Starbucks same-store sales have declined 9% in the first weeks of this quarter

More from the conference call with analysts:

* "When, not if, this environment does get better that Starbucks is going to be a stronger company for having gone through it," said Howard Schultz.
*  Starbucks shouldn't drastically change its identity or its brand, said the CEO. "This is not the time, after 30-plus years, after building one of the most recognized brands in the world, to throw the baby out with the bath water."
* Starbucks plans to personalize its Gold Card more so that baristas worldwide can identify customers by name, where they live and their favorite drinks. || Read "Starbucks may miss 1Q profit estimate"

Comments

[I've Had Enough]

So what's the answer? Of course, cut more labor. Oh, and it's drastic...
I hope our customers enjoy our dirty, under-staffed stores with burned out partners working the line. We're literally being held accountable at this point to intentionally UNDERSTAFFING our stores! Where do you draw the line between saving labor and creating a customer experience? This is too far...

[Mike Whalen]

>> * Starbucks plans to personalize its Gold Card more so that baristas worldwide can identify customers by name, where they live and their favorite drinks.<<

Oh! Cool! While you're at it, can you bring me some coffee in the morning. I'm kidding! :-D

[Mike Whalen]

Hmmm... a serious comment: I'm sure many folks with have privacy concerns about the Gold Card updates, but one thing occurs to me: This would mean that I have to hand them my card _before_ I order.

(Presuming, for a second, that the barista doesn't already know me by name or only kinda recognizes me.)

If I don't give them the card before my order, they won't automatically get my favorite drink or name. I've never been in the habit of handing the gift cards to the barista before I order. Maybe others do?

Of course, they could solve this with RFID, but that's a whole 'nother mess.

has anyone heard rumors that pepsi might buy out starbucks?

if pepsi takes over, i'm quitting

[Chasin_Fat_Kids]

I think the cool factor is what's important here and not the actual functionally. People like the idea of a personalized card whether it's effective or useful.

But, I can see a scenario where a customer would go into another Starbucks, order their drink, handing the barista their Gold Card and the Barista saying something like, "Not getting your usual today Mr. Smith?". It could have value.

[finally a happy partner]

I am so finished with this website. Times are tough enough, we don't need any further morale bashing and fear mongering.

[fun n foamy]

of course, it would be great if the warehouses had Gold Cards to begin with. I love how SBUX rolls out great things and runs out of them right off the bat, but keep crappy things around forever. Don't get it.

[Mike Whalen]

Good point, Chasin!

And why are you Chasin' them exactly? ;-)

Okay, Jim,

since you deleted my post about the german news about Colombian coffee growers buying starbucks, here is the english version of it:

http://www.reuters.com/article/companyNewsAndPR/idUSN2345796320081123

What do you guys think?

Oh, and why is Pepsi always mentioned to buy us out? Didn't we already beat this horse dead several times?

[Andrew from MySpace]

From the article...

"The answer to how we're going to respond to the competition is, we're not going to respond," he said. "We're going to keep doing what we do."

This is such an amazing leadership quality!Basically, let's just sit around and do nothing and hope things get better. Has this worked so far? I don't think so.

From his books, didn't Schultz establish that he has never been afraid to make changes and take risks?

Isn't that how selling latte's first started? Schultz taking a risk? (from his books)

WHAT GIVES?

I'm totally confused now.

So, we're going to build a company around taking risk and changes, then, when the times get rough, we're going to do everything the same. Then, when things get even worse, we're going to respond by not chaning, even though it was change that got us where we are in the first place?

Phew, thanks Howie, I'm glad we cleared that one up.

/end rant

[me #3]

It sometimes seems the SBUX takes the long / hard way to get what the consumers are asking for. How many years did the consumer ask for the “buy 10 drinks, get a free one” style promotion that is similar in 90% of the independent coffee shops. And what do they come back with? The gold card, with a 10% discount. Even though the end game is the same, there is nothing an american consumer likes more than to get something for free. (I do have my gold card).

Don’t forget. SBUX is similar to most retail organizations where Christmas sales and profits are the basis for the entire years performance. If their 1QTR (Christmas) falls short, then the whole year is likely to be WAY OFF.

I hate to say it, but it is going to be a hard year for SBUX if they don’t find a lower cost option to get people in the stores. Unfortunately the high end stores are all suffering and the Wal-Mart’s of the world are thriving. If Howard still wants to be a premium brand, he must accept that profits and revenues will be down.

SBUX is knocking off 2% of labor for all stores and non-coverage hours. Thats right folks get ready for long lines and unfriendly baristas. All managers will be held accountable to run stores with negative labor. Oh yeah Howard next time you make a decision like this why dont you ask how your customers feel. Like your bull *** customer voice. We already say your stores are dirty, slow, and unfriendly so why not more.

[bucking stars]

Starbucks is speaking with both sides of her mouth.

1st: They want the cleanest stores, Fastest, and most friendliest service (legendary).

then they go and increase workload, decreases hours... make the manager work on the floor more: causing shift supervisors to work less hours, and giving far less hours to barista's.

