Starbucks expected to present its recession strategy at Wednesday's shareholders' meeting

The Wall Street Journal says of the annual meeting: "Executives are expected to outline a plan to weather the recession that includes an effort to make Starbucks products seem more affordable, and reassure investors that the company is on track to cut $500 million of costs by the fall." || Read "Starbucks to Present Recession Strategy"

Comments

[E]

An effort to make Starbucks products "seem" more affordable

[The Dreaded SS]

An environmentally designed "green" store complete with disposable paper menus?

I love it.

[beantheredonethat]

A recession strategy for Starbucks is simple: fire Howard and most of the board for running the company into the ground.

Replace them with competent executives who think strategically, do not change their minds constantly and who value honest dialogue.

[SBUX Alum Bill]

Here's Tully's strategy:

Tully's hopes to expand with licensed stores

[BOSTON STARBUCKS REBEL]

Yes, Starbucks will save $500 million, simply by firing partners and commoditizing the Starbucks Experience. I'll let you in on a secret Mr. Schultz, the people who still have money and willing to go to Starbucks don't want instant coffee or breakfast pairings.

End of line.

Out.

BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE

[FinallyFedUp]

Now they have REALLY gone insane!!!

REMOVING prices from the board to give it more of a "coffee house feel." I thought THEY defined the penultimate coffee house experience for the past 10 years??!! How many coffee house do you walk into that do not have prices listed - none in Dallas, anyway!

And to save money, they are now printing up paper menus, with prices that can't be changed when they allow stores to change prices daily based on sales. HELLO?

I'm now going to ask for paper list every time i enter the line, so I can peruse the menu and slow them down.

EEJITS!!!

[the truth hurts - @ beantheredonethat]

@ beantheredonethat - You are exactly right. We need a change of leadership bad.

[Karl Kenya]

I love the idea for the new stores!!! It's about time.

[Quitting Soon!]

Stop carrying pastries altogether so we can eliminate markout costs altogether.

Don't brew any coffee at all except between 7:30-9am.

Change SIP to purchase stock above market price.

401k match is paid in sharpies.

Make us count each wet rag cintas picks up so we don't get charged.

Eliminate email- only use voicemail to promote 'ease of communication.'

Correctly describe DMs jobs as 'readers of email on conference calls.'

Eliminate make-your-mark.

Find all things good and destroy them.

[Patty O'Nerr]

I love the new Starbucks and teh plans for the future... makes it easier to decide to go elsewhere

[Mybux]

to save $$$ get rid of ecosure a good dm and store mgr along with the health inspector should be enough to ensure a clean store

[WasBaristaWhenPoor]

I used to work at Starbucks, but now I'm actually confused by the changes and the menu when I go in. Crazy. They need to be more consistent; paper menus? That is NOT good for the environment.

[Shift Supervisor]

Starbucks is saving the money by getting rid of the good partners that have been there for a while and making more money then the newbies. Starbucks idea of getting rid of people is by making them miserable at the stores. Starbucks use to be a fun place to work and I always looked forward to going to work and seeing my partners and guests. Now it is more like a "job" and I go into work and see nothing but sad faces that are stressed out and guests that are now unhappy customers that we cannot "connect" with because we are cut on labor so much that we have to rush to get the drinks out and no time to connect. Plus in my district if a store gets a bad customer voice the store managers are getting written up. But it is the company that is causing the bad customer voices and NOT the partners or SM's. Starbucks is NOT the place I use to love to visit and work. If I wanted a job that is going to harass and grip about every tiny little thing then I could have gone to walmart and worked.

[SBUX Alum Bill]

I don't really get how extensive this new store concept will work. Does anyone know how many other versions of this Seattle store are planned? Is it supposed to appeal to the urban coffee connoisseur, while our other stores serve the masses?

[SBUX Alum Bill]

(Sorry for the poor grammar in my previous post. Show have previewed before posting.)

[Asher]

I find it extremely timely and coincidental that our stock has gone up roughly $3 in the past week or so...just in time for the big meeting. Now they can all sit there and say everything they've done is starting to yield positive results...

[Shift Supervisor]

Positive results my a$$

[Blaze]

At the end of March when all the low hour partners have been forced out due to optimal scheduling we should see things starting to turn around especially for you full-timers, you should be receiving more hours then you've been getting for the past few months.

[rightyo]

I don't hand out any customer voices. If no one gets one, then they can't be bad! YOINK!

[Alvin]

How's this for cutting costs? Stop pretending to be a business and just move to 501c status already.

[former partner]

Truly the most ridiculous idea yet. Remove prices and beverage choices from the menu, and print them on paper instead...

so increase wait times while baristas explain what drinks are available but not on the menu, why said drinks are not on the menu, and then recite all the prices.

And Starbucks Wastes more money and trees at the same time.

