Starbucks chairman's "love letter" to employees has analysts scratching their heads

Analysts aren't sure what motivated Starbucks Chairman Howard Schultz to write a letter [PDF file] to employees, telling them not to be disheartened by recent negative media and online reports. Was it the Consumer Reports taste-test that favored McDonald's over Starbucks? Was the it Ethiopian brouhaha? Whatever, Schultz wrote to his help: "Like many of you, I feel it personally when misperceptions about our company or our intent are circulated." (Seattle Times)

Comments

[jabanga]

maybe it was the shocking discovery that "universal creamy base" is yucky...

[PissedOffBarista]

I think he wrote it because he has his doubts about his company. But he doesnt want to show or acknowledge those doubts lest morale be shaken or be it businesses must continue forward regardless of what is jumping off or on the ship.

Shit's happening that needs to be addressed. I think, this is his way to make sure the solutions come from his best, brightest and most motivated employees. Who knows really. Tis all mere speculation.

[ratnerstar]

Maybe he just has a crush on a hot barista. Most of us do, but not everyone has the resources to woo her in the form of a mass "love letter" to all Starbucks employees.

[Milwaukee Starbucks Rebel]

I finally have a valentine..

[San Antonio Dopio]

Love me, love me, say that you love me.

I think that at least one of Shultz's concerns is that Starbucks reputation appears to be changing, and he wonders if that may result in a loss of pride in working for the company.

Yes, Starbucks is still very popular, but I seem to read more and more negative comments about Starbucks rapid growth and direction of growth which had compromised quality; comments like the beverages and the experience are no longer remarkable.

With Starbucks now being called the "McDonald's of coffee" (with all due respect to McDonald's) it just doesn't reflect that enjoyable "home away from home" image that Starbucks wanted to be...

[BOSTON STARBUCKS REBEL]

Maybe he has been reading the messages on this board and especially mine and he wrote it directly to me.
On Partner Communications, have you ever noticed that Jim (Mc)Donald's messages are so upbeat while Uncle Howie's are so somber and serious?
I am going to go get the entire text of the letter and post here in a few hours.

I feel sad for Shultz, he himself does seem concerned. I am sure he will find the way...I like the man. Here's a vintage memo from the Il Giornale days.
http://brandautopsy.typepad.com/IL_GIORNALE_memo.pdf

[jabanga]

boston starbucks rebel it is linked in its original form to the article which makes me believe it was released to the press.

First, they need to stop and end the DTs (no not that kind). They need to go back to being a damn fine coffee shop with that "third place" feel. They need to end the relentless stream of non coffee or pretend coffee drinks.

[justme]

I read the letter and I think it is just what it is. A heart felt thank you for a job well done. I think he is wise and understands how important it is to express his gratitude for all the things in this world that he loves. That would probably include all of the partners who are working in his dream come true. He appears to me to be a sincere and trustworth person. Mushy...VERY, but I find it so respectful towards the partners that he cares. He's not your direct manager who makes you mad. He's the person who made a business that you are working at, and he's thanking us! I'm gonna send him a green apron card, no cards. We all should. It should be a deluge of card arriving at his office.

P.S. Don't bother writing to say I've swallowed to much kool-aid thats tiresome.

[Nick]

..............With Starbucks now being called the "McDonald's of coffee" (with all due respect to McDonald's) it just doesn't reflect that enjoyable "home away from home" image that Starbucks wanted to be..............

you know, I have been thinking: if Starbucks is serious about creating that 3rd place environment, they should re-evaulate $$$ on labor. Customers would be more likely to stay a bit longer if the store ran more like a sit down restaurant, with partners hand-delivering drinks and pastries to tables. Also why not build bigger bars--with lots of barstools--facing the coffee machines--people love to watch the bar person making the drinks and a barista with a great personality and a little flair could put even a 3rd tip jar at the handoff point?

--my point--
make the new stores bigger, put more tables in, and have a partner work JUST in the dining area.

[NewShift]

Nick, you know, I think you have something there. I think it would be a fantastic idea to have barstools, or a counter area somewhere along the bar. What a great sight that would be for customers walking into the store. I hope that Starbucks is working on some new designs for its stores. Yes, consistency is helpful, but monotony is kind of creepy.

