Starbucks chairman warns of "the commoditization of the Starbucks experience"

Starbucks chairman Howard Schultz wrote this to CEO Jim Donald earlier this month. The memo's authenticity has been confirmed by Starbucks.

From: Howard Schultz
Sent: Wednesday, February 14, 2007 10:39 AM Pacific Standard Time
To: Jim Donald
Cc: Anne Saunders; Dave Pace; Dorothy Kim; Gerry Lopez; Jim Alling; Ken Lombard; Martin Coles; Michael Casey; Michelle Gass; Paula Boggs; Sandra Taylor

Subject: The Commoditization of the Starbucks Experience

As you prepare for the FY 08 strategic planning process, I want to share some of my thoughts with you.

Over the past ten years, in order to achieve the growth, development, and scale necessary to go from less than 1,000 stores to 13,000 stores and beyond, we have had to make a series of decisions that, in retrospect, have lead to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand.

Many of these decisions were probably right at the time, and on their own merit would not have created the dilution of the experience; but in this case, the sum is much greater and, unfortunately, much more damaging than the individual pieces. For example, when we went to automatic espresso machines, we solved a major problem in terms of speed of service and efficiency. At the same time, we overlooked the fact that we would remove much of the romance and theatre that was in play with the use of the La Marzocca machines. This specific decision became even more damaging when the height of the machines, which are now in thousands of stores, blocked the visual sight line the customer previously had to watch the drink being made, and for the intimate experience with the barista. This, coupled with the need for fresh roasted coffee in every North America city and every international market, moved us toward the decision and the need for flavor locked packaging. Again, the right decision at the right time, and once again I believe we overlooked the cause and the affect of flavor lock in our stores. We achieved fresh roasted bagged coffee, but at what cost? The loss of aroma -- perhaps the most powerful non-verbal signal we had in our stores; the loss of our people scooping fresh coffee from the bins and grinding it fresh in front of the customer, and once again stripping the store of tradition and our heritage? Then we moved to store design. Clearly we have had to streamline store design to gain efficiencies of scale and to make sure we had the ROI on sales to investment ratios that would satisfy the financial side of our business. However, one of the results has been stores that no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store. Some people even call our stores sterile, cookie cutter, no longer reflecting the passion our partners feel about our coffee. In fact, I am not sure people today even know we are roasting coffee. You certainly can't get the message from being in our stores. The merchandise, more art than science, is far removed from being the merchant that I believe we can be and certainly at a minimum should support the foundation of our coffee heritage. Some stores don't have coffee grinders, French presses from Bodum, or even coffee filters.

Now that I have provided you with a list of some of the underlying issues that I believe we need to solve, let me say at the outset that we have all been part of these decisions. I take full responsibility myself, but we desperately need to look into the mirror and realize it's time to get back to the core and make the changes necessary to evoke the heritage, the tradition, and the passion that we all have for the true Starbucks experience. While the current state of affairs for the most part is self induced, that has lead to competitors of all kinds, small and large coffee companies, fast food operators, and mom and pops, to position themselves in a way that creates awareness, trial and loyalty of people who previously have been Starbucks customers. This must be eradicated.

I have said for 20 years that our success is not an entitlement and now it's proving to be a reality. Let's be smarter about how we are spending our time, money and resources. Let's get back to the core. Push for innovation and do the things necessary to once again differentiate Starbucks from all others. We source and buy the highest quality coffee. We have built the most trusted brand in coffee in the world, and we have an enormous responsibility to both the people who have come before us and the 150,000 partners and their families who are relying on our stewardship.

Finally, I would like to acknowledge all that you do for Starbucks. Without your passion and commitment, we would not be where we are today.

Onward…

Comments

[StarbucksInvestor]

I want Starbucks to stop playing around with politically correct movies and books and focus on the coffee. Akila and the bee? Give me a break! How does this movie make people buy Starbucks coffee?

Otherwise I find myself enjoying Pete's more.

Another suggestion, I am a big drip coffee drinker, and the machines for making Pete's drip coffee (at least here in Redmond) are better than the regular drip machines in Starbucks. But the machines are large, require special plumping, and take up a lot of counter space.

[wsj_reader - sbux_drinker]

The now confirmed memo from Howard Schultz couldn't be more true, to the point, and necessary.

As the company has expanded, the mission has become watered down.

Stores have lost their personality.
Baristas have lost their skill.

This has happened so much that NPR has created a parody of the Barista as a measure of the Economy called the "Bad Barista Index." I wish it weren't true.

As a lover of coffee, I don't care if the Barista knows my name, writes everything down on the cup correctly, or corrects the call on the latte from non-fat to skim milk... I want them to pull a good shot of espresso, and as Starbuck's has expanded, the experience has become more about the fashion of being at Starbucks rather than about the coffee. It was the coffee that got people there, and it is the coffee that will keep people there.

Here is the link to the NPR audio. Don't get upset if you are a barista.

http://www.npr.org/templates/story/story.php?storyId=5073210

I post the link as much in the spirit of NPR's parody as I do in the example that it shows. Starbucks coffee has become more about the branding of the name and image and less about the coffee. That is a fact. Howard proved it with the memo.

Sadly, as this commidity has become more and more of a market force, independent coffee shops, trying to replicate the success of Starbucks, have not been able to succeed in mid-level markets. Starbuck's has meant their death sentence. For coffee drinkers, it means that we have fewer quality choices.

