goes to show that every store is different :).

The chocolate muffins have always sold fairly well at our store. The new offerings have, in contrast, not been going over well. The most oatmeal we've ever sold in a day is three or four. People don't even seem that interested in -samples- of the multigrain roll. The apple bran muffin attracts a little more interest, but not much more. People seem to be greeting the very idea of healthy pastry case offerings with a whole lot of disinterest. From seeing what I see in our store day after day I would not say the new offerings have exactly been a hit with our customers, so I'm glad to see they have been a success for others.

(The only exception to this is the signature hot chocolate, which people are loving when we sample it and seem to be keenly anticipating- maybe we just have a lot of chocolate fiends for customers.) :)

[snagger]

In 2001 Peet's and SBUX were both around $8; today Peet's is at 28 and trending up while SBUX is doing 15.Cupa I'll take 28 over 15 any day.SBUX options are like rocks!Is it the economy s_____ or the management?

[GermaninSD]

I suppose this has been discussed years ago already: But how about offering a poor man's breakfast or snack? I still keep hearing that Starbucks' offerings are just too expensive. You have the brewed coffee that is fairly cheap and than it spikes up real quick. Sell something that sounds like a great deal, not just something that is not-that-expensive. And don't tell me you do that already. Poor sales tell me that you obviously don't.

[in the same boat]

To I'd rather not say,

I saw your posting a few comments up about Kara Davis and it all sounds too familiar. I am a partner in the Southeast Region and have been discriminated against by Kara Davis. I've reported it to many HR reps in the area including Jacquie Reid, but with no end result. Kara Davis actually fired me because I'm gay. She planned my firing ahead of time and shared her sick plan filled with her personal discriminatory actions with countless partners in the company prior to firing me. Documentation doesn't seem to mean anything to Starbucks though because many partners have come forward with statements, but Starbucks refuses to address the problem. I was even told by HR that Kara Davis may just need some coaching and that there wasn't any reason to be concerned. It's obvious that Jacquie Reid is helping to cover up the problem instead of getting to the truth. No action has been taken against Kara and she is still tormenting the partners in her district. Will anyone protect us?

[FormerNorthernCASM]

Dis Peets stock split like Starbucks stock did?

[Melody]

Hello, in the same boat: I've seen just a couple of these kinds of posts - someone was posting something similar at MSI recently. Why not contact an employment law attorney and find out if you have a case?

http://starbucksgossip.typepad.com/_/2008/06/two-ex-starbuck.html

[imaje]

Has the national labor relations board been notified of Karen's activities? Since it's kind of obvious that Starbucks doesn't want to touch on the issue, the NLRB would be the best route to take. Hell, even if Starbucks was doing something about it, the NLRB should still be contacted. This is all just so absurd and on behalf of the human race, I apologize to everyone who has had to deal with this woman. I don't even have to know her to know that she's bad news :(

[I'dRatherNotSay]

In the same boat,

I feel your pain and am so sorry about your situation. I wish I could help you somehow. I do know that there was another incident once she was placed in her "new store" in Michigan. A male shift supervisor wasn't performing the way she felt he should be, in his position. The words out of her mouth to him were "I know your problem, you like boys don't you?!". She was harrassing him then about his sexuality, and that was at least 4 1/2 yrs ago when she was here in Michigan. He didn't call compliance because he didn't think it would matter to anyone. Who knows how many people she's done this to?? I agree with the anonunionist, use all of your options! Don't stop making your voice heard and also find an attorney. She won't stop behaving this way until someone stops her.

[Aaron]

I'dRatherNotSay, is her Maiden name really Swinehart? How fitting. Or maybe it's just a joke? I can't quite tell. She sounds like a terrible partner.

