OPEN THREAD conversation-starter: Howard Schultz's options package is worth over $42 million. How are you doing?

Deep in this recent New York Times story, it says:

On Nov. 17, 2008, as Starbucks shares neared lows not seen since the beginning of the decade, Howard Schultz received options to buy 2.7 million shares at $8.64 as part of his 2009 compensation ...Thanks to more traffic in the stores and renewed earnings growth, shares of Starbucks have risen above $24 a share, making his options package worth $42.3 million.

Discuss the Starbucks CEO's windfall -- or anything else Starbucks-related in the weekend OPEN THREAD. || Jump to the second page of comments.

Comments

[Sheila]

Why is it fair that we have to charge customers for changes to their frap if they don't like the new recipe? I think all fraps should be the same price.

[Barista Ben]

if McD's started blending their ice coffees it would taste terrible. Iced coffee doesn't really blend well. You need a base to blend it with. Doesn't McDonalds already sell shakes? Just get them to add a shot of espresso to your shake - or add it on top! I am sure a demand like that wouldn't be hard to accommodate. We do it all the time at Sbux.

Good luck with that.

Honestly, people who would rather go to McD's then sbux? Go nuts. You drink bad coffee anyways who cares where you get it from.

[yeano]

considering mcdonalds does not have shots of espresso, yea...they have syrup based coffee. Gross. And I agree. If you are running to mcdonalds, you never liked the frapp in the first place. There is no comparison. You want to talk liquid and sweet? yea, times 10 on the crappuccinos.

[Coffee Solider]

McDonalds has espresso....My kid was begging for a happy meal and I went in to pick one up and watched a employee making a latte for someone just yesterday afternoon. The machine looked nearly exact to the Verisimo 801's.

[(former) FLA SM]

"We don't care if you don't like it. You're a complainer so go elsewhere." Horrible business attitude.

Yep, it sure is a horrible business attitude. Unfortunately, that's the exact attitude Starbucks takes toward its employees.

[Christinschu]

I can't believe they're changing the name of Vivannos again, along with the cup markings. Seriously?!

[CD]

@Christinschu - what is the change they are making with the Vivanno name?

[noreason]

chocolate smoothie, strawberry smoothie and orange mango smoothie. yea. and all that wasted paper...to make 2 separate cards one for fresh and one for frozen.

[ChristinSchu]

now the markings are CS, SS, and OMS. What is the 3rd time it's changed?

[ewww]

btw, if you think that mcdonalds espresso is real espresso...gag and stay there.

[Christin]

i've never seen a mcdonalds with a verismo-esque machine. The ones I've been to have machines more like 7-11 machines, the only difference is that there is a bean hopper on the top.

[Darth Sidamo]

I cannot believe I am defending the new frappuccino process but here it goes.

@Melody. At least for me it is assumed to this point that a barista has tried the ways they possibly could to solve the customers problem and get their drink right. Some people however will complain just because they get off on being dissatisfied.

A good example is that some customers already have a bias on one certain partner can only make their drink well. While you do have partners that bar better than others, it can come to a point with this customer that somebody else can make the EXACT same thing and they refuse the drink because their favorite barista did not make it. Ive handed the same drink to that person they liked, had them hand it out, and watched them try it as they have said it is much better. This customer refused to ever be satisfied with an unfamiliar barista.

We cannot measure how many sales of a product we have lost because an option was never given like soy. We lose sales from no decaf frappuccinos as well. Starbucks is a business and its goal (which i think is the problem) is to appeal to the broadest amount of people possible, even at the expense of losing coffee purists or a loyal following.

Hence why we only have cameras on the registers and windows but they never aim at where we actually make your drink.

[jamison]

Everyone, don't forget that Howard brought us back! His job is 500 times harder and more imp than yours. Do athletes deserve millions of dollar? Maybe, maybe not, but that's the world we live in. Supply and demand baby. Howard is the ultimate be all and end all. He has taken a ton of salary financial hits to help the company. He deserves the money, if it weren't for him being a baller, most of u would be on the street!

[mike]

Well said, Jamison, well said,
just a bunch of HATERS AND JEALOUS FOOLS OUT THERE! Get a life people

[Melody]

@DarthSidamo - I guess the argument to me has nothing to do whether or not the new Frappuccino will be a success. Over the long-haul, I'm pretty sure that it will be. But I don't want write a book right now and explain that.

I'm more disappointed at the treatment of 'complainers' that I see happening both here and MSI. I tend to believe that these are real and valid complaints that need to be heard and validated. It is the dismissive attitude that 'people just like to complain' that bothers me.

In fact, any research you look at will show you that most people do not complain even when they're unhappy. So for every one person that speaks up at least 25 people said nothing. Think about all the times you yourself could have said something in a restauarant and a business, but just simply decided not to.

You may not like to hear from complainers (not you personally, but rather Starbucks) but that doesn't mean the appropriate business answer is to write them off as some 'squeaky wheel' that nobody needs to pay attention to and listen to. In fact, complainers give a company the only real oppportunity to have some valuable insight on how to make the business better not just for them, but many other customers too.