When I think that Dunkin Donuts and McDonald's are becoming Starbuck's biggest threats to coffee consumers, I know that the coffee lover will be the one to lose.

At that point, Starbucks may have alreay lost.

[changes]

i also felt the death wave coming after 3 years ...i have found another job that...dosent disrespect me....
as i stated in aresponse post a day 1/2 ago on the t shirt topic...I expalined how they need to be more concerned about how the are DOING AWAY WITH OUR HOURS TO DO AWAY WITH OUR HEALTH CARE...and how we are expected to drive 15 to 30 plus miles to solicit work at other stores since we only get 12- 15 hours and have OPEN AVAILBILITY?????
ON OUR DAILY COVERAGE SHEETS....IT SAYS...

"SELL THOSE SANDWICHES TO EARN LABOR AND HOURS FOR YOU AND YOUR PARTNERS??""
What????? this is a coffee shop...how about staffing correctly instead of strong arming the managers into punishing us and our income and our employment because they have to watch labor...we are all short staffed!!! we can use a 5 man floor instead of a 3 man yes even in the "slow" part of the day we can clean so we stop failing our Eco Sure audit...I feel bad for the managers who are being bullied into creating such horrible work environment...we are upset because we loved the company...we are being tyold that we are not good enough people or poartners to work for the sake of work and being treated like adults who want to work aand get hours and be staffed correctly and not feel like we have to be running people in and in 3 minutes...or any way ...we will geet punished???what if the partner on register is explaing a new pastry or new drink to a customer...uh uh being legendary and sincer? that took 1 minutye and half before the customer ordered...now the idiot snapshot person is gonna mark us down because from the time they started to stand in line till they got there drink ...it was 4 1/2 minutes....no.
Howard you can not have it both ways...I can tell you more of the older partners are leaving here a type of execdous...because of the stressful and unreaslistic micro mangement demands you all make on us ...you want 100 % at work...we used to give it to you...but when you all don't give us 100% in at least keeping us at 240 hours....so we loose our insurance we will have to sadly leave...
please be forthright and explain that the awesome generosity of insurance for part timers is now finacially determental....we all know that in the last 2-3 years you all have paid more for insuarnce that product.....
If you all were to be more honest and sincere and make the prudent business descion to come clean and explain to us all that sadly the insurance elibility has changed...we all would respect and understand more than you give us credit for....please stop taking away our hours so 'inadveratly" we are not even part time...when we ask to be able just to get 240 hours.
THIS IS MEANT MOST SINCERLY

[formersbux]

A few people have already pointed out that there are a couple of grammatical errors that lead me to believe this was not written by him. He uses the word "affect" - should be "effect."

Ditto on any mention, or lack thereof,
of the 3rd place.

Given how passionate that he is, or should I saw was(?), about partners the fact that they are not even mentioned would lead me to believe it is not real. Their experience has been compromised by poor leadership, and we all know that it rolls downhill.

Senior leadership has changed dramatically. The "culture" is no longer alive and vibrant in my area. It is dead, dead, dead!! That was what made Starbucks so special to me for so many years - and it no longer exists.

[HopkinsBella]

Regarding the "Third Place" ideal, which has been around for years, it is truly the one ideal that Starbucks has never achieved for me at any location I've visited--even when I became a regular customer 12 years ago. Prior to ALL the other changes that have occurred in the past 12-15 years came to fruition. I have never gone to a Starbucks for the ambience, although I do not mind it. I can have brief, informal business meetings (and I do) at Starbucks, but I don't feel the desire to hang out to relax when I go in at other times to get coffee. Even in college, if I had a group that needed a caffeinated study session and wanted coffee, Starbucks was not our choice. The store layouts can be very nifty and trendy (the aforementioned layout and design changes listed in a couple posts earlier in the thread); but comfort, relaxation, conducive calm are not with the business. Hence, not a Third Place to me, no matter how much I like the employees, or how good the coffee is. I can't fit into a cup, so the coffee itself cannot work as even a metaphorical Third Place.

I know Doug Zell at Intelligentsia got a mention on the Starbucks page. I think Doug's been the smarter man in coffee for at least the past two years, rather than Howard. Heresy, I know.

[John]

I used to go to Starbucks years ago. I stopped when they put in the automatic expresso machines. The expresso is CRAP. It always tastes the same in any store and it is always CRAP. I can make a better expresso with Illy powder and a $150 Braun expresso machine. Most people don't know the difference because their drinks have so much sugar and milk. The drip coffee is fine but a coffee house that can't make a decent expresso is not a coffee house.

[Nathan]

I know this is legit as I have friends at corporate who verified this for me.

I worked in sbux stores for 10 years and completely agree with what Howard is saying. When I first started, it was all about the experience. Everything I was taught back in 1995 was slowlyw ashed away as their primary goal moved towards speed of service(which according to many studies is what customers want more than anything else; sad isnt' it?).

I really hope that it moves back to it's roots, because only one out every ten drinks meets my expectations and well, the experience; what experience?

-Disheartened coffee aficionado.

