Starbucks hopes its Seattle's Best Coffee will be its growth engine during the recession

Even as Starbucks closes hundreds of namesake locations, it is seeking franchisees to open new cafes and kiosks of Seattle's Best Coffee nationwide.Starbucks says the slightly lower prices and milder taste of Seattle's Best Coffee make it an especially viable vehicle for growth. Read "Starbucks looks to Seattle's Best chain for growth"

Comments

[Karen]

Starbucks has already destroyed one coffee company so let’s try it again. Great idea Howard!!!

[BOSTON STARBUCKS REBEL]

Ohhhh. I can open one of these right across the street from Starbucks and sees what happens.

[Latteguzler]

Don’t you think it would be easier to fix the existing problems, instead of forsaking Starbucks for a new horizon? Having one company failing is bad enough, do we need two?

[SBUX Alum Bill]

If you close 800 stores, but then open 800 franchises, how does that solve your cannibalization problem?

[BOSTON STARBUCKS REBEL]

I'm glad that Howard Schultz has finally created the company that he wish his dad would've worked for.
I think the line, "Let his blood be on us and our children" might be appropriate here.

[Will]

shouldnt there be a thread for the earnings call thats just around the corner?

[g]

I don't understand:
The article said that SBC coffee is much more milder than Starbucks coffee. They want to expand this brand, but haven't they already expanded a brand of milder coffee...PIKE PLACE at STARBUCKS?

[matt]

The difference is, Pike Place is terrible.

It is weird though, to begin expanding stores that are identical to
Starbucks in nearly every way.

[SBUX Alum Bill]

The difference is, Pike Place is terrible.

It is weird though, to begin expanding stores that are identical to
Starbucks in nearly every way.

The other difference is that the SBC stores would be franchised. I think this is a way for Starbucks to shed its investment in owned stores while still keeping its share of the market.

[beantheredonethat]

Very few people even know Seattle's Best is a Starbucks brand. I say let them battle it out. It the move further cannibalizes Starbucks customers, so be it. The money all goes to the same bottom line at the end of the day.

[n]

Another risk here is that the Borders chain is not doing well and could go out of business. Then what would Seattle's Best Coffee do?

[g]

Has the earnings call come out yet?

[Latteguzler]

The earnings come out Wednesday after the stock market closes (4:00 eastern time). The earnings call usually follows.

Get those antidepressants ready…

[Dunkin' Dough Nut]

We have a Subway two down from our store and the owner says they sell about one cup of coffee a day. They have Seattle's Best. Subway is a sandwich shop and, by Starbucks putting Seattle's Best, branded, in Subway, it certainly hasn't helped a 'coffee house' success for Seattle's Best. So, a Seattle's Best franchisee finds a spot near a Subway (lots of 'em around). Yawn...where have we seen that before.
Oh, I know: A Starbucks inside a grocery chain store and then a free-standing Starbucks in the same center, next to a Starbucks kiosk across the street in another chain grocery store with another free-standing Starbucks store in the same plaza, and..the..beat..goes on......

[green_cup]

There are a lot of cynical employees on this website that should probably realize they're very lucky to have jobs, given this job market.

I'd recommend you, you know, change your attitudes. I am fairly certain it's seeping into your "professional" lives and affecting your stores and customers.

Were you aware that customers don't like to buy discretionary things from customer service people who come off like gigantic, self-entitled people? That is probably why Starbucks is failing. Yeah, upper management has some to do with it, but the reason Starbucks isn't successful is because they're not making any money. Why? Again, the customers don't want to go there to get subpar drinks and subpar service. Low sales translate directly into no benefits, less hours (less pay) and store closures.

So next time you all decide to harp on Schultz for his "lack of leadership" when your store closes or you get four hours of work for the week or earnings are down or ... (the list goes on), remember it probably had a lot more to do with your attitude and poor work on the job than some guy in Seattle.

This is why customers are leaving. I know, personally, I'm sick of the barista behind the counter. Typically, they're self-entitled jerks who view customers as something to avoid than something to engage. Until that's corrected, Starbucks will continue to sink as a company. Plain and simple.

[Pat Nerr]

hmmm... I love that Starbucks is pinning its' hopes on the SBC brand.. the brand that, for the last few years, has been viewed internally as the "bastard step-child" of the company... I can't wait to hear the a$$-talk on the call today...

Howie... you and your leadership team are a joke dude...

Downward

Uncle Nerr

[jac]

it's been how many years since you worked for the company Pat Nerr (Rob Anderson)? Maybe time to move on and devote more attention to your current employer?

Is the entire leadership team a joke? Exactly how many of them do you even know?

[usorthem3]

green-cup do you feel that way about all coffee shops in seattle or just the starbucks locations? are all baristas' this way in washington or are the indie stores better employees?
just curious? i seem to find that due to the economy leveling off somewhat that the area of dallas/ft worth i'm in (5 locations within fifteen minutes from each other) that traffic has returned to levels of before we were paying $4 a gal for gas last year. i believe that the nation is still broke from paying all that to drive last year. just my thought.

[Sedg]

green_cup - I note that you've never actually stated what it is /you/ do. I'd like to know.

That much aside, I don't like to buy discretionary products from Starbucks because the products are no good anymore. I can handle stroppy staff in order to get what I want. What I can't handle is an ever-changing product list and constantly changing menu. Not to mention high staff turnover due to bad management and low staff training due to again bad management.