I don't know how they do not see that this decisions will greatly effect the companies new mission statement, and will most likely cause a lot of turn-over - and will truly lose the culture of "best place to work"

say goodbye to clean and happy stores.

Enter: a dirtier store. Stressed, under-paid over-worked employee's helping you, and more turn over.

[GRTL]

Oh my god...even fewer hours of labor. Long lines and 2 people on the floor. Give me a break. Someone wants me to do a spin...do it yourself! I don't have the time!

[beantheredonethat]

Now if Starbucks and Howard were serious about really saving money in a way that did not take away from the in-store experience, they might chose to decrease the number of meetings in the SSC by 2%.

[PhillyBarista]

Do more with less. Its the corporate way. The company I started with and loved is dead. I never thought I'd see the day when I was told to "intentionally understaff". Well they'll be "fixing" ALS so that it wont show us intentionally understaffed, it'll show it as being "properly staffed".

2% Non-Cov. Great, so 4 hours of admin and and done. If they think I'm gonna start working 50+ hour weeks, well, I won't be letting the door hit me on the way out.

Can we stop calling eachother "partners" and just begin calling ourselves "slaves".

[seventysix [76]]

So I guess I'm a little upset about the new rules with labor variance.

I don't know what I would suggest in its stead, though. More closings? Layoffs?

We need something different, and this isn't it.

My RVP visited my store this afternoon. We spent most of the morning cleaning which didn't help when it was busy. The closers kicked their asses last night to deck brush the floors too.

So basically, keep the stores just as clean so we get an OK from upper management, just do it with less labor next time?

Got it.

[Jim C]

Other changes coming:

Instant "Milk" (powder instead of liquid)
Instant Coffee
More pre-made mixes with LONG shelf-life
All frozen food program (LONG shelf-life)

New locations without bathrooms.

Just push the button and get your cup of coffee out of that hole to your right. Thank you for pushing our starbucks button, please come back again......

[CounterBean]

Now that managers and ASMs have to work the floor, can't they share in the tips, too?

SSs can or can't, depending. If they can, then managers working the line should be able to take tips. It is the same job as everyone else, and adding to the service that makes people want to tip.

[Nerfebarista]

I like it.. it should only take 15 mins to make a schedule with only 4 people on it.....

[sbuxbarrista]

I wouldn't be happy if my local starbucks barrista knew my name and where I lived. That's not right.

[BOSTON STARBUCKS REBEL]

I am going to submit a Mission Review!

I've just my claim form a release in the manager overtime class action against Starbucks. Starbucks has agreed to pay.

[confused partner]

Ok I understand cuts need to be made and what they are trying to do. Labor is one of the largest expenses of any company. Maybe RD & DM's should stop with all these last minute conference calls and get out to the stores and WORK!!! Work with only one other partner and see how it feels.
I am confused that a few weeks ago during our conference we were told how important our stores, partners and customers are and to the success of the company!!! How can you connect with a customer running a store with 2 people on???? How can partners have health coverage when they can not get 20 hours a week? There is noway we can do all of this and run at the labor they want. This is NOT the time to be doing this. Those people who are not regulars are going to think we suck with long lines, slow service, dirty stores and unhappy partners begging for hours so they can keep their health coverage. Pretty soon our partners will be sitting outside our stores shaking an empty old coffee cup looking for money to pay their bills!!!
I am willing to do what it takes, but this is TOO MUCH.
Thanks for nothing, I would of rather stayed in more store the week of conference if I knew they were going to pull something like this.

[exmgr11yrs]

@ BOSTON STARBUCKS REBEL and all reading,

Do it!! Write a mission review and photo-copy it. Get every partner to do the same. Keep record of it and coordinate so all are sent on the same day. Most importantly let it be known that it is happening. Your customers can get involved too, have them fill out customer comment cards. If you love this company, change it.

@ 76 and all,

If deep cleaning is truly an issue let the higher ups know, don't mask it. Your conscience will be clean. Do your best but don't sell your life and soul for a pat on the back. Your partners, if you are honest with them, will suport you. At the end of the day it's the managers head on the chopping block.

There are many more in store Ops than at HQ, organize and you will be heard (I am not saying union that would weaken your cause)

Or...

Maybe it's just time to leave.

Either way, take your destinies into your own hands, you'll be better for it.

"Be the change you want to see in the world"

-Gandhi

[kathy koffee]

I am looking forward to meeting the schedule and deep clean geni's that will be coming in at night after we are closed. Howard wouldn't leave us alone to get all this done with out help.

[starbuckian]

Everyone should be happy that you still have a job. Just watch the news and see all the people losing their jobs EVERYDAY.

Maybe we have to work a little harder...i'm willing to do it to keep my job.

[Alberta Shift]

Anyone know if this is USA only?

@sbuxbarista...as a customer, there are a couple of baristas I wouldn't mind them knowing where I lived. ;-)

[lattegal]

Yes, lets find ways to cut expenses other than hours...how about..

1. How about not marking out breakfast sandwiches every day and using them for display...6 sandwiches at about $3.00 per sandwich per store $18 X 7,000 stores is $126,000 PER DAY, and is $45,990,000 per year! How about a nice picture of all of the sandwiches to use on display.