[Starbuck's Soulsucked]

You know, I used to work at this company. I have worked at independent places and would consider myself a true Barista after being professionally trained by Alterra Coffee Roasters. In the end, I felt like this place sucked my soul out everytime I walked through the door. The coffee was never very good. All the people I worked with agreed that there is way better coffee than a scalding cup of water that tastes like burning hair. And That's just the coffee I speak of, not the espresso shots. There's still no good substitute and appreciation from a perfectly pulled shot with a nice golden crema. In fact, I can see that much of the time the crema is nonexistent, which would indicate a really horrible tasting shot. tsk tsk.

It depressed me to work for this place. It depressed me because in the end my skills didn't matter. In the end I was basically told I had to wear a fake smile and give the customers what I knew to be a mediocre beverage. The Starbuck's Experience you speak of is essentially a marketing strategy, I learned this from advertising (although starbucks doesn't advertise). The strategy doesn't target customers to buy things, it targets employees to think that there is something great in the bohemoth company that overtakes all that is good in a cafe experience.

I was told that I could move on up in the company. In the end I never moved up despite my skills, because I valued my personality way too much.

Luckily everyone I worked with that had the character I value in a person, has left, with minimal damage to their core values.

-Starbuck's Soulsucked

[yenzen]

Okay, after reading all of this, I feel I must pop in as well. Forgive me if you've had enough.

Howard never wanted Starbucks to be BIG. He wanted everyone to have the same romantic espresso experience he had when he went to Italy for a convention way back in the day (read Pour Your Heart Into It). If you have ever talked to him, you know how passionate he is about coffee--I was fortunate enough to meet with him a year and a half ago and he spoke on this very subject. He is deeply concerned with the loss of the word in the middle of the company name. It was past time for us to get back to it then, it is way past time now.

However, as a store manager, I take that as my personal responsibility. (Boston, I relate to your posts.) I have been with the company two years now, so never experienced the "old days" of the hazardous, injury- and repair-cursed marzocco machines. But it is my purpose to fulfill the company's core purpose: "to provide an uplifting experience that enriches people's daily lives." I am ready, willing and able to fight my DM (and already have) over labor, focus when driving sales and suggesting new items, etc. in favor of providing that experience. What is he going to say, no? It is why I joined the company, what makes us unique, and what fills the buckets of our own lives as well as those around us (partners and customers alike).

We have a couple of problems here, and they are all our own fault. The company has grown faster in size than in culture. The training materials are insufficient. The training time is insufficient. The inner promotion rate is horribly low. We are having to hire folks from outside the company who have great tools to manage business, but don't have the spirit to manage our business. I am concerned, and unfortunately don't have the slightest clue as to how to answer this conundrum.

Outside of to keep doing what I am doing: make a friend, make a difference, make someone's day. I can only change things one person at a time, but if we all did that?

Geez, I'm starting to sound like a revolutionary. Forgive me--I am feverish and should go back to bed.

/rant

[uwhusky84]

Starbucks' soul was sold long ago, Howard. The "experience" died a sad death about the time you went to automated espresso machines... then your tenure as Seattle Sonics owner clinched it. Karma is kicking your butt, and deservedly so.

[BOSTON STARBUCKS REBEL]

I decided to wait almost twenty-four hours to see what would happen after CNBC last night. Just like Starbucks builds the company one cup at a time. We need to remember that we also build Starbucks one partner at a time. We pour our passion into making every cup of coffee and so should be give our all to making sure we make passionate partners part of our company. Granted in reality, there are some persons who should never work for Starbucks. They do not share our commitment to being a superior company by offering a superior product. That superior product is the "Starbucks Experience." There are many people who do not know what this is exactly. The Starbucks Experience includes coffee but not only coffee. It also includes the barista behind the counter who creates the coffee and connects over coffee, the human connection. Each handcrafted drink is special and custom made for each person. Finally, it includes the "Third Place" atmosphere. A place between home and work. At the present time, many Starbucks are not like this and do not, DO NOT, create the "Third Place" and thus fail in their purpose, completely. This is an unacceptable situation resulting for many reasons. I implore you all to look at yourself each day before and after work and ask yourself, how have you made Starbucks live up to its mission statement? Sometimes customers say to me, "You just made my day so special. Thank you for this great cappuccino." I simply respond, "You're welcome. Thats what I'm here for." Get it? We are paid to create this positive atmosphere and help give people HOPE. Yes, this goes back to the Introduction in "Pour Your Heart Into It" by Howard Schultz. He spoke of Starbucks as a monument to his father's inspiration and how he wanted to know if his father would be proud of him? Realizing this Howard Schultz in his email, in between the lines, says NO, not today because the gains we have made has resulted in the loss of our soul as a Company. We were willing to offer our very souls up for more money. Many of us have resisted and will continue to resist these changes at every point wherever they are. There is no doubt that the WE SHALL OVERCOME!

BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
STARBUCKS REBEL ALLIANCE

[Nathan]

I agree with Starbuck's Soulsucked, but this is only indicative of the last decade. If you were a part of Starbucks (partner or customer) you know that it "was" much different.

At "that" time you could have an awesome cup of drip and a great shot.

We were Baristas that put every ounce of pride and caring into each and every beverage. We cared about the customers, the company and each other.

I think it was the customers that drove that out of the stores. No matter how amazing our drinks were, customers would just glare at us only interrupted by their watch checks ever 5 seconds.