Cheers!

[CuteBarista!]

a lot of the newer stores here in philly (the ones open in about the last four to six months) have bars that face the (back of) the espresso bar. it's kind of nice to have that close contact with customers. one thing i really miss about the LaMarzoccos is that were far lower than the Verismos. it made conversation a lot easier.

[meangranny]

Actually, they have barstools at the newest store located in Duluth, GA. That was the first thing we noticed when trying out the store. The decor was outstanding and was a notch above the best looking ones we have seen in the GA/FL/NC/SC markets to date. I hope to see more of this as it seems to address what has been posted here. In the end, great baristas, great product, great decor and a friendly/honest/frequent customer base will keep Starbucks as the preeminent 'third place' that it rightfully deserves.

[DT]

i like to think that howard's open letter and the concern that it seems to indicate he has, vindicates my leaving

[IslandIllusions]

"Also why not build bigger bars--with lots of barstools--facing the coffee machines--"

Nick... it's an awesome idea but there is no show in working a Verismo... there's no skill involved in it and that's what the espresso bar now lacks. I've never touched a LaMarzocco but from what I see of it, a barista who can properly work that thing has more skill in his/her thumbnail than a Verismo barista, including myself.

[Kelowna Starbucks Rebel]

I wish we still gad good old LaMarzocco...

[SAN DIEGO STARBUCKS REBEL]

let's start a rebellion - BRING BACK THE LA MARZOCCOS!

speak for yourself islandy...

i can put on a wicked show behind the verisimo - both steam wands working, frappuccinnos being blended, a iced shaken in there, and a for here cup spun around my finger before filling it.. ;)

it may've helped that i had 4 years on the lamar before hand, but you can still see skill (or up your own) behind the verismo beast..

[CuteBarista!]

i rock the Verismo.

i also rocked the La Marzocca, but my wrists like the Verismo better.

[BOSTON STARBUCKS REBEL]

A monkey could use the Verismo.

Yes but would the drinks taste alright if a monkey was on the Verissimo?

[SoCAL STARBUCKS REBEL]

I agree with SAN DIEGO STARBUCKS REBEL
Bring Back the La Marzocca. new Baristas Today know nothing of the perfect grind or tamp. The since of pride felt when seeing that perfect shot being pulled and the creama forming along the rim of the shot glass knowing you applied just the right amount of pressure in your tamp. and if you stepped away from the steam wand it was over milk would be everywhere no "auto stop" *sigh* gone are the days when being a Barista actually meant something. it was truly an art form then. the customer always got a truly handcrafted beverage.

joining the sbux rebel alliance

[chi-town's best/angriest barista]

if i walk away from the bar with milk steaming, it ends up all over. but that's cuz our auto shut off is broken. there's really not much of a show i can put on, just waiting for the shots to pull and the milk to get hot enough. kinda boring. but people seem to like watching me drizzle... it's a little werid "oooh, caramel sauce in a fun pattern, i'm mesmerized...!" and there are times i don't want custoemrs watching me. like the creepy ones who get way too close and start demanding things or telling me i'm making it wrong or "that's not how they do it at [insert name of other coffee place here] i want a new one and do it right this time!" but, install a "stupidity guard" and i'd be all for it. tho i think the store i work in may not be the best market for that, we have mostly "grab and go" type customers going to work, and handcrafted ebverages mean less to them than a quick source of caffeine.

[Nick]

what do you guys all think of a partner deployed strictly to the other side of the counter--acting as a "server", and taking care of other things, like clean sweeps and giving legendary, really attentive service...making Starbucks more like a third-place coffee house with more emphasis on the furniture, and french presses of the lineup, and hard menus? This would work well in my store...it's in a very up-scale touristy area about a 2 minute walk from the Gulf of Mexico. Lucky me.

[Jillian]

Our store is very open, looks more like a big glass box, and all of our tables and chairs and even a small counter space, (WITH bar stools) face our espresso bar. The customers watch in rapt fascination, and its a good place to chat with them, ask them about their day, create that 3rd place mentality.
I think a continuous "sweeper" would be a great idea for larger stores, but you're supposed to do a sweep every ten to twenty minutes, (interacting with the customers) right? I've seen people drop a $1 in the box, sit down, have a quick chat with the cafe spin person, and drop another $1 in the box when they leave. Don't hide behind the bar, people! :)

[KGS]

I think people need other stuff to think about.