Ever thought the reason so many baristas are 'rude' is because they're not trained, not engaged in the job, and get no support/encouragement from their management? You seem to have this opinion that every single store partner ever has the same interchangable attitude, but they don't. I've known and worked with a fair few who are lovely people, but have been given no chance to engage with their job or their customers, because labour's been cut so low and each partner is now required to do several things.

[don't feed the trolls]

green cup is a troll

[Herman Melville]

Good luck starbucks on another gimmick. SBC as their savior, give me a break. A corporate tool (from corporate offices in Chicago)took my store and rehired 3 people I fired so he wouldn't have to do too much training so I must agree with dunkin on this one except that this company is being ruined from the top down and the attitude you get is from Baristas and shifts who have had it with "the next big idea" and have decided to do their own thing.

Now with those three idiots back (who were hired by the manager before me and were self-entitled jerks) store morale is in the shitter and the new manager is at his wits end.

Starbucks: where we care about everyones atmosphere but our own should be the new motto.

[coffee drinker west]

it's like Sbux is hedging their bet

[Pat Nerr]

Hey Jac... Glad you're so "knowledgeable". I've actually been a shareholder for the last 18 years, so instead of taking a coward-like poke trying to come off like you know something, I've worked with and know the current team of "leadership"... so, why don't you get back to work and put some value into the stock...

[green_cup]

Yeah, the offerings are pretty bad, but, I think of it as the reverse. I can deal with a harder-than-usual cookie if it's served to me in a friendly manner. Dunno, seems like an insult otherwise.

As for Starbucks vs indie, I find the indie baristas to be, typically, a lot nicer. More grateful, even. Happy to have your business. Again, my perceptions.

[jac]

Really? Which of the execs do you know? Pretty sure I can count several who arrived after you left. The rest are not any you had any real contact with.

Glad you're still a shareholder. I guess you feel the best way you can contribute is to come on this bull board and bash endlessly after your website flailed. I'm betting the ratio of talk to the number of shares held is pretty high.

The current senior leadership team is in my view pretty good.

[Melody]

[quote]Really? Which of the execs do you know? Pretty sure I can count several who arrived after you left. The rest are not any you had any real contact with.

Glad you're still a shareholder. I guess you feel the best way you can contribute is to come on this bull board and bash endlessly after your website flailed. I'm betting the ratio of talk to the number of shares held is pretty high.

The current senior leadership team is in my view pretty good. [/quote]

Wait. So jac how many of these senior leaders - and I mean the ones that hold titles of like "executive vice president" or "CEO" - do you really know?

I wouldn't replace the current leadership, but I'm not happy with everything they've done.

[Karen]

Please green_cup; go patronize those indie coffee shops that treat you better. They’ve earned you!

[green_cup]

Please green_cup; go patronize those indie coffee shops that treat you better. They’ve earned you!

Posted by: Karen | April 29, 2009 at 06:53 PM

I'd highly recommend you'd not provide me with your "advice." Thanks!

[suenderc@fe]

If it means "going red" will keep our "green" store open then I am all for it!Customers will not care what color you wear, just keep pouring the coffee in our community with the same incredible staff and you will hear no complaints from the Almond Capital of the World-Go Ripon!

[Pat Nerr]

Jac... I can tell you're a keeper employee... I'm glad we had the chance to be on the same team... It sounds like you're enjoying your great company to the fullest. If only the good Dr. knew that you regularly visit SG...

I love you...

[usorthem3]

green-cup i understand the hard cookie reference and agree that it is easier to swallow if handed over with a smile. recently i have had great experiences with not regular customers anything from a bold brew request which lead to a half batch selling then the rest of the pound was sold as one whole french press and the rest sampled all afternoon with some pumpkin loaf that broke,during all this a man bought a $900 machine which will give us more labor to work with. it was awesome to have the perfect customer flow for two on the floor to handle and enjoy with patrons. good stuff.

[Sedg]

"Yeah, the offerings are pretty bad, but, I think of it as the reverse. I can deal with a harder-than-usual cookie if it's served to me in a friendly manner. Dunno, seems like an insult otherwise."

I can't. Product has to come first. When good quality product comes in synergy with good service, well then you've got a winning brand. Something Starbucks /used/ to have.

I generally prefer indie firms if I really want to enjoy my coffee - but if I'm in a rush, what I want is a nice hot latte with a good flavour, served by someone with a smile. I'll take a nice hot latte with good flavour served by someone with a face like thunder. I won't take a cup of superheated milk with brown food colouring in it served by someone with a smile.

[jac]

yes, the good doctor is actually the only one you really know now, isn't he?

SG is a fine place to see what people are talking about, provided one takes it with a grain of salt. I do have to wonder though about the former partners still lingering years after they've left. I think it's diagnostic.

[Pat Nerr]

Well Jac, I'm not sure what your point in engaging me is.. to tell me I don't know the new crop of leaders... (which I never claimed to... I just called them a joke for their decisions)... you're mad because I'm still feeling invested and commenting on the continued downward spiral the company is in... Only you know the answer. I will give you this for your next 1:1 with the Good Dr... I'll keep hanging around until 1) I get my investment back and 2) the good Dr. gets either fired or explores other opportunities.

You can also let him know I enjoy Chet's story about how JAK and GN pulled their get out of jail free cards on the Dr. and kept their jobs...

Have a good day buddy

[Sedg]

Jac: For me it's because I still work in coffee, and SG is the best place to track the world's biggest seller.

[coffee drinker west]

green cup is a troll