They didn't even know a good drink from a crappy one; they only bought it for the green logo on the side of the cup.

As for Howard, he doesn't experience coffee on the level that inspired it all in the first place. This is what happens when good companies go public. Its all about the share holders.

Ok, enough ranting; I could go for days about this subject.

[GRL]

I don't know if the letter is real, and don't care, but it sure has generated a lot of free publicity for Starbucks -- very effective advertising masquerading in the form of "news."

Anyway, one suggestion I have would be to close the Starbucks in the Vons in La Crescenta (Glendale) California. Starbucks does not belong in a supermarket, let alone Vons, and having it there detracts from the brand big-time. Plus, that particular Starbucks store (a stand within a store, really) is seedy.

[david]

i am merely a "little shot in a big shot world" . . . a small business owner struggling for brand identity, heart felt passion about our products . . . i read these remarks . . . both from Starbucks Executives, customers, and employees . . . and it is obvious that at all stages of growth all businesses struggle . . . the essence of the struggles is the only thing that is truly consistent . . . i just wonder what peter drucker would say about Starbucks . . . i wonder what delightfully uncomfortable question he would ask putting the whole of these problems into perspective . . . and more importantly an executable and profitable strategy . . .

[BOSTON STARBUCKS REBEL]

The world is changed. I feel it in the water. I feel it in the earth. I smell it in the air. Much that once was is lost, for none now live who remember it. And some things that should not have been forgotten were lost. History became legend. Legend became myth.

[griffgirl]

Hey everyone,
I'm a partner up here in the Great Pacific Northwest--I was hired ten years ago. I worked for six, took four off to start my family, and have been back about a month. I saw some changes happening when I left that were puzzling and troubling to me, and now that I'm back I'm shocked!! So many things have changed that in some ways it doesn't seem like my beloved sbux anymore. I still am a champion of the company, and I really love what I do, but it is very diluted compared to what it used to be. I used to be able to name every person in line, and knew their drinks. Now all anyone cares about is if I sold a cinnamon dolce, or if we got 50 or more people through the drive-thru in 30 minutes. Who the hell cares what anyone's name is, did they buy a pastry?? It's really sad. I've been feeling all this for a long time, but had no idea this was here for me to VENT! So, I completely agree with the email, but it sounds like you guys don't think it's real...hasn't it been authenticated?

[SBUXOBSERVER]

Reading this brings to mind an analogy with another company: JetBlue.

JetBlue was (and, in many ways, still is) a darling becauise its overall service experience has been unique, compared to most of its competition.

But there were and are noticeable problems, and JetBlue's leader (Neeleman) has candidly acknowledged that they've tried to grow too quickly, resulting in some recent bumps along the way. So they made a very conscious decision to (a) SLOW DOWN their expansion, and (b) focus on fixing the existing problems and getting their service back to the standard everyone has identified as uniquely JetBlue. And then return to big-time expansion.

Sound familiar? Starbucks has focused on such rapid growth that all the problems we've described here are both precictable and fixable.

To oversimplify, four things need to happen:

1. Accept that profits aren't everything. If today's growing profits result in tomorrow's growing brand dilution, guess what -- profits will begin to dilute, too.

2. Slow down (or temporarily stop) all the expansion. Reallocate all the resources that were devoted to expansion, to "correction."

3. Go back and do the training and skills-building needed to get the current workforce back to where they should have been all along. Build employees' knowledge and passion, and improve managers' skills in how they run their stores and lead their people.

4. Go to where the rubber meets the roads -- the stores themselves -- and TALK TO the customers. And try to find those people who USED TO BE customers but have left for (greener pastures?). What "works"? What no longer works? What do THEY (the paying customers) think has changed, for better and worse... and what will it take for Starbucks to once again be THE EXPERIENCE?

Simple? No. Doable? Absolutely!

Cheers...

[HS]

Hey John Moore - you were SO wrong.
Maybe it is time to stop arm-chairing Starbucks. You haven't worked there in years, and you just try to make money off of working in the field. You never worked on the brand.

[Tattoo'd Barista]

I'm a fairly new barista and work in a northeastern U.S. Sbux that has retained its neighborhood feeling. We're in a shopping center but it's the partners and the regulars who make it feel homey. I really enjoy getting to know everyone and their specific drinks, suggesting new ones, even making mini samples at a slow time, etc. I'm passionate about coffee and the third-place experience--as are most of my fellow partners. It's truly contagious.

I do appreciate the sightline issue--and frankly, it would be better than having a customer leaning way over the bar to see the drink being made.

P.S. I did know the answers to the 3 questions posted earlier. :-) But then, I have some great mentors who are indeed passionate about coffee. I've redone shots when I feel they've sat too long (CM drinks in particular)--and explained to the customer why I did so. They are appreciative.

[bucksveteran]

Thank You Howard Schultz!!! I have been with starbucks for 12 years now and I have to say...I have seen the decline of Starbucks. Most of the new partners have no knowledge of coffee. they have no passion for what Starbucks is all about. I almost threatened to quit when we switched to the Verissimo machine because I felt like we were moving towards a MacDonalds type of establishment. We lost the ART of making coffee. The new machines can't even give you that really beautiful foam that you get from steaming with a La Marzocca. It's hard to create that 3rd place when your store looks like a fast food establishment. It has no soul, no character, it looks exactly like the other store 2 blocks down the street. It is even harder when your DM gets on your case because your labor was 2% over or under!!!! I'd like to see someone who can get their Labor at 0% variance. where is that 3rd place. How can a customer feel welcomed when the barista is not given the time to make that connection because once their 3 minutes are up from the time they ordered to the time they get their drink labor says we don't need that barista on the floor anymore unless there is a customer immediately after.

