Starbucks pays about $10 million to be the official coffee of MSNBC's "Morning Joe" program

This strikes me as a smart move -- it's basically a non-stop commercial for Starbucks. There will be several Starbucks graphics and mentions during each hour of the 6 to 9 a.m. show. Also "Morning Joe" might be broadcast from Starbucks locations when it travels. Howard Schultz calls the deal an opportunity to "align ourselves with, in my view, one of the smartest morning shows that air on TV." Read "Starbucks pays for product placement on "Morning Joe" || Watch Schultz's "Morning Joe" appearance

Comments

[MediaExpert]

Hmmm...not so sure about that. The value (in this case, the $10 million number) ascribed to a branded content deal like this is almost always much higher than the actual deal especially between two major brands, like Starbucks and MSNBC.

[money+greed=morals?]

how much "in store labor" could $10,000,000 bring for better customer service? only time will tell if this is a good investment along with the $100,000,000 spent on the new ad campaigns.

[MediaExpert]

Where are these numbers coming from? Starbucks has said (look at its Q2 earnings call statements) that it isn't increasing its marketing costs.

[SBUX Alum Bill]

Starbucks has always been on the leading edge of product placement in movies & TV. I think it's played a huge role in the growth of the brand. This is just a logical extension of what the company has already done in the past.

Howard, as usual, also gave a great performance in the interview. For those who don't know how the company actually operates, he sounds quite sincere & believable.

[Bdan]

Wow...another deal between Howard and a fellow big shot...love the stuff about "you and Griffin just did this deal on a napkin"...that's pretty much how every major "strategic partnership" in conceived. I wonder how many hours the marketing and PR people spent trying to talk him out of it and once that failed, how much more time they spent trying to make sense of it?

Also...Morning Joe?? Really?? How relevant is that show to the coveted "Gen Y" demographic I thought Starbucks was going after with the next version of its digital strategy?
Makes about as much sense as anything else the company has done since the "return" of H.S.

[OCD]

I am the only one to get sick of the ubiquity of this damned coffee shop chain ? This brand has diluted its image beyond the point of non-return.

[inopethflames]

well, no one watches msnbc, ud think if sbux was going to do something like this, theyd do it on fox news, which gets a much higher viewership than msnbc. i suppose the leadership at sbux are big time liberals and wouldnt consider doing a deal on fox news even though that would make more business sense. probably part of the reason sbux has had issues the past couple years. $10 million is a drop in the bucket anyway so it probably doesnt matter one way or the other.

[Dunkin' Dough Nut]

Never heard of the show

[BOSTON STARBUCKS REBEL]

I seriously wonder why Fox News wasn't approached when it has been shown that Fox has much higher ratings than MSNBC?

[BOSTON STARBUCKS REBEL]

It's interesting to note that Fox & Friends has three times as many viewers as Morning Joe, yet Starbucks decided to support a known liberal and biased news network. I think to make this fair and balanced is to have them do a product placement on Bill O'Reily or Sean Hanity.

[LEGENDARY OR BUST]

In the morning, MSNBC has comparable ratings to Fox. It's in late PM that Fox runs away from the competition. Plus, Scarboring is kind of a conservative albeit he expressed his love and adoration for Hillary last year. But, then, it was understandable since we were comparing her to Obama -- in the words of Ann Coulter, Hillary WAS a conservative.

So, back to Scarboring -- he is, at best, a moderate.

An OK show that gets quoted a lot on talk radio if you listen...

[SBUX Alum Bill]

@ BSR

I don't think there are many networks that would agree to the sale of naming rights to their news shows. One of my friends is a local news anchor here in Seattle, and she has signed a contract expressly forbidding her from making any commercial endorsements (it compromises the appearance of objectivity). I'm not sure if Howard could have cut a similar deal with anyone else in the news business. Can you think of another news show that has sold its naming rights?

[Christin]

money+greed=morals?: 10 million would have bought approx. 0.3 hours per day of extra labor per store for the company.....enough to do prep, maybe.

I think this is a good move. It probably was MSNBC partly because of idiologies, but also for the price tag. More viewers at fox means it would have cost more. They probably figured this was the most value for the buck. Also, perhaps they studied what viewers were more likely to frequent starbucks out of the networks. I know I've worked at 7 stores and most of the customers were of a more democratic/liberal leaning from my discussions. There were some conservatives, but not many. But that is my very unscientific survey of our customers, lol. Even look at the news papers we carry, usually the more liberal out of the available selection.

