Schultz is expected to announce Starbucks' "turnaround agenda" on Wednesday. What do you predict it will be.

Will his plan include specific changes (free wi-fi, introduction of rewards cards, etc.)? Or will he just deliver vague promises, like "a better Starbucks experience"? (MSNBC.com)

Comments

[Bladerunner]

Free wi-fi, would be wonderful! And 25 cent discounts with your own cup! 50 cent refills ALL DAY, not just in store. I don't know about the 1$/free refill, but we throw away a lot of coffee. And people will often buy something else when they come in for their 2nd ,3rd cup of the day.

[Steffan]

How about a buffet-style "all you can eat" pastry case?

[Dan]

Hopefully, he didn't watch Idiocracy...or at least saw it as satire and not as a gameplan.

[B-Mo]

LOL Dan. I think that would be a health code violation.

I find free wi-fi doubtful, but I think it would be a great idea.

[JavaJoe]

A pledge to melt down the stench-providing egg/cheese/pig-fat ovens for scrap. I hope. I pray.

[BOSTON STARBUCKS REBEL]

I'll try a good retail analogy. Why do people buy clothes at Abercrombie and not at American Eagle or the Gap? They are basically the same clothes except that the clothes might say "Abercrombie and Fitch" or have a small moose. I prefer shopping at Abercrombie because it is a unique retail experience that Gap and American Eagle cannot replicate. I think Gap and American Eagle are in act more closely related to each other than Abercrombie. You might want to make Starbucks like Abercrombie, while Dunkin' Donuts and McDonalds are like the Gap and American Eagle.
I think that if say, customer traffic somewhat slowed and the ubiquity of Starbucks wasn't so much people may feel better about buying such an expensive cup of coffee. I can enjoy a hand-crafted espresso based beverage and YOU can't. Thats what Starbucks marketing message should be. Thats how Abercrombie basically works.
Basically, I believe Starbucks violated one of the basic rules of economics in capitalism: supply and demand. As the supply of Starbucks beverage increased, the price should've fallen. However, they didn't and remained steady.
In my opinion, the ubiquity and uniques of the Starbucks Experience are incongruent.

BOSTON STARBUCKS REBEL
PRIMUS INTER PARES
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[Sheik]

My money is on another vague promise.

I'm still waiting for Starbucks "Dinner" program. I can see it on signs now: "Enjoy all 3 meals at Starbucks today: Warm Breakfast sandwiches, Tasty lunch options delivered fresh daily, and now Hot dinner: Meatloaf with mashed potatoes and carrots warmed to toasty perfection"

[i say espresso!]

I would love free wi-fi but I doubt that will happen. i say get rid of the verismos and retrain all baristas to actually make GOOD drinks - and for crying out loud - learn how to foam milk!!!

Make Starbucks more like Abercrombie? You mean like putting brainless hotties behind the counter, obnoxiously loud "cool" music playing, the stench of WAY too much cologne in the air, and way WAY over priced merchandise? Not everyone loves that you know. To people that don’t shop there, its almost a punch line, a bad SNL skit almost.
I think that it is more for people who want to feel they are a part of something cool. The problem with that is, its only cool till something cooler comes along, and then it’s forgotten.

[MusicGal]

I'm betting it will be more vague promises, but I hope he'll do some definite changes. I don't actually mind the sandwiches (I think the probability of a dinner is low...), but maybe put actual coffee more in the spotlight.

Maybe they'll come out with Grande Meals with free surprise toys inside.

What's wrong with A&F? I mean, even if you DON'T like A&F, BSR still has an extremely valid point.

Some people, I'd bank on saying a lot of people, go to Starbucks because it has (somehow) retained it's "cool" factor. It's exclusive. Yeah, you can go to McDonalds for a cup of coffee, but you don't have the same experience. You walk out the door with a McDonalds cup and not a Starbuck cup.

Like he said, it's about the "I can go to Starbucks, I can afford a $4 cup of coffee and you can't/ won't."

It's exclusivity, and Starbucks has lost a little bit of that.

Call it classism, call it elitism, whatever. Starbucks is a little elitist, even today, even serving the masses more than ever.

The cool factor can only last so long. I think Starbucks is starting to loose its cool factor, and once it is no longer cool, well, no one wants to go there. Like a night club, it will be the hottest ticket in town, and 6 months later, they have to shut down, becuase something cooler opened up accross the street.

[seventysix [76]]

Alright. Here's my two cents.

1. Return to the core offerings of the company and highlight your strengths.
While some will disagree, for the most part Starbucks offers premium coffees from different regions of the world. The company needs to re-focus on these coffees and remind its customers (and share-holders) that we offer a premium brand of what? Coffee. Just coffee.

2. To do this, focus on barista training in order to drive sales, enhance partner attitude, and as a result recreate the "Starbucks Experience."
It starts with the partners. Make sure the partners are trained to their full capacities, who will in turn deliver Legendary Service to the customers, who will return to the brand; the prodigal son, if you will.

3. The Little Things
If you're going to introduce new beverages, make sure they are smart beverages. As your T-Mobile contract ends, consider an operative that offers free wifi. And last but certainly not least keep a positive attitude: make sure your partners know that you appreciate their hard work and assure them that there is hope for the future.