I used to be able to spend time to talk to the customers. get to know them. Make them feel at home. I used to know all their names, their kids, their partners, their drinks.....I used to be their friend. Now they are just a familiar face I see everyday.

So thank you Howard for acknowledging our weakness...let's hope that middle management is listening.

[JP]

Thank You God (Howard Shultz)! I have, over the last 10 years, seen the ever so prevalent decline in Starbucks. It is a shame that society and people cant walk into a Starbucks anymore and relax, knowing that coffee may take a few minutes longer with a manual machine. Rather, we as a society would rather have crappy coffee, say nothing personal to the employees, in exchange for getting a pruduct in 3 minutes instead of 3-6. I hope and pray that Starbucks will take this memo to heart and reinstate certain aspects of the company and get rid of things like so much crappy retail! -JP

[javajockey]

I really hope it's real; if it is, I have this to say:
AMEN AMEN AMEN, Howard. I've been saying exactly the same thing for a long time. Most of the new partners I work with don't know how to make a drink, connect with customers or what the different coffees are about, and they don't care. The soul of SBUX is being sucked away by the business "plan" of the man from Walmart, and it stinks. What make us special and unique is getting kicked to the curb in the grab for big money and sales. I hope that Mr. Schultz can fix it, and fast, before we really do become the "Walmart of Coffee".

[it's real alright]

http://money.cnn.com/2007/02/23/news/companies/starbucks.reut/index.htm?postversion=2007022316

Starbucks chair: Brand getting watered down

Company founder Howard Schultz says automatic espresso machines, bagged coffee and 'cookie cutter' store designs have led to sterility at chain.

February 23 2007: 4:48 PM EST

LOS ANGELES (Reuters) -- Starbucks Chairman Howard Schultz warned executives in a memo last week that measures taken to fuel the company's rapid expansion have led to a "watering down" of its iconic brand.

Schultz, Starbucks' founder, wrote on Feb. 14 that automatic espresso machines, bagged coffee and "cookie cutter" store designs have led to a sterility at the chain that has invited competition from fast-food companies and others.

The memo, which was posted on the Web site http://www.starbucksgossip.com, was first reported by the Wall Street Journal on Friday. A Starbucks spokeswoman, Valerie O'Neil, confirmed the authenticity of the memo to Reuters.

As in two other threads where I posted today (new here), I'm a customer who was once really excited about the concept Starbucks seemed to have. I remember walking in and being hit with that fresh coffee smell. I remember when the frappucinos were really good (especially mocha).
As I wrote in the other thread, my last purchase there was a 'chai' (???) blended creme with chunks of ice the size of ring finger nails in it and a chemical aftertaste for which I gave up over 3 hard-earned dollars for a nothing taste and presentation experience. Not only that, after reading sites where Starbucks baristas talk about customers like something they wiped off their shoes, I've pretty much had it. If you don't enjoy the business, please find another way to earn a living. The public has always been difficult to work with but some people enjoy people and that's why a chain like In and Out is so successful. They hire based on personality, not 'coolness' or whatever Starbuck's requirements are. What REALLY irritates me, as said prior, is not even being able to FIND small independent coffeehouses in anything other than crappy locations because Starbucks has to tie up ever single decent location in every single city of any demographic they want. I'm sick of it, sick of their attitude and sick of their really amateurish, sloppy drinks. I hope the tide turns and landlords get sick of it too. It's not giving the public a choice.

[Seattle Burnt Bean]

It is REAL. Both my local papers covered the story. As for any one that beleives it to be a fake, and has a problem with what was said. Guess what you are PART of the problem. Get over it. We are not Wal-Mart. We are suppose to stand for great coffee, and service to match. But if our service matched the quality of espresso we sevrved currently, we would not even talk to customers.

[Karyl]

Have been in Hawaii for 2 weeks+ and just heard about this and now online reading about it....I used to be delighted to get into an area where there was a Starbuck's (nothing local, altho building a "plant" as I type). I would go out of my way to visit and experience a Starbuck's. NOW I do just the opposite...when I asked the concierge in Kauai where to find a really great espresso drink and she said Starbuck's I said no way, I want a really good experience...she sent me to a small place with a california roasters product...it was truly a personal experience....as a former, retired business owner....Starbuck's will need to improve or they will be going the way of KMart...

[DT]

I was just discussing today with my co-ASM (well the ASM now that I'm stepping down/leaving (up in the air on that), and we basically agreed that 0%
variance is the devil. 0% variance and the hyper-awareness of the need to be
accountable to the shareholders and the
market has killed "The Starbucks Experience" and "Legendary Service" to a large part.

When was the last time you were able to do a French Press and actively sample it? Or make samples and take them to neighboring businesses? When was the last time you were able to sit down in your apron and actually connect with a customer?

Wayyyyy too long.

