Starbucks Gossip

It's the I-can't-believe-summer-is-almost-over edition of the OPEN THREAD

It's already August? The Pumpkin Spice Latte fans must be getting itchy. Discuss your summer at Starbucks or anything else SBUX-related in the OPEN THREAD. || Jump to the second page of comments.

Starbucks customers are even picky about their free water!

One of the Starbucks I frequent has a large "customer base" that can only afford to drink free water. I jokingly told the baristas yesterday that, "It sounds like water is your 'best seller.'" One responded: "Yeah, but they demand to have it served their way -- more ice, less ice..." Still, the baristas at this store serve it up with a smile, and you have to give them credit for that. (Although if I were a shareholder, I'd have a different view and tell them to stop handing it out.)

Teenaged Starbucks "bomber" gets offer of 3-1/2 years in prison

The 18-year-old detonated a homemade bomb outside an E. 92nd St. Starbucks in New York last year as an apparent tribute to Brad Pitt's character from the 1999 cult classic "Fight Club." He has until Sept. 7 to accept or reject the prosecutor's offer. || Read "Starbucks bomber gets a grande offer"

A Starbucks customer wonders if bureaucracy is hurting the company

Here's one example from the author: "There is a lot of unused floor space in this particular [Starbucks] shop. I asked employees why they don't just add more tables. The answer: the company won't let them buy any new tables and chairs so they have to wait until they can get furniture if another unit someplace else closes." Is this guy right-on? Or is he just another uninformed customer/pundit? || Read "Is bureaucracy hurting Starbucks"

Weekend OPEN THREAD: Let's get the chatter going!

Profits are up! VIA's selling like hotcakes! The dividend has been increased! Things are looking up -- right? Let us know. Discuss the state of Starbucks or anything SBUX-related in the weekend OPEN THREAD. || Jump to the second page of comments.

Read highlights from Starbucks' earnings call with analysts

Howard Schultz tells analysts: "VIA is now projected to contribute over $100 million dollars to Starbucks' top line in Fiscal 2010, a significant achievement by any measure."

Starbucks CFO Troy Alstead finds a V-word to use with his VIA comment:
"We very pleased by the velocity gains that we're seeing in our key customers. So as we build distribution, as we drive velocity, all those things lead us to be as optimistic about VIA as you’ve heard us speak to."

More from Alstead: "Our business produces a tremendous amount of cash. ...We have a very, very strong cash producing business, strong cash on hand, free cash flow this year, 2010, that will reach probably in the range of $1.2 billion based on operating cash flow of about $1.7 billion." || Read "Starbucks earnings call transcript" || Read Howard Schultz's quarterly results summary

Starbucks says sales up 9% in the quarter, store traffic increased 6%

Starbucks' press release was rosy (of course), but shares fell after analysts detected a a weak outlook. From the press release:
* Starbucks plans to open approximately 500 net new stores globally; approximately 100 in the U.S. and approximately 400 internationally, the majority of which are expected to be licensed stores.
* The company is targeting mid- to high-single-digit revenue growth, driven by low- to mid-single-digit comparable store sales growth. || Read " Starbucks reports record third quarter earnings"

Starbucks quarterly dividend goes from a dime to 13 cents a share

Starbucks' chief financial officer says: "Given the continued strength of our business, as evidenced by record third-quarter earnings and the resulting strong cash flow, we have increased our quarterly cash dividend." Read "Starbucks increases cash dividend"

Actress Kristin Chenoweth calls out a Starbucks barista for being rude

Kristin Chenoweth said said on David Letterman's show last week: "I love [Starbucks] -- I hit every one in the city. ...I Twitted that there was a rude Starbucks person. ...The next thing I know the manager of Starbucks in Missouri of said I'm taking care of it. So i hope she didn't lose her job." || You can watch it here; her Starbucks discussion starts at 1:54 time mark.

* Chenoweth griping on Twitter. June 28 5:45 p.m.: I love starbucks. But sometimes employees don't care and are rude.

* Another 5:45 p.m. tweet: Dalia at starbucks 7th and 31st. Be nice!!!!!

* June 29 12:42 a.m. tweet: Megan from Missouri! [She must be the "Starbucks manager."] Thank you! I love starbucks (heck I even sing a song about it! Haha) and would to see it go down. Xxooxoxoxoxo

* What's the fall-out here? Was Dalia fired? Get dressed-down? Let's hear from NYC 7th Ave./31st St. Starbucks employees.

OPEN THREAD conversation-starter: Howard Schultz says he's "not leaving soon" as CEO

A few things that Howard Schultz told Harvard Business Review:
* "Bloggers were putting holes in the equity of the brand, and it was affecting consumer confidence, our people, everything. I woke up one day and went to my desk, and I had 75 to 100 e-mails and phone calls about an issue I had never heard of. There was a sensational story in the Sun, in London, that Starbucks was wasting water through something called the 'dipper well.'"
* "Our health care costs over the past 12 months were approximately $300 million. The thought that we would cut that benefit -- I couldn’t do it."
Read a summary of the interview or the full interview. Discuss this or anything else Starbucks-related in the OPEN THREAD. || Jump to the second page of comments.