Get a life, all of you, maybe you should be more concerned as to how your tax money is spent.

and for those who are still after a comment regarding the letter:

if you try to make a phony letter, and say Howard Schultz wrote it, just make sure you get the damn signature at the bottom forged correctly.

[BOSTON STARBUCKS REBEL]

When I first worked with Starbucks I used to have a manager who said, "OK, somebody slide out to the cafe and talk with the customers for the next 15 minutes." Yes, we would be deployed to the "talker" position and ironic that it sounds like stalker but hey it was a great way to get to know the customers because they would say later, "Those Starbucks people are so nice, they were talking with me today. They must not be from around here to be so amicable."

[BOSTON STARBUCKS REBEL]

SoCAL Starbucks Rebel: Thank you for expressing your view in this string and other ones. I'm glad we agree on many things. I also love that the rebellion to return Starbucks to its roots as a "people company" and not so much focused on making a cheap buck and whoring after mammon.
As Captain Picard said to the Borg, "And I will resist you with my last ounce of strength!"

[CuteBarista!]

KGS: get a life? ok, let's review...

half the time you people are complaining about how us baristas don't give a shit about our jobs.

then when we do, it's get a life?

i give up.

i maintain that it is not an easy thing to get consistently excellent drinks on the Verismo. i think i may have mentioned this before, but i am the trainer and bar nazi for my store. i consistently have to go over standards with my partners because they are using expired shots, not steaming milk correctly, etc etc.

and btw, before you grouse about how the customers don't tell the difference, i consistently have had customers tell me that they are so glad i made their drink today and not x (whoever else). it's cause i make really good drinks, and i'm proud of that.

guess i'm lame now, right?

[Panera is the New Third Place]

SBUX does not want to be the third place! Or at least they don't any more. If they did, why do they charge for WiFi? Why is their music so loud? Why did they recently introduce smaller tables?

The answer is the same answer to why they got rid of the LaMarzoccos: business economics - They are interested in serving as many people as possible as fast as possible. And THAT is one of the main reasons they are now being called the "McDonalds of coffee."

Years ago, McDonalds faced the same problems that Starbucks now faces. They answered those problems by 1) building way too many stores and 2) moving customer faster through the stores (drive throughs, value meal numbers AND MAKING DINING ROOM CHANGES THAT SPED UP THE DINING PROCESS (fast music to cause customers to eat faster, chairs/benches that leaned toward the table so customers would face their food so they could remain focused on the task at hand, etc.) The food got large and bland and was consumed rapidly - "savor" was not in the game plan.

Everyone knows where this got McDonalds. It worked for a while, but then it backfired and McDonalds found itself in the dumps. Only recently have they been able to pull themselves out of the hole that they had dug themselves into, but they managed to do some serious damage to their brand - so much so that still today many won't go to McDonalds, despite the company's recent efforts.

Starbucks is at risk. This forum has shown that:

The rapid growth has had an impact on employment issues - with all of the new stores, where are the managers coming from? If from outside of the company, they don't know the values or the "Starbucks experience." With the need for so many baristas, serving so many customers, there's been a need to simplify the drink making process (like McDonalds did with ketchup dispensers for hamburgers, etc.) hence the Verisimo.

Now the Verisimo has many positives and negatives. On the positive side, it is simple to use (so it requires less training). There is less waste (no more bad shots, and no longer need to pull two shots when only one is needed). But the taste is NOT the same. The quality is NOT the same. (which could get me into a conversation about how SBUX is pushing syrups to cover up the taste, but I won't go there on this thread, except to say, wasn't it Howard Shultz who said they'd never offer Raspberry syrup at Starbucks?).