May I suggest forgeting completely about coffee and focusing on the customers food experience. Yes, super-sizing the value meals with homefries and providing happy meals might work.

I'm longing for the old days, but spending more and more time at Peets and independents.

[green_cup]

Regarding the "environmental" store with paper menus ... yeah, that's pretty ironic.

As well, BOSTON STARBUCKS REBEL, I'm not sure if this is Michelle Gass:

http://www.wpi.edu/News/Transformations/2005Spring/Images/espresso1.jpg

but she doesn't look that large. If this is indeed her, and I think it is, your facts are wrong or your view on women is very distorted. If anything, she looks "average."

Finally, the new store is pretty damn awesome. Stopped by there again today and it was excellent service, great coffee and a perfect atmosphere right in front of the market. New favorite place, honestly. Too bad all stores can't be like this one, but, I'm happy that I get to stop by this one if anything.

As for Starbucks cutting "tenured" partners... facts are these: the longer someone's with a company, generally, they make more. The high-earners probably do no more work than someone trained on the job for a year. Of course these folks would be cut first. Why wouldn't they be? As well, if you've been with Starbucks for more than a few years and aren't a Store Manager or better or in the home office, you're doing something wrong and probably should be let go. Workers for companies have Return on Investment just like any machine. If the return is lessening each year, then cut the excess. It's hard times out there, and I'm sure a lot of folks are getting shafted for no reason (like (former) FLA SM [hope you're getting some relaxation time in]), but a lot more are probably being let go for valid reasons.

Finally, hi Melody! :D

[white_knight]

well the economy is in bad shape and everyone is feeling it. but experimenting on a "new" store is not such a good idea, bad timing. in order to thrive as a company starbucks should make it less of a convenience and more of a hidden gem type of thing. get rid of all the stores in the lower income neighborhoods..people with welfare checks, simply cant afford $2+ of a drink, as a daily thing. let go of stores that are facing each other..(trust me in houston we have one in every corner and across the street!) and cut partners who always..and i mean always call in to work sick and are constantly late. higher paying baristas should get less hours than those new ones do. and ecosure...the damn pressure!!! get rid of them altogether.

done.

p.s. green_cup= douche.

[green_cup]

@white_knight: yeah, not sure why you'd say that, but whatever. you're entitled to your opinion, however uneducated it may be and the way it makes you look just plain stupid, but entitled to it you are, nonetheless. it's sad because what you have to say regarding SBUX is pretty dead-on. Too bad you ruined it with your lame, half-assed attempt to make yourself feel better.

@SBUX Alum Bill: yeah, BSR is odd to harp on Michelle Gass. I don't see the evidence indicating she has a large "derriere." Eh, well.

[Katie]

I'm reading all these comments and I'm sad. It's because of you whinners that complain about problems yet contribute no solutions. Sure, cutting labor wasn't fun-but every other company is doing it right now. Ecosure is painful-but we have to be held accountable to what we do and don't do in our stores. If you want to reference WalMart-then go to work there and then you will have something to complain about. We get paid decent money, and have benefits for part time-quit complaining and start taking care of your customers before you run this company into the ground.
For those of us who work hard and are passionate about our customers, it really is painful to hear so many people not give a crap! I hope those of you that are as passionate as I am start to speak up about how to make things better for ourselves and our customers, and call out people that derail us from these goals. Lots of people need jobs right now, if someone is putting us in a negative light and not doing there job, tell the manager and get someone who cares. Please! For the sake of this company and those who love it!
Katie

[STARBUCKS GOSSIP WEBMASTER]

Michele Gass's appearance has nothing to do with this thread; I've deleted several comments.

[Snizzle]

"As well, if you've been with Starbucks for more than a few years and aren't a Store Manager or better or in the home office, you're doing something wrong and probably should be let go" Posted by Green Scum

This is why people get punched in the mouth for talking about the heart of the company-The Baristas are what make this whole damn thing function, and some people believe in longevity, they might not want to move up and that's there option. To say that you are doing something wrong by staying at your position because you enjoy what you do is just F'd up...

Green Scum stay at my store, it's better for you that way...

[Corbo]

Ahh! After reading the article, I can't help but feel that this is just a bad idea. While I love the idea of making Starbucks feel more like a coffeehouse, leaving products off the menu, as well as their prices, just doesn't make sense to me.

...but what do I know. Maybe people will order more expensive things and bite the bullet at the register.

[white_knight]

i redact my statement regarding green_cup.

oh well.

[Mybux]

I wasn't complaining about ecosure... I've had very good audits. I'm just saying that we could save money by holding ourselves accountable and not paying a third party.

[Ali Cat]

where is my laptop??????????????????