And, in this particular case, given the massive scale of what is happening with the recipe change and the MILLIONS of customers each week who order a Frappuccino ... millions and millions not just every month but every week! ... it is to be expected that this is a very real and valid outcry of an unhappy group. I suppose I just want to see them treated with more respect than 'so sorry too bad for you.' It's not fake complaining going on here, or a small group of whiners.

The other thing that every store-partner should know is this phenomena that most people will NOT complain face to face in a store. Really, every complainer should be thought of us being 25 voices (some research suggests that 70% of unhappy customers say nothing at all to the business).

Personally, I genuinely believe the new Frappuccino will be a success over the long-term, as I already said. But when I say long-term, I literally mean that it will take a bare minimum of 12 months to normalize the sales, and possibly longer.

By the way, I also believe that in this particular instance, Starbucks probably can and will lose easily a couple million customers over the new Frappuccino. Can Starbucks lose that many customers? Probably so, but it's not to be taken lightly.

[javagirl666]

Melody: I would say generally speaking, you are correct. Unfortunatly, Starbucks has created this atmosphere where even the most resonable person can turn into a lunatic because you didn't double cup their drink..

[Darth Sidamo]

I agree with Java and Melody, I do always take your voice to heart. You do the best job of anyone at considering both points of view before making a decision.

I think the difference is that YOU have never been the person having a customer hyperventilate at you because they zeroed out Soy milk on your order. I know customer frustration is completely different than partner frustration. This being said when I say "just let them be angry and get over it" that I assume to that point that the barista in their area has already tried very hard to help that person solve their issue and that their last resort is to come online and voice frustration. Yes I know what happens when you assume, but as a partner myself this is who I have to side with.

I also agree with you about how many shrug it off instead of ever saying anything. However a person who is angry also speaks 25 times louder than somebody who is content. Do you ever hear what the quiet guy in British Parliament has to say?

Many customers it seems are either pleased by it, or havent even noticed. Infact the only time somebody has noticed so far for me without being told was a chai creme, because less chai syrup goes into it. We added another pump and it was problem solved. The other hundred had no idea. We have a customer who gets a 4 shot mocha frappuccino. When I told him that we can add coffee flavor now in pump form and for much less he was in tears. This guy can afford only two of these a week as he budgets it in as a gift to himself. Now his order is $2.30 cheaper and tastes VERY similar.
We just gave this guy four more gifts a month.

Every change in life with be met with some resistance no matter how much better it COULD be. That is because people are usually more content with the status quo unless that morbidly effects them negatively.

I personally think we should dump the frappuccino period but hey, we all know Sbux would never get rid of their cash cow. They sold their Italian coffee shop soul over this drink.

[Crema_the_crop]

are there any baristas from stores testing/seeding the Drive-Thru LEAN process?? I know it's out there and coming next, so anybody got the detail????

[Melody]

I realize this is a drastic change of topic, but I've been twittering with a barista in Canada who says that there is no more "what is brewing" chalk art now. I guess I should assume this means everywhere and not just Canada. ???

It saddens me because anyone who reads my blog knows that I love barista chalkboard art. It gives the store so much unique personality and makes it warmer and not such a 'corporate feel'.

Is this a permanent change or was this just part of the tour of bold coffees?

Coincidentally, I feature more chalk art in my most recent blog post.

[Darth Sidamo]

Personalized chalk art is "Not Sirens Eye" and is forbidden in my store. I cannot account for others.

[Melody]

That's awful Darth Sidamo. Who wants a TOTALLY cookie cutter experience. There are some fabulous fabulous artists hidden under green aprons.

[Pam Hammer]

Here is a concept that no one has entertained. Instead of isolating and losing the customers who do not want the change to the frappuccino, provide both new and old formulas to the customers and let them choose their favorites. Starbucks could reap the benefits of both selections (duh!!!) Coke finally realized their stupidity and brought back Coke Classic.

[artistbarista]

I know this is kind of straying away from the current Frappuccino topic but since it IS open thread I figured what the heck.

Does anyone know anything about tuition reimbursement? And how it works? Everytime I ask a manager they seem to give me a vague answer or do not know. Much appreciated!

[realitycheck]

@Pam-that is never going to happen for two big reasons 1-high fructose corn syrup. It's gone and it's not coming back, in the fraps or the pastries. Ever. 2-it's completely impractical and would lead to mega waste. No one would know how much base to make each day and every customer would have to be asked which kind. it's not gonna happen.

[Tuition NonImbursement]

artistbarista, tuition reimbursement for me actually has been a crock. theyve given the run around for three semesters and have yet to pay a single cent.

[PintoBean]

@jamison- I totally agree with you! Thanks Howard for bringing our company back with a bang! Higher than expected earnings! Who's doing that in this economy? New accounts with Subway and Burger King. Also working on a deal with another fast food chain to serve SBC. This company is definately on the up.$$

[Pam Hammer]

@realitycheck- Obviously you are not familiar with marketing strategies with this type of business. When Starbucks opens a new store they are not sure which of their products will sell the most, but has to prepare for any request using current trends. Once the customers start purchasing their products a trend, representing the community they are servicing, will develope and stablize product preparation, ending any waste up to this point. As for your other point about the corn syrup ... I wasn't aware you had inside knowledge from Starbucks that this is their final decision. I'm not positive, but I think the corn syrup is not an illegal or banned substance and my be used in various products. Remember ... Coke did have to recreate their origional formula to bring back "Coke Classic". But I do respect your opinion.