I'm not a Starbucks hater. I go there many times a day. They make espresso accessible for me and I like that. That said, when I'm looking for the "third place" - it's not Starbucks that I turn to, it's Panera.

to chi-towns best. The show is not about how you pull a shot. The show is your personality so use it. Talk to them about... yes them. Ask questions, make conversation, smile and get them to think about themselves and not about what your doing. Haven't you learned it is about them. If your board and feel that there is no show then you are not giving legendary service and you much to learn.

[42peratioshift]

Panera is the New Third Place -

Well put.

As a partner and share holder for 3 years... I have seen drastic changes in that short time.

This letter 'Uncle Howie' wrote... scares the crap out of me. No one at my store understood what he was getting at. If it was a compliment, it sure seemed backhanded.

For someone at his level, there is ALWAYS a reason why they do something. That reason isn't always what they say it is. I got the same feeling from this letter as I do when i see a notice that a SBUX executive has sold large amounts (to me any way) of stock.

Maybe it's advanced warning that we're gonna change our name to:

Jimmy D's?

[darthsid]

Bleah. Verismos plan suck.
I worked with one before and I hated it.

Repeat after me, I am a mindless button pushing drone. McCafe pays better.

I am a mindless button pushing drone..

you're a mindless drone, you're a mindless drone.

:)

[ratnerstar]

If a starbucks employee ever uses the phrase "third place" to my face, I will turn around and walk out. If you're going to use marketing-speak, I might as well stay at work.

[BOSTON STARBUCKS REBEL]

CuteBarista!
I totally agree with you and many customers say the same thing and in front of the other partners about how I make the best and fastest drinks. I refuse to use an expired shot in any drink. If I wouldn't want to drink it then why would I give it to another person?

[Panera is the New Third Place]

BSR and Cute Barista -

Do you think your expertise in making drinks comes from having worked on the old LaMarzoccos? Is it possible that you pay more attention because you were trained in the old "hand crafted" ways of making espresso-based beverages?

Is a LaMarzocco-trained barista typically more "engaged" in the beverage making process because they had to be more "hands-on?"

By no means do I mean to say that all baristas working on Verisimos do not care about the quality of the beverage they serve, but I have seen so many more expired shots served from the Verisimo machines than I ever did at the LaMarzoccos. I wonder if that's because you had to watch the LaMarzoccos to make sure you had the right grind/tamp, and now the "push a button" approach to the Verisimo dis-engages the barista and frees them up to focus more heavily on a different task (rinsing pitchers, grabbing milk gallons, etc) to the point that by the time they get back to the shots, they've done so many other tasks that their main focus is to get the beverage completed vs. ensuring the timeliness of the shot?

Howard once said something about the passion that goes into the cup being transferred to the person who receives the cup. I feel that the Verisimos remove some of that passion. From this thread, I've come to realize that some of that is due to their height (you can't easily see your customers from behind the machines).

But I also think there's something to the task of preparing the shot itself. The more engaged you are, the more concerned you'll be about the outcome. With the old LaMarzoccos, baristas wanted to make sure you got a "perfect shot." As has been noted in numerous threads before this one, speed is now of the essence. More and more is being asked of the baristas. Something's gotta give and I fear it's the quality of the product...

[chi-town's best/angriest barista]

i don't think howie schultz gives a damn about me, you, or anything but the bucks. and i don't mean the starbucks.

Panera, rebel and the others who are stuck on the shot pulling as being the focus of the bar. I have worked on both bars. Unless your drinking a solo or doppio the nuances of the LaMarzocco is lost anyway.

Hear ye, hear ye the beauty of the verisimo is that your focus is not on the complete attention of pulling the perfect shot, It is on the customer and connecting with them at the handoff bar. I don't just mean calling the drink and saying thank you. It frees your mind up to use with them. If you maintain the verisimo, check the timing of your shots several times a day, start with fresh milk, a calibarated thermometer and you only use a fresh shot that is less than 10 seconds old its a really good shot. Nothing to think about constantly.

You've got to keep your eye on the doughnut not the hole.

[jabanga]

anon that is balony. maybe if you are putting syrups in the difference between a shot from a verisimo and a la marzocca is masked but if you are drinking a simple latte or an americano the espresso flavor is every bit as critical. even a 16 or 17 second verisimo shot is never as full-flavored as a properly pulled 18-23 second shot from a la marzocca. never.