[green_cup]

@snizzle aka blaze aka whatever the hell name you're using today:

What I said was is this:if I were the HR for Starbucks, I need to know you want to go somewhere in my company. That said, if I were at Starbucks, a qualified, quality HR person would be very suspicious of someone who was full-time and stayed a barista. If you have no drive to move up, then I have no drive to want to keep you around. It's natural that one progress up the ranks and if you can't do that, it just shows lack of motivation which indicates you have no drive to better yourself. If I can find someone with that motivation, 100% of the time that indicates that that candidate will be a MUCH better employee than one who is unmotivated and passive in bettering themselves professionally. So, yeah.

I never discounted the idea that baristas are the front line. BUT, in order to succeed in an organization, you need to see many facets and roles of it. That means moving up and moving on to other roles. Clearly.

As for "your store" thing, have no idea, yet again, what you're talking about. I'd recommend you step off and think before you respond. You're coming off like you're off your rocker and not all there. It makes you sound just stupid.

@white_knight: um, okay. whatever. thanks...

@Katie: While I see what you're saying, you need to walk the fine line of not "drinking the Kool Aid" and still being passionate about your job. It's great you want to give good service, etc, but to just roll over and take whatever Mr. Starbucks is saying to do today without questioning or understanding the motive is just dumb. Starbucks hasn't done right by their customers or what appears to be their staff in A LOT of instances, especially recently. The service is terribly lacking in many stores as well as the fact that the coffee hasn't been great (no bold or decaf all of the time, etc.) It's just stupid to say Starbucks is doing right 100% of the time right now and anyone "complaining" is just whining. That's condescending at best and insulting at the worst.

[scott mcgowan]

green cup so what you are saying is that if a person is not getting "bigger/better/stronger/ faster then they are garbage and need to go out with it to the dumpster? that kind of got to have more attitude is what is wrong with this whole freaking country. we are so based on "we have to have more money to spend on more crap that fills more landfills and makes more trash to destroy more nature to make more crap." i hope starbucks is around in the future but the truth is, if we as a people don't learn how to survive on this planet without always getting and having more and being more then i doubt anything can survive what karma has in store for all humans. go take howard's job then what do you do to be more? president? king? how high is the bar before it is too high? greed and envy and money is al it comes down to!

[Moiraine]

@green-cup,
While I get what you are saying, I also know that there are some great baristas out there...fantastic ones actually...who perhaps have chosen not to move up for good reasons. I've known a couple of mom's that worked in the morning...awesome workers...who wanted to be home with their kids after school and things like that. Loved the company, sold the heck out of everything.
Of course, not all of those people are going to stay with the company for a lot of years, but I think they are quite valuable on the front lines. Not everyone who is a really great barista is going to make a really great SS and so on. I don't think that means that they are not still the ideal people to be greeting the customers though.

Again, I see where you are coming from, and I think our folks should be passionate and invested, but to me that does not neccesarily equal wanting to move up. Just my opinion.

[Blaze]

@Moiraine

I second your last post...Thx

[green_cup]

@Moiraine and scott mcgowan:

I see what you're saying, but facts are these: when someone doesn't perform (and having motivation is, indeed, an indiciation of performance), their skills are questioned.

I see that some folks (like the proverbial stay-at-home mom) might want to have an 8/ week job for fun money, but here's why that is an issue:

#1: Starbucks, according to lots of folks on here, is axing short-hour folks who can't meet minimum hours. I agree that this is a good thing. The better-trained partners (and the more hours you put in, the better trained you should be) are getting the labor. They've put more into the job and deserve the most attention as long as what they're doing while at work is indeed good performance.

#2 Why keep on dead-weight? Sure that stay-at-home mom might be a great resource when Barista Joe calls out for a day, but, overall, the cost of training, HR resources, etc, provides a minimial Return on Starbucks' investment in the long run. For the same hiring costs, etc, they can find someone at 40 hours a week who will perform MUCH better and probably feel they've personally invested more in the company.

All I'm saying is that, whether right or wrong, HR folks do, indeed, look at performance. Staying at bottom-rung makes you look suspect and/ or unchallenged, and thusly, not a good employee. It's there, it happens...

@Blaze: Why do you keep changing your name? It's just stupid. It makes you look childish and like you have some sort of multiple personality issue.

[scott mcgowan]

green_cup, keep working at it and you can have the executive director of human resources job at the corporate office soon. i just hope that one of the younger "movers and shakers" doesn't get too motivated and knock you off the job pedestal. is life supposed to be a survival challenge everyday or is there a time to actually enjoy without having to watch your back to keep from getting stabbed for you food. we are talking about work and not the jungles of borneo. as i stated before: greed, envy and love of more money for more crap is all that it is about. values in this country have been shone the door.