[Christin]

Oh and as the article claim, Scarborough is already a Starbucks supporter.

I didn't see how long this deal is for anywhere...does anyone know?

[BOSTON STARBUCKS REBEL]

The Brewed Coffee Availability Better Way was developed from store partners’ ideas for improving the Brewed Coffee process. We introduce this Better Way based on the problems you have observed in your stores and from the Brewed Coffee Problem Solving Activity following the Leadership Conference in October 2008. This Better Way addresses the problem of not having fresh coffee available when the customers order it.

The Better Way Blueprint

Write each of the Better Ways we are introducing, we will ask you to:

v  Go see, spend time observing the current method of work in your store and record measurements.

v  Familarize yourself with the example Repeatable Routine.

v  Make adjustments to the Repeatable Routine and customize the work method for you store.

v  Go See the new work method and validate your improvements.

v  Document your Repeatable Routine and ensure that it is a consistent way of doing the work that can be taught and performed by any partner.

v  Teach your store partners the Repeatable Routine.

v  Sustain and coach the Repeatable Routine in your store.

v 

Continue to Go SEE and improve the method of
work in your store.

Brewed Coffee Availability Better Way

The Brewed Coffee Availability Repeatable Routine is a starting point that will enable store partners to:

v  Ensure Quality: achieve existing standards and ensure quality.

v 

Prevent
Outages: decrease the number of Brewed Coffee outages so we can serve our
customers the Brewed Coffee they want, when they want it.

v  Reduce Waste: decrease Brewed Coffee waste and pre-ground coffee waste.

v  Repeatable Process: simplify the coffee brewing process to make it easier, less burdensome and repeatable for our partners.

The Brewed Coffee Availability Better Way is a significant change to the way stores brew coffee today. Many of the changes required to make this Repeatable Routine successful require a different way of thinking.

Here is a preview of major differences in the Brewed Coffee Availability Better Way.

New: Brew coffee on a set schedule. Partners brew coffee based on many signals, which create significant complexities for partners. Establishing a frequency for brewing coffee removes the complexities and allows partners to focus on quantity and quality. Partners are too stupid to use basic math to generate statistical projections and extrapolate when it’s necessary to brew more coffee. In other words, partners can’t seem to figure out that when the urn is almost empty you better brew some more coffee.

New: Servers rotate through different coffee types. Dedicating servers to one coffee type creates coffee outages, forcing our customers to wait, choose another coffee type or leave. Rotating servers allows for a coffee type to brew while still having the same coffee type available for customers. This enables our customers to have the coffee type of their choice. Never mind that cross contamination may occur if the previous coffee has not been properly rinsed out. For example, what if Sumatra was brewed in there beforehand and then some is left that can contaminate Pike Place Roast or decaf contamination? The problem of cross-contamination no longer matters since Starbucks has realized customers really can’t tell the difference.

New: One timer indicating when to brew coffee again. Multiple timers often complicate partners’ responsibilities and are difficult to manage. Using only one timer to indicate when to reduces the number of signals partners must manage while brewing. We will no longer have 5-6 timers beeping all together instead, only one timer to every 5-6 minutes going off. Cuckoo, cuckoo!

New: Use one brew head to satisfy demand. Using both brew heads can potentially increase the amount of coffee produced but can limit flexibly when it comes to special demands Using only one brew head leaves the second brew head available to brew for coffee travelers, prepare iced coffee or recover from demand spikes. I really think this will complicate things exponentially.

New: Grind coffee immediately before brewing. Forecasting our coffee demand is a complex process that often involves a lot of guesswork, which leads to waste. By building this process into the Repeatable Routine, we can reduce the guesswork and the waste, while increasing the quality of our Brewed Coffee. This is possibly the worst one of the entire lot. I mean does this mean for each quarter batch I’ll have to step away from the register to measure, grind and then brew the coffee. Does this even take into account that sometimes the grinder is being used so therefore, this would throw off the entire “cadence” of brewing the coffee? “Excuse me for about a minute while I brew some coffee. No you just have to wait even though you want a triple venti sugar-free vanilla non-fat extra caramel whip cream caramel macchiato.”