Something obviously needs to be done about her. Please help us, again, definitely check out your legal options. File with the NLRB. Also see if the laws in Georgia protect employees from anti-gay discrimination. Unfortunately not all states do, and federal law doesn't... But if Georgia does, contact the Equal Opportunity Employment Commission. Also, try all other legal options. You could try to find a pro-bono lawyer, or get a legal fund started. Also, if there are ANY other problems in area stores, even if they aren't related to discrimination, contact Davis to ask her to do something about them. When she doesn't, file complaints with the appropriate agencies. I'm thinking of things like safety issues, then file with OSHA.

And finally, I've talked with some other union members in my area about this problem. We absolutely want to help. Unfortunately we have no contact info for you! If you would like to accept our offer of help, just go to the url I posted earlier. Even if you don't want to be involved with a union, IWW organizers will still be glad to help you organize a campaign to take care of this problem.

[Anon unionist.]

Uh oes. It seems I've accidentally given a clue as to who I am. The above post was me. I post under two names here because I have not informed the company of my union membership yet, in case they get the wise idea to retaliate against me for union involvement, which they have done to others in the past. When I am posting regarding unions, I remain anonymous. Union members sometimes wait to inform management of the membership because it can allow them to organize at their stores quietly without excessive and sometimes illegal interference from management. When I am not posting regarding anything related to the union, I use my real first name.

I hope that readers here are not offended or feel like I am being tricksy by using two names here. Luckily I am going public to the company very soon anyway. And they probably know I am a union member anyway.

[I'm in too]

Omg, I am a victim of Kara Davis(Swineheart) here in Atlanta. She recently threatened my job unless I falsified a document for her so she could fire the store manager. Up to that point, Kara had come to our store and made comments about our SM like look at him, he could be the spokeswoman for how a gay man should walk... It really is sick what she's doing. She recently even fired him after having said she was going to do it because he's gay and she's trying to cleanse her district. I've written a letter and have called human resources repeatedly, but the response is always something positive about Kara. it's time for something to be done. I can't believe this stuff was happening back in Michigan too. Kara knows how to put on the "face" when her superiors are around and that's what keeps her around. We need to find a way to exchange contact info so we can come together as one. The power of numbers is real. Why can't this issue be a headline on this sight rather than just company info about oatmeal, etc. Can the webmaster help?

[imaje]

Can someone get their hands on a pocket recorder or just use the speakerphone on a cell phone to get audio documentation of what this woman is saying? I don't know what the laws are in Atlanta but here in Minnesota, as long as one person knows that the recording is taking place, it's legal to tape a conversation without someone's knowledge. I agree, this woman is sick, her actions and words are worse and no one, straight or not, should have to put up with it. Has anyone stood up to her and told her just how inappropriate she is being as a supposed professional within the company?

[Cut Out The Heart]

So Kara Davis made it through the decision making process on who to let go during the July carnage? Man, what criteria was used? If in fact what is being said is happening, this qualifies for hate crime protection doesn't it? My understanding is that character and credibility was not considered in the firing decisions...all money. My guess is that Kara gets results and doesn't make a ton of money for a salary. She is the future of Starbucks unless Chet gets a clue that results are achieved the right way and the wrong way. Sounds like Kara is doing things the worst way ever...Does anyone have a positive experience with her?

[BadKitty.]

This is absolutely terrible... I don't have any experience with this woman, but you have every right to fight for your rights, and you should. That is no way for anyone to be treated. She should be absolutely ashamed of herself. I'm so sorry you have to deal with that...but I'm not sure what you can do. If I were you, I would try to get a recording of what she was saying, or get something written down on paper...perhaps talk to her through emails? That works like a charm. If all else fails, and there are people on your side, go to an attorney...and sue her A**!

[Zeus]

Id rather not say,

Were the 2 incidents the only ones you know of? Were they reported? I just cant believe if you warned the DM and HR department, that they just overlooked it.
If she was that bad, I just cant believe more employees didnt come forward and report it.

[indaknow]

don't look now by more layoffs in store dev coming soon. it's too bad they don't look at the useless leadership of these divisional teams and take real action for improvement rather than just reducing costs. it's a shame that people with no experience in the profession have major leadorship positions. isn't it time for a real change?