[ashiftathighvolume]

DT,

I work at a store that does 40k plus a week. Now, you may think that's the jackpot in extra labor, but we never have more than four people on at a time, so bear that in mind. We manage to do 3 active samplings during each shift supervisors shift. Try getting a work ethic.

[DT]

ASHIFTATHIGHVOLUME

blow it out your sanctimonious ass. I'd work circles around your punk ass everyday of the week and twice on Sundays.

[DT]

ASHIFT

you don't know WTF you're talking about, so don't presume just because you think you're hot shit.

I was likely doing this job when you were in high school, possibly even middle school. So my work ethic isn't the issue bub.

[mike]

what does Mr. Schultz knows about actually working at a store? I am sure he knows about how to run the company than I do but what about actually working in a store he created?

I have been with the company for almost four years now. The way I see it Starbucks is almost becoming another fast food burger place. get the drink out as fast you can regardless the quality. cut the labor cost to zero. everything is about keeping the cost down. there is no time to connect with customers at all.

everyday partners are ask to do the impossible with little help from the management. ask for more floor coverage you'll get an answer back about labor coverage. asking about why the roasting planet order isn't sufficent to last you'll get an answer back keeping the cost down.

trying to make a suggestion on how to make the store more efficient and customer friendly you'll get an answer back that you are not a team player and that's how the big boss wanted and there isn't anything you can do about it. so get use to it in other words.

so, mr schultz please take the time to work in a store not just visting them. spend a month in a busy store and see what it is like to work in one instead spend all your time in the office doing whatever.

anyway, i can go on forever.

have a good day

[JavaJunkie]

In response to the person who said "Not only that, after reading sites where Starbucks baristas talk about customers like something they wiped off their shoes, I've pretty much had it. If you don't enjoy the business, please find another way to earn a living. "

While I understand if you don't enjoy the business get another job....at the same time many of us still enjoy our jobs, although it seems as if some customers push us to our limits. I don't think bad mouthing a customer is justified if they have done nothing wrong.

At the same time if you had to put up with verbal abuse that partners do where people get personal for no good reason I wonder how long would you last before you needed to rant over how poorly you have been treated. If a barista is extremely rude I can understand a customer being put off and upset; however, when a barista is being friendly and bending over backwards for them only to be told how stupid or whatever they are then yes why shouldn't they be able to rant.

We are not vending machines and we do have feelings. Just because we work in customer service, does not give anyone the right to try to degrade us as much as possible, or throw coffee at us.

Some customers and their behaviour does deserve to be ranted about, respect goes both ways. Why should baristas have to let customers treat them like something they wiped off their shoe and the customer be able expect them to smile through being called "stupid" or a "fat b***h" as one of my coworkers was called?

[BOSTON STARBUCKS REBEL]

Only 4 people on at a time. Wow, you're store manager must really suck because they obviously don't know how to use ALS correctly. Most stores who make that kind of money open and close with 4 partners at all times. There are at least 4 partners at all time on the floor.
There should be 1 register, 1 floater, 1 food manager and 1 bar partner. All of them deployed and working quickly.
During peak times there should be 7 partners on the floor possibly even 10 depending on the labor hours alotted,

BOSTON STARBUCKS REBEL
PRIMUS INTER PARES STARBUCKS REBEL ALLIANCE

[Kris Tuttle]

All they need to do is create multiple brands, a retro one for the coffeehouse feel, a business one for fast service, and so on. They can't be all things to all people in one giant brand. Everyone else does it. Coke, Pepsi, etc...

[Brit]

I’m a regular customer at Starbucks and I agree with DT, “The way I see it Starbucks is almost becoming another fast food burger place. get the drink out as fast you can regardless the quality. cut the labor cost to zero. everything is about keeping the cost down. there is no time to connect with customers at all.” Mr. Schultz believes Starbucks has lost its soul. Both are right.

When one walks into a Starbucks you line up along with a bunch of other total strangers and as soon as you get to the counter you can feel the pressure to give your order concisely and quickly. Where is the customer appreciation in all of this?

So, there are customers who are discourteous and abusive but you get them anywhere. It’s the ‘Soul’ bit I care about.

I’ve never seen a manager walk around Starbucks and actually talk to customers on a daily basis. If you want customers to return they have to like the experience, they want to feel it’s ‘their place’ which means building more of a community experience much like the English pub. Starbucks needs to become The Centre of the community. If each Starbucks got involved in a local community project and invited customers to participate instead of just staff wouldn’t that help? It’s a bit like English pubs getting their customers to play cricket or soccer and posting photos of the event on the walls.

Walk into any Starbucks and you’ll see a bunch of people sitting in small groups but no one talks to anyone outside their group. Give customers a chance to grab a quick coffee, latte et al, by all means, but why not have an exterior access point (a quick order counter) so this access point doesn’t interfere with those that want to relax inside the store and experience the pleasure of either being on their own and reading, or the opportunity to chat with others. Encouraging more customer participation has to come from the management.

[Diane]

I don't work at Starbucks and I no longer purchase coffee there. Starbucks is to coffee what McDonalds is to a hamburger.

They both suck.

I never had a chance to go to Starbucks when it was a small store and still cared about its customers. But here in Washington now, particularly in the Seattle suburbs, all Starbucks suck, period.

Oh and to the person who mentioned no blue walls, that is because blue makes you not want to eat. Red makes you want to eat the most.

woo.