 

[BOSTON STARBUCKS REBEL]

I do agree that Hilary was in fact the most conservative presidential candidate, which is truly ironic considering she is a woman from New York and married to the largest womanizer out there.

When Bill enters a room, "Womanizer" should play in the background.

[BOSTON STARBUCKS REBEL]

"I amar prestar aen…
The world is changed.
Han mathon ne nen…
I feel it in the water.
Han mathon ne chae…
I feel it in the Earth.
A han noston ned gwilith…
I smell it in the air."

"Much that once was is lost. For none now live who remember it."

"And nine, nine rings were gifted to the race of Men — who above all else, desire power."

[BOSTON STARBUCKS REBEL]

"And some things that should not have been forgotten were lost."

"History became legend, legend became myth, and for two and a half thousand years, the Ring passed out of all knowledge. Until, when chance came, it ensnared a new bearer."

[Melody]

@Boston Starbucks Rebel - Thank you for posting the new brew routine, including commentary!! Wouldn't it make sense to invest in more brewers so that you could have one or two staged to go for bold or decaf (you know your customer base best) in the afternoon - grounds in it, ready to go. Thus, you don't waste pot after pot, and worst case scenario you wasted one quarter batch of grounds. Spend more money on brewers? I know a few Starbucks that have more than 2 brewers and the baristas seem really happy to have extra brewers. This idea of grounds staged ready to go also minimizes customer wait time.

How many brewers does $10 mill buy you? LOL. j/k.

So I am watching the interview clip that is linked by webmaster-Jim ... Howard Schulz on the Morning Joe. Okay, some one else tell me, what did they do to Howard?? He looks different? Is he wearing a ton of moisturizer and make up? Did Botox? Did he dye the gray out of his hair? The man is all over the news, and in that interview he looks like he is 10 years younger than before. Call me crazy. Please. First Tori Amos turns to Botox, and now Howard??

[??]

Is it just me or has brewing coffee become some impossible task...I don't understand what's so difficult, take the ground coffee, put it in a filter, slide it in and hit the button!!

WOW

[LEGENDARY OR BUST]

If it is Botox, at least it looks good on him. Think of the nightmare that were pictures of John Kerry -- not to mention Nancy Belalugosi (Pelosi, that is)

[?]

Isn't Ellen always promoting Starbucks on her show as well??

[BOSTON STARBUCKS REBEL]

I really think that the Coffe and Bever department got together and figured out the best ways to confuse and make being a barista harder.

[Bearista]

I like it!

[LEGENDARY OR BUST]

Starbucks was all over the place in prime time this past spring on Apprentice Celebrity Season 2. EVERYBODY was drinking the bucks -- Joan Rivers, Annie, Clint Black -- I noticed baristas would often write on top of their lids which I find kind of tacky and wouldn't do personally.

[SBUX Alum Bill]

@ LEGENDARY OR BUST

The only people that weren't drinking the bucks were the regular SBUX customers, who staying away in droves.

[Coffee Soldier]

Howard does really look like he's had some sort of Botox or maybe a face lift! Compared to the last video sent out in stores or the video on you tube of him chatting with the partners in the new Heritage store where he looks ragged and old something is different. Next will be hair plugs! or I think he should just shave his whole head...the receding hair is not doing him well!

[Melody]

@Coffee Soldier - That really looks like botox during that morning Joe vid! He can't fully move his face!! I liked the wrinkles. They're real and genuine, and okay, I can say this, he's a camera-friendly guy ... he doesn't need any botox. But yep, that you tube video with him at the Heritage store is the real Howard Schultz! I feel the exact same way about Tori Amos. The woman is beautiful. I don't like the photos of her all botoxed up (Beekeeper tour?). I think wrinkles are okay. It's going to happen to all of us.

[Melody]

http://blogs.starbucks.com/blogs/customer/archive/2009/06/01/morning-joe-amp-starbucks.aspx

^ Link to the official MSI blog entry on "Morning Joe – Brewed by Starbucks"

[BOSTON STARBUCKS REBEL]

I think what you all did was you were missing the wires coming out of the back of his head.

Resistance is futile.

[Nobucks]

Isn't that show right-wing politically?