2. How about we hold off on all of the new Mastrena's and use what we have?

3. How about not selling items that really don't sell...like Thanksgiving blend...we still have a bunch of it.

4. How about not putting one roll of stickers or one chalk marker in a big cardboard box in the RP order?

5. How about letting us use larger steaming pitchers to steam more milk so that we can get people out the door quicker?

6. How about brewing coffee a little longer than 30 minutes?

7. How about charging for iced teas and coffees instead of letting customers bring in their same cup day after day and just paying for a refill?

8. How about not filling up carafes of milk that people don't use and we have to dump tons and tons of milk down the drain?

9. How about charging customers for all the extra, extra, extra caramel sauce they put in their drinks?

10. Partners bring in their own personal reusable cups for partner drinks instead of getting a new cup or cups at every shift?

Anyone else have ideas?

[Melody]

lattegal - I'd add to your list a couple of ideas (from a customer point of view):

* Why do the baristas need a bunch of t-shirts for lots of new things. Vivanno t-shirts? How much money did that cost? And there were PPR t-shirts too.

* Don't get rid of the well-loved clutter. Didn't Bearista Bears sell? (correct me if I am wrong).

* I totally agree about extending the hold time on the coffee. How about Christmas Blend has a 45 hold time? If it was fine to have an hour hold time for the first like more than 20 years of this business, why is 30 minutes critical now?

* Simply don't do a bunch of re-launches of the stores all the time. What a waste of precious time to watch a manager fighting with some display of wheat that won't stay up and whoever thought it out didn't know how often the table it sits on will be bumped.

* Better yet, why not have a "coffee bean" launch. Oh no wait, that would be having a french press and sampling going ... but this might sell coffee!

* Brew a variety of coffees! Even brew aged Sumatra now and then. Why does Starbucks believe that their coffee beans will fly off the shelves when you can't pre-smell it or taste it?

* Make districts larger - No DM should ever have the time to micromanage a store.

* Get rid of either RVPs or DMs. Too many management layers.

* As much as I like them, it seems like a lot of money to make thousands of plastic V2V wrist bands ... If you want to spread the word about MSI & V2V there are better ways to do it. The cheapest quick way would be a sticker that gets slapped on to a paper cup with the 2 urls. But don't make thousands and thousands of wristbands, or special book marks, or pens ...

[Lattegal]

Melody -

Love your ideas. And totally agree. Another one I came up with is that DMs, RD, and upper leadership should come from within the stores. If Starbucks is so elite then the leadership MUST KNOW what goes into actually running a store. Having some leadership person come into the store and work for an hour just doesn't get it. It's really pathetic. They just don't get it and they are making very costly decisions and decisions that are actually going to change the brand that Howard says they have put so much time and money in to.

[Lattegal]

One more thing...

In 2 1/2 years of being a partner and stockholder, nothing has made me madder than the decision to cut hours. So, I’ve read ideas of sit-ins, sending in mission reviews, and starting a union and if people want to do that then that’s their choice. My choice is to stop buying stock! And that’s what I did. I stopped my paycheck withdrawals so that I will not be buying any more Starbucks stock for now. I have no idea what the leadership is thinking when they made this decision and honestly there have been some other costly knee jerk reaction decisions that haven’t made much sense either. So honestly, if hundreds of partners just stopped investing in S.I.P. this should get their attention. Partners can change their investment options from Dec. 1 – Dec. 15, so maybe this is something to consider.

[Melody]

So honestly, if hundreds of partners just stopped investing in S.I.P. this should get their attention. Partners can change their investment options from Dec. 1 – Dec. 15, so maybe this is something to consider.

I wonder what the effect would be? That's an intriguing idea. Anyone here with good skills at understanding the stock market?

[Lattegal]

The way I look at it, is that I am investing my hard earned money into this company. Money that is coming in through stock purchase is helping to finance the decisions that are being made, so to show how mad I am as a stock holder and a partner I'm not going to financially support this type of decision.

The senior leadership isn't going to listen or probably ever read hundreds of mission reviews, it not realistic to think that there are going to be "sit-ins" and I'm not sure that unionizing is the right way to go. So what will get their attention...their pocketbook!

At Starbucks, dismal sales have led execs to close 600 stores and increased pressure from stockholders to find millions of dollars in savings. A 2002 Gulfstream V that government records shows as owned by the coffee company is listed for sale on public Web sites. (Federal Aviation Administration records show the company also has a Bombardier 12-seat plane.)

Frequent use of the aircraft had made company chairman and billionaire Howard Schultz a target of criticism. Shultz has enjoyed free air travel on the planes valued as high as $475,000 a year, according to reports.

Starbucks' asking price for the plane is not listed in its advertisement, but similar planes are advertised for more than $40 million. The company did not respond to repeated requests for comment.

The Starbucks Gulfstream seats 16 in "tasteful" neutral-toned leather and cloth seats, according to its advertising copy, and comes with in-flight satellite television, DVD and CD players -- and a coffee maker
ABC NEWS POST LAST NIGHT

6 breakfast sandwiches marked out oer day=6.00 x 7 days a week X 52 weeks=2184X11000 stores =24024000...mmmm how about some pictures