[damon]

I worked at Starbucks '98,'99,'00. The reason I got out of there was for the simple fact that Bucks started bringing in those crappy automatic machines. I knew that that would be the end of the "Starbucks Experience" No passion, no love, just get people in and out was to me the goal. Fortunately though, I took all the good stuff Bucks had to offer and opened up my own shop in the Greenlake area. I just have to say thanks to Howard for ruining a good thing, because it opened all sorts of opportunities for me and the LOVE i have for the biz.

[SB girl]

While I agree that Starbucks has changed (I'm a Seattlelite who actually patronized the original Starbucks)in that they no longer roast their coffees on premises & have lost that "coffeehouse" appeal, I feel that many local Starbucks do a wonderful job of creating a coffeehouse culture based upon good customer service & consistancy of product. I do miss the shared tables, delicious aroma & less-hurried atmosphere of yesteryear, but I'd say the changes have evolved in good part due to the client-base. The Seattle coffee-culture is casual & friendly. It's a combination of people & place. It cannot be quantified or duplicated, but each Starbucks can make their unique contribution to a community by pulling together the best elements of their own people & place to make a Starbucks coffee experience something comforting & inviting.

[kunal]

Its so sad that starbucks has lost the stars from its name. Probably in a race to open as many stores as possible, they ended up hiring as many rude employees as well. Back in the days (dont even remember how long ago!!) Starbucks was worth the bucks, when the coffee was fresh, the people serving it were warm and nice. Now, they just slam the drink at your face, sometimes you have to ask them AGAIN to customize your drink, eventhough you did that while placing your order and then hear them growling and ranting about it.
And this is common for all the starbucks irrespective of the location. Something common after all!!
I remember when having a cup of coffee was so peaceful. Starbucks has changed that approach in a bid to win this corporate race. There are nicer coffee chains like Costa or perhaps even Juan Valdez, where the server listens and responds to your needs and is not in a rush to keep the score of customers attended high!!
Its a hightime that Starbucks realizes this before it even loses the bucks of its customers!!

[K]

iaw hellnototheno. *$ lines are already out the door. Go to a place where there's more than one coffee shop on a block and one is *$. The others never have the lines like the *$ does. And beyond the lines is the small mob of post-purchasers waiting ever patiently for their drinks.

It's arguable that there is absolutely no way *$ would be as successful as it is if it *didn't* streamline and cookie-cutterize. To some extent, store standards are good. When you are on the road, and you pop into the Oshkosh *$, it's because you want the same double shot extra foam light whip not-too-hot half breve mocha cappuccino you get in Poughkeepsie.

I think there is a place for cookie-cuttered Starbucks. What I don't think is that it should cause all the other, soul-intact, coffee shops to shut down.

Bottom line is if *$ had been focused on maintaining its soul, it would never have taken off like it has.

[Sarasota Starbucks Fan]

This seems like the right thread to ask for comments on the following idea:

"I am a longtime passionate Starbucks lover and I have a TERRIFIC idea for Starbucks.

The idea is to support local artists by having significant wall space available in nearly every Starbucks for the display of local artists’ work.

The reasons why this is a terrific idea are as follows:

1) It used to be new and exciting to go into a Starbucks. But then the stores started to all look a little bit the same. Supposedly sameness means everyday customers are comfortable no matter what store they go to. But this is really not true, not the Starbucks way, and even McDonalds has many locally themed restaurants (awful thought they are). The day Starbucks started to become less “special” was the day I saw the first bit of Starbucks corporate art (coffee photos) in a Starbucks. Local art will bring a “feel” and an “aliveness” back to each individual Starbucks and it will make people excited about going to visit different Starbucks in their area instead of just one.

2) Local artists, and their friends, who are people who frequent coffee shops and recommend coffee shops, will love it and obviously it is a great benefit to the artists who will display their works.

3) It is really great PR to have a Starbucks local artist program just as it is great to have Starbucks involvement in music (CDs and Hear Music) and films (Akeelah and the Bee).

4) The problems which may be created can be easily dealt with.
a) Offensive or controversial art: An artist would supply copies of the works (both digital and printed) and individual store managers could perform the first review for objectionable material. The material, if without problems, could then be forwarded to a regional manager for screening with store manager comments. Those proposed exhibits which pass regional manager review could then go to a full time art review director who would be directly responsible to upper management in the event of any problem. With 10,000 US stores, an art review manager and a very small staff could easily review dozens of proposed exhibits every day which would be enough for nearly every Starbucks in the country to have four different three month long exhibits every year (still an unlikely scenario for various reasons).
b) Difficulties in displaying art, liability for damaged art, liability for art injuring patrons: These concerns can all be addressed by detailed mounting guidelines supplied to any interested artist (on the web) which would specify the allowable dimensions, weight, materials, and hanging hardware so that the art would interface with standard mounts in the Starbucks stores and very little store staff time would be demanded. The artists would install the art under store supervision with safety checks during some low traffic period.

[eric]

I live in Paris where a few Starbucks recently opened. It's absolutely unconceivable to me to have coffee in a fastfood. And Starbucks looks too much like McDonalds'... Drinking coffee in paper cups is also absolutely shocking. In my view, there is a fundamental contradiction between globalized business and small shops that have to fit into their local environments.