[DT]

I've worked on Verisimo's and LaMarzocca's. And honestly, no joke, I found that on a LaMa, even at the height of the morning rush, I was more connected with my customers than I have EVER been on a Verisimo.

Hell, I used to stand there on a LaMa on morning rush on a store doing 23k/wk and have running, hours-long conversations with every single person who wandered by. It was like a goddamm Cheers in there, everyone got a laugh and a smile and a personalized comment that was heartfelt. Now with a Verisimo it's "get em in, get em out."

And that's partly why I just can't do it anymore.

[DT]

and that's not even adressing that my drinks on a LaMa were both a) better and b) made faster than my drinks on a Verisimo.

Frank Peace once told me, in the days right before Verisimo's took over and destroyed the old ways, "I think you're moving faster than a Verisimo."

I am a goddamm barista-John Henry. Best in New England.

[Brookln Dekker]

What a load of crap! What kinda weed is this guy smoking? Kinda like Bill Gates saying Vista is "innovative" and not copying Apple's OS X. They both must be hitting the peace pipe a little much....

[Jon]

When I first learned about the Verismo decision, I thought it was a good idea for Starbucks. I figured that it would speed things up and resolve some training issues. La Marzoccos can make a far better shot, but they can also make a far worse one. I figured that Versimos may establish a quality ceiling, but they would also establish a quality floor, so that the hideously awful shots from incompetent baristas could only get so bad.

I changed my mind when worked at a new DT store. It would seem that as a result of the Verismo transition, apathetic baristas have invented a whole host of new ways to make awful drinks. It resolved no training issues, because it diluted the barista culture so that new ones popped up. At my store, I was one of maybe two people who even knew how long the shot were supposed to be calibrated for. Worse, it took me months to realize this, because no one bothered unless the machines were taking too much time in the drive-thru.

And for the anonymous poster above, I'll say that if you get everything right, the Versimos shots aren't bad, but they're not anything like what they should be. Superautomatic machines like the Verismo have a lot of design obstacles that get in the way of quality, and there are some really brilliant engineers coming up with workarounds and building some impressive machines. The problem is that the Verismo isn't one of those machines. It's built for speed, ease of use, and cheap maintenance, but it's really a lousy machine by any standard of drink quality, and it's cripppled with a dozen serious design flaws so that there's no conceivable way around them.

I'm not surprised there's been a focus on Frappuccinos and flavored lattes since the Verismo transition. Verismos can make passable bar drinks, but the milk and the 'spro can no longer be the star attractions. They just can't. There are a bunch of very good marketing and competitive reasons to have special drinks, but I'm sure that a part of it is the implicit understanding that if Starbucks accidentally started a plain latte craze, almost every other store would be better equipped to compete. For Starbucks, the only way to keep up would be to reverse the Verismo decision, which, unfortunately, is probably a practical impossibility.

For my part, I'm hoping that the rumors are true and there's a Verismo replacement in the works. A Second Coming of the La Marzocco would be great, but my feeling is that even an improved superauto model would help strengthen the old barista culture that is about to die. And that's all I feel confident enough to hope for.

Just the same, my eyes are on you, Starbucks Rebel Alliance.

[jabanga]

DT i think when frank peace took over it destroyed the old ways. personally, i couldn't believe we had an rdo who openly admitted he didn't know much about coffee. the guy just didn't get it.

[Lilith]

You mean the Magistrale? I've heard those have had quite a few problems.

Gotta train folks to calibrate those shots on the Verisimos. And dear god-CLEAN out the steam wands!! Why their isn't a sku'd brush for the steam wands I'll never know. I get mine from rest. supply. Have you ever seen the crap that comes out of a really dirty steam wand? eeeewww.

[DT]

jabanga...that's true. I admit that about Frank Peace. I miss Mr. John Barry. Can't believe that they shunted him off to do warming instead of giving him an RDO-ship.

I never knew you were a NE-guy Jabanga. Boston-area, or off on the fringes of the market?

[Faith]

Howard, why don't you show a little more love, & reach into that bottomless wallet of yours & give us hard working "partner's" our holiday bonus, & disaster pay for the Seattle area "partner's" who were out of work for a week!!