[AmericanoMan]

Add me to the enlightened folks that feel that the $10,000,000.00 would be better spent to improve customer service or if it must be spent on "product placement" then Fox & Friends would have been better (people other than leftwing liberals drink Starbucks).

[who cares]

Starbucks Lay's-Off Partners, "O" will who cares.

[Bored already...]

That adds up to 1,000 barista jobs that had to be cut for this worthless programing. I'll give it one season before it is off the air due to low ratings. No one wants to watch a 3 hour long commercial.

[Coffee Soldier]

Remember the JOE Magazine....This seems like it will be a similar situation....long gone and forgotten very quickly.

[The Haimster]

In my mind there is no smarter move for a struggling company than to align itself with a partisan news organization.

If only there was a cheaper and more effective way to politicize a product in order to alienate more potential customers.

Maybe they could get some kind of deal with Al Jezera? Possibly free coffee in all Planned Parenthood locations?

If Howard is interested I could come up with lots more ideas along this vein.

[The Haimster]

What others are saying...

From another blog:

"It just so happened that I was standing in the Seattle 6th and Union Starbucks when they first tested this idea a few weeks ago. They have embedded a TV in the menu board of the back wall so you HAVE to watch MSNBC when standing and waiting in line.

Next to me were around 8 Starbucks Suits looking all happy with themselves….I turned to them and said “THAT is the stupidest thing I’ve ever seen” and then turned back to the cashier and said, “This is my last cup of coffee from here so, make it good.” It actually shut everyone up….lol

I used to go into that store 2-3 times a day, often taking my employees and buying them coffee…and I used to buy a couple pounds of Sumatra every few weeks… but, I haven’t set foot in the store since. Starbucks is dead to me: IF YOUR BUSINESS ISN’T POLITICS, KEEP POLITICS OUT OF YOUR BUSINESS."

[BOSTON STARBUCKS REBEL]

I'm not saying that Starbucks is wrong for deciding to align itself with a news network that has a known liberal-biased but it should be fair and balanced and possibly not even get into a way that people report the news. Granted that Starbucks nationwide carry the New York Times which is possibly the ringleader of them all, but still it should carry a more conservative alternative.
Isn't that Starbucks is all about customizations and choices?

[ROFLMFAO]

Christin- so it makes sense to pay him for what he has already been doing for years? that's what a college degree teaches? glad i went out and lived life.

BSR- wait until you get the customized frappaccinos and they tell you it takes longer but make sure your speed of service is in line with standards. reality 101 and don't forget that last year we were told NEVER call vivanno's smoothies, well guess what they are called now----VIVANNO SMOOTHIES! although in my years of culinary experience that is in no way what a smoothie is.

melody i could figure it out but his face is starting to look like karen's off of will and grace no movement or true emotion. hit that right on the head.

The Haimster- i would have given $10,000,000.00 to see that in person, i wish i could shake your hand and buy that last cup of coffee. From the Pike Place roast rollout last april it seems that some others have given up on the company as well. i am currently not giving my money to a couple of businesses as well due to service or quality issues as i suspect a lot of sbux customers have. core values gone and so the brand must be sold instead of selling itself.

[Christin]

He was a supporter of starbucks already, but not to the extent he is going to be now! Before it was just a cup in his hand, now it's going to be logos, sponsering of segments and more. Not the same thing. And now he's required to do it, it's not optional. Befoer he could have just stopped.

[Sedg]

BSR - quite possibly, but Fox News is the least fair and balanced news service I've ever seen.

Personally, I think a rolling news service in a coffee shop is a good idea, though I'm struggling to see how it fits into the third place ideal. Also, it could possibly be more subtle than a screen dead in the menu board.

[CamSpi]

The anchors this morning were drinkin' out of paper cups. C'mon Morning Joe. Get with the program. Get yourself a Starbucks logo tumbler.

[katiya]

Mika, Willie and Joe have been drinking Starbucks for as long as I have tuned in. Joe has put on a little weight with those frappuccinos. How does it feel to be a whore for the BUX Joe?

Since I have been in Seattle I have known Starbucks to be liberal but I really don't need it shoved down my throat when I go in for a chai or passion tea. Khrist. If I ever go in and a political station is on I'll walk right back out of there.

The poster above is right if your business isn't politics than keep your politics out of business. I supppose Joe can't use that argument lol...