[Shifty Stuporvisor]

green_cup, the attitude that "there must be something wrong with you if you haven't moved up" is actually what keeps a lot of great partners in their current positions, as we get passed over for external hires all the time. Also, you are oversimplifying the reasons that people stay where they are. If you work at starbucks while going to school, that means you stay a barista or shift for several years, which I am sure you think is way too long. Also, people stay because they are happy, and happy people provide far more legendary service and get more done, they make a little more because they are more valuable employees. Personally, I stay where I am because I enjoy it, and I do not feel like I would enjoy what my boss does. Looking at each position as merely a step on your own personal ladder does not indicate drive, drive is striving to be your best, and help those around you to be their best, doing the job that you are currently paid to do, all day every day.
If nobody in starbucks HR or any other office capacity loves their job or has any respect for hard work or experience, valuing only the ephemeral "talent" that's going to get them to their next title (and that most likely elsewhere), it's no wonder that this company is in the shape that it's in.

[STARBUCKS GOSSIP WEBMASTER]

A reminder: No personal attacks; keep your comments civil. The bans are beginning.

[SBUX Alum Bill]

It looks like Dunkin is also going back to basics:

Dunkin Donuts to push doughnuts!

[Blaze]

Sorry Webmaster my apologies. Shift Supervisor god bless you -HOWIE move over SHIFT SUPERVISOR take over!! :) Keep up the legendary service and let it spread to the partners around you-RESPECT

[David]

I am almost at my one year anniversary with this company. I really, really enjoy running my Starbucks (I'm a shift). I love my partners, my managers, my customers, even my DM!

I do see lot's of stuff happening, lots of changes coming, and while I don't have the experience of working for Starbucks previous to all of this, I do know that while a lot of what is happening does seem like bad decisions. That being said, it's good to know that

1. some people still care, a lot.
2. the company is seriously trying to get and remain profitable, which will save jobs in the end.
3. I'm going to run my store as well as possible, no matter what, every day.

The only thing I really, really want is to be able to brew bold after Noon. That and maybe a set schedule, but I think that is already in the works.

[Wagstaffe]

My thought for success: Just make good coffee. Period.

Please stop wasting money on new stores, bizarre drinks of the month, constantly revising everything, reorganizing, trying the find the next big thing, . . . stop. You are killing the brand - not reinventing it.

“The proof is in the cup.”

Just make good coffee. Damn. What’s so hard about that?

[Former Chucktown Barista]

I agree with Shifty Stupervisor: if the retention issue with Starbucks were based on upward mobility, then it would provide training and the opportunity to compete for SM positions, which instead tend to be filled from outside by former retail/fast food franchise managers. If the company offers little to no hope for advancement, it cannot judge partners negatively for not advancing past SS.

Green_cup has it right: when it comes to the bottom line, the Bux is laying off long-term partners because they cost more in pay and benefits than new hires, esp. teenagers. Does this make sense? Yes - for the shareholders. They need to see millions cut from operating costs NOW. In the long run it will hurt the company, of course, as "legendary service" goes out the window and the "Starbucks Experience" can no longer be distinguished from the McD's or DD's experience.

But green_cup, I do object to your characterization of working mothers who just want some "mad money". The working moms I partnered with all had at least 20hrs/wk, and were there to supplement their husbands shrinking paychecks, or to insure their families, not because they needed a new handbag.

[spence]

Green Cup,
I've been a barista 2 years and do not want the hours of a shift. And that alone is reason to stay where I am.

[B]

Anyone up for a live blog? So far it looks like money is being saved by reusing media from leadership to set the stage.

[?ing]

Shifty Stuporvisor:

Your points are dead on. Many people who have no desire to move up the corporate ladder are some of the best partners. Not all, but most. Some like me are hard workers who take pride in doing a good job every day. I’ve already been in management and really have no desire to do that now. I’m perfectly fine being a barista and enjoying the freedom that gives me to enjoy my life. I feel I’m a better partner because of I enjoy my life.

One thing Management doesn’t like though, and I’ve experienced this; they don’t like not being able to hold something over a partners head. They have attempted to guilt me in this way but it hasn’t worked yet…it never will. I have though, seen many partners literally jump through hoops, work above and beyond expectations, who deserve to get promoted and told they’d be promoted, passed over while the company hires from the outside. Then these exemplary partners are told to keep it up, do their best, give their all, and they’ll get it next time. They get passed over again. This happens over and over. The result; the company uses up a great partner and the partner gets frustrated. Eventually the partner leaves the company and another company gets a great employee. Management has used this tool to increase productivity but it does begin to burn them eventually. We’ve lost a great deal of super partners this way and a whole lot of money training them. This has been going on for three years now. Management should know that you can’t keep up a bad business practice for long before everyone is aware that it is happening.

[Conference]

If anyone wants a good live blog, a partner is Twittering it
www.twitter.com/sbx_ironchef

[SS-Scott]

Wagstaffe-Exactly!!! We already have good coffee. Actually we have great coffee. Now the BUX needs to let us serve it and stop all the nonsense.

[Crema_the_crop]

disposable paper menus. asinine.