[vivavia]

Am I the only one who loves the new frapps? Every single one I've made has the exact same consistency as the one before it.

[Mrs. Tillinghamshackles]

Pam,
Starbucks has pledged to rid all of it's products of HFCS. Also, while nothing of course is final, they did spend 3 years testing these in numerous places. They've invested a lot of time and money into this, and I doubt it would've been launched if they weren't extremely confident in it. But who knows, only time will tell :)

[javagirl666]

Mrs. T is correct..no more HFCS. Sorry, Pam.

[...]

I seriously doubt they will offer the old option. I don't believe there will be enough demand for it. In addition, the customer who are complaining are the minority.

[Pam Hammer]

I am confused about this HFCS phobia. Research shows that HFCS is no more a contributor to obesity or diabetes than any other kind of sugar.
Read a small sampling of what the American Medical Association
has to say about high fructose corn syrup.

"After studying current research, the American Medical
Association (AMA) today concluded that high fructose syrup does not appear to contribute more to obesity than other caloric sweeteners..."

American Medical Association press release, June 17, 2008

"Because the composition of HFCS and sucrose are so similar, particularly on absorption by the body, it appears unlikely that HFCS contributes more to obesity or other conditions than sucrose."

American Medical Association Report 3 of the Council on Science and Public Health (A-08), June 2008

While I can understand Starbucks trying to support healthy eating habits and prevent obesity, diabetes, etc., simply eliminating one ingredient is not going to make a huge difference. People will just go elsewhere to support their habits. According to medical research, overconsumption of ANY food or substance may result in the same diseases. So if Starbucks has decided to police the public's food choices, the next thing they will have to do is limit the number of drinks or food products each customer consumes per week. So you will have to establish a data base with information on each customer and their food choices, and then cut them off before they reach the "danger level". OK, I know this is ridiculous, but so is trying to regulate the health habits of free Americans. LET US CHOOSE. Cigarettes, alcohol, fried foods,lack of exercise, and numerous other bad habits kill people a lot sooner and are more dangerous than HFCS. As a company, why not just concentrate on making money and giving the consumers what they want...then everybody is happy. Starbucks should be too business-savvy to just jump on the latest health trend bandwagon and kill off a product that's working.

[realitycheck]

@ pam-erm honey, how old is your info? New studies have shown that it is far worse for you than good ol' sugar. FAR worse.

[Pam Hammer]

Realitycheck, darling, I must apologize that my research is already 2 days old (see below). I could inundate you with dozens of pages citing additional similar conclusions, but I assume you are familiar with researching the internet. The consensus is that HFCS is no better or worse for you than any other sweetener. What's really going on here? Why would a mega company like Starbucks risk losing millions of customers and billions of dollars over a fad? Remember the panic over eggs and high cholesterol? Suddenly eggs were a pariah and no one would touch them for a number of years. Now eggs are back in our good graces because more studies have contraindicated the results of the first ones.

“The HFCS used in most foods and beverages is similar to regular table sugar in terms of sweetness, calorie content, and composition. … Retailers should help consumers focus on foods and beverages that are the major contributors of added sugars in general and not fixate on those that contain sucrose versus HFCS. Along these lines, common sense indicates that consumers should moderate their intakes of sweetened beverages, desserts, and sweets. The only real connection between diet and weight gain and obesity is consuming more calories from any source than the amount burned by the body in daily living.”

Frances H. Seligson, Ph.D., R.D. Adjunct Associate Professor, Department of Nutritional Sciences, the Pennsylvania State University
Food, Nutrition, & Science from The Lempert Report, April 26, 2010

[realitycheck]

Research on the Internet? THAT is your source? No wonder you are so confused! HFCS is NOT the same as raw or even table sugar, our bodies do not process it the same way.

[Pam Hammer]

And YOUR sources are...
So far, I haven't seen anything from you but argumentative rhetoric. I really was looking for some answers but, obviously I'm not going to get anything from you but your own inflated opinions. If you had bothered to do any research on your own (internet or otherwise), you would see that the majority of professional opinions are now reflecting the conclusions that HFCS, sugar, sucrose, or most common sweeteners used today, ARE in fact processed in very similar ways. One is not any worse for you than another...it's all about moderation. HFCS is just the latest "bad guy" in the media. Remember when sugar was the target? That's when saccharine was pushed down the public's throats and look how that turned out! Anyway, I'm sorry you have such a problem accepting other people's opinions, but in my humble opinion, Starbucks is making a big mistake which will be reflected in their bottom line if they don't at least reconsider, listen to their public, and get ALL the facts before they completely alienate the very people who have put them at the top.

[realitycheck]

I don't have to answer you. Starbucks has taken their stand, based on facts, and they are not going to change that. Fact. it's time to move on.

[javagirl666]

Who cares about "internet research"! I'll take something unprocessed over chemicals any day.