[christine]

In regards to Howard's recent memo to Jim Donald and the senior staff, he also needs to start worrying about a different type of watering down of experience. As a recent former partner in Dorothy Kim's groups (one of the senior executives cc'd in his memo), there have been a mass exudus of experienced partners in the Supply Chain group and I am in other groups as well. Starbucks, led by there Directors (Directors are underneath VP's and over the Manager's) have launched and all out attack on there experienced partners to pressure them to leave. I myself had over 15 year of experience in Supply Chain and was near the top of pay range. My director created a hostile work environment for me that one day became unbearable and I recently left the company. After the experienced partner leave, they either wait the longest time to replace them or they replace you with someone right out of school to keep costs down. In addition to Howard's concern of watering down the experience, this watering down of experience will also bite him the the butt very soon!

[guaca]

i love this man.

i had no idea this was out until my district manager told me he would fwd. it to me today. believe what you want, but this is a very real letter that has been recognized by the company. it's in the news, as well.

[Jay]

Maybe starbucks should try to save the company by bringing back everything Howard mentioned and getting rid of those awful Target and other " Liscence Concept" stores!!!!! They arent real and they dont do any traning all they do is give starbucks a bad name!!!!!!!

[Veedz]

As a customer of over ten years and a partner for the better part of a year, Howard Schultz's memo and its massive response have led me to reach one major conclusion: there is no point in placing the blame.

Even if there were only one tiny Starbucks in the whole world, one with a La Marzocco, bins of beans, quirky decorations, and no Frappuccinos, things wouldn't be any different if it were populated by hurried, angry customers and baristas who cared only about making 7 bucks an hour. This company has treated me very well for many years, and it's done its best to evolve with a less passionate crowd. For that I'm quite proud.

Let's face it: the majority of customers aren't coming into Starbucks for a cappuccino and a conversation anymore. They don't want to connect. They don't want their name written on their cup. They don't even want coffee. They want a "LARGE Strawberry FRAPP," they want it through the window of their Ford Focus, and they want it damn fast. Then, when they see the tip jar, they'll forgo the change and drop in a Post-it Note. "I don't tip at Wendy's so why should I tip here? P.S. - Your drinks are too expensive." (Yes, this actually happened at my store just a few weeks ago. Reactions were mixed. Make up your own ending.)

Many of our partners are with us today solely because they recognise that they can get a job with excellent benefits extremely easily. And with no deep fryers, either. They get their checks, and customers get "whatever crap it is that they want." Meanwhile, their managers insist that drinks are handed off within three minutes, and that every partner sells at least ten pastries every hour. Next week's schedule depends on it. Do I agree with this situation? Of course not. Do I accept it? I don't have much of a choice.

We are part of an enormous international family of companies, stores, and partners. As members of this family, it's our responsibility to do the best we can with what we're given. When customers stop in, we can say hello, ask them what they want to drink today, and do what we can to make their visit memorable. If they want to connect, we can connect. If they don't, we can hand off their beverage, smile, and hope that the next visitor provides us with the respect we consistently provide.

So our shots aren't as great as they used to be. So our machines are too big. So we've got drive-thru windows. So massive plastic cups of pink stuff have overtaken little mugs of rich espresso and frothy steamed milk. These are sacrifices we've been forced into taking, but they're not reasons for us to forget what's most important. We can't forget what makes our company what it is: our legendary service.

We'll always be faced with less-than-wonderful customers and partners, and we'll certainly be faced with less-than-welcome changes; this is the way of the world. But let us not forget why we're here, and let us not forget all the things that make our jobs worthwhile.

Thank you,

Veedz
Barista, Store #9774

[Charles Edward Frith]

It's easy to be a proper brand. Don't put profit as the objective, put the experience. The money will follow. A brave memo from Mr. Schultz

[Matt Freeman]

The memo is real. Check the Store News section on the Portal.
Well said Veedz.
Matt
Store Manager, #5520

[guamiswami]

I am an sm and classroom facilitator...and I love my job! When I teach Starbucks Experience, the new baristas and RMTs know my passion and genuine concern for them. I explain that the most important thing we offer at Starbucks is an EXPERIENCE. Yes, a survey shows that McDonald's was the more popular choice...but taste is objective! Do they offer LEGENDARY SERVICE and the Third Place to ENRICH PEOPLE'S DAILY LIVES?
Let's focus on customer care...let's create enthusiastically satisfied customers...let's quit blaming and deal with ambiguity the Starbuckian way.
Howard shows Leadership Courage...let's get back to doing What We Do and Why We Do It!

[Joshwar]

This is real. They've posted a rather ambiguous post on the Starbucks Online: Retail Store Portal stating only that the "internal memo leak" is in fact real. I had to do a google search to find out what they were referencing because the actual memo was nowhere to be found on the intraweb.

I have only worked for Sbux for 4 1/2 months, but as a shift supervisor I have to agree with much of what the memo is saying. Our store is suffering financially because we must conform to idiotic desk jockeys who have never been past the espresso machine at the end of the hall in their life. I feel so fake and lame while I'm working ... forcing the newest promo drink down someone's unsuspecting throat, just to please the pencil pushers. Real regulars are the ones that truly love coffee as much as we do ... but all of the marketing and design fails to attract these people to our stores. Quality coffee does not equal a quality experience. We've got the quality coffee ... other places have the atmosphere and genuine people.