It all comes down to that.
Good product + good partners = happy customers. To all partners reading this, please know that I appreciate your work. From partner to partner, I know the work you do on a day to day basis and I am right there with you. Stay positive and only offer the BEST and most LEGENDARY service to your customers.

Let's bring those customers back home.

Best,
seventysix [76]
Partner

[Northern Barista]

I'll drink to that seventysix!

[i say espresso!]

agreed!!!!

[.]

I predict he announces that Starbucks is in the first chapter of a very long book and that we will keep a laser focus on the US business.

[Sheik]

Someone posted on this blog a long time ago about how Starbucks will have Happy Meal's. Maybe THAT is the announcement?

Tall Vanilla Bean Frappuccino
Top Pot Donut
Special Toy!

Seriously though, I truly CAN see Kids Size (8oz) Frappuccino's coming this summer. Someday!

[i say espresso!]

I heard that they have the 8oz size cold cup in places like Japan....maybe that's just a rumor....

anyone know?

[former_barista]

As a long time site reader, I have to say (reluctantly) that I agree with BSR for once. When I was a partner, not so long ago, it was the frappucino-loving rabble who brought much of the atmosphere down. I hate catering to the elite... but who here wouldn't argue that SBUX was a better experience when we could go in and get fine Arabian Mocha Java scooped freshly out of the drawers, and La Marzocco espresso was the draw, rather than treacly-sweet caffeine delivery-systems?

Here's what I suggest:

1. Get rid of the Flavor-lock bags. I went to Caribou for the first time a few days ago (God forbid!) and the quality of the coffee was drastically better than the 'BUX. They claim they serve all of their coffee within 21 days of roasting, and it shows. Even with Verisomos (or Verisimo wanna-be's, not sure) the espresso put SBUX's to mortal shame. The brewed coffee tasted fresh, and the store smelled good. All this with the much-vaunted "third-place" atmosphere that they have aped with much success.

2. Find local suppliers for your food. Period. There is no consistency from region to region anyways in regards to what is served, so just go the extra mile: support your local community, find the best suppliers, and supply fresh pastries that sell to your specific customers. Each region has different needs... cater to them, and for God's sake give them fresh food without preservatives. Yuck!

3. Clean your G*$%#@ stores! Man, filth turns people off and completely destroys the homey feel.

4. Can the bad SM's. C'mon you SBUX partners... you know there are one or two (or three or four) SM's in each district who absolutely suck at their jobs and bring the whole company down. They not only drive away the good baristas, they repel customers with their behavior and poor mgt decisions.

And finally...

5. Keep your employees. Turnover is killing this company. A good barista is a happy and tenured barista. They exist, and your customers have bonded with them (and vice-versa.) Pay them more money. Treat them with respect. Promote from within, and stop pulling in the the RMT's who become the afformentioned bad SM's. Prove that SBUX is as good a place to work as you pretend it is.

A good start, I say.

[sheila rumbold]

Please tell me the email I received that you turned down sending coffee to our troops because you do not support the war are not true. Did you really charge for water after the attacks on the trade center? I love your coffee but will not support a company that would do either of the above, and I am sure most people won't. Sincerely, sr

Sheila- both of those are rumors.

*We sent hundreds of thousands of pounds of coffee to the troops, both on a company level and from individual store efforts.

*I don't know the specifics about the water, but this is the same company that gave five million to Katrina relief.

[oliversash]

Former_barista,
don't points 4 and 5 kind of contradict each other?

[Lisa Olivieri]

As a long time partner and customer, I believe we will go back to what we do best.COFFEE!!!!!!
We will once again train our partners to be all-star Baristas,with knowledge of coffe,tea and what makes Starbucks the "third place".This means the Starbucks company will oncee again take care of their partners which in return take care of the customers that come into the store.

[.]

I predict Howard announces the company's plans to reduce headcount but avoid severance expenses by finding reasons to fire partners instead of having layoffs.

Oh, wait! No. That's the part he won't mention. He'll announce that Starbucks is all about partners and treating them with respect and dignity.

[Back Lab blah blah]

Create a 3-tier brand strategy with each brand having its own standalone stores.

* Keep Starbucks as your mainstream 'flagship' brand (Ralph Lauren)
* Roll out a line of 'fight them on their own terms' lower end stores to go up against McD & Dunkin directly while NOT dragging the flagship line down any further. Introduce them in areas that don't get as much exposure to the coffee market; ethnic enclaves, lower income blue collar places. Make it a McD + 1 or a Dunk + 1. Keep the prices lower, the drinks a combination of trendy and traditional, the places bright and clean - tie them into the local community more than your standard 'we donated to your community center last month' ... host events etc. These will be great feeders: the portions of the demographic that 'move up' will eventually filter into the flagship line (CHAPS)
* Roll out a line of high end, artisan, throw-back, higher priced, luxuriously appointed, fire place / curtains / unique local artist offerings / homemade pastries / manual machines / THE BEST OF THE BEST STARBUCKS PERSONNEL. Don't overspread these. Focus on upper demographic suburbs and wealthy urban areas. Set a mandated maximum density of stores per 'area'; open 50 to begin with, but then limit your expansion to 1-2 per month max. These are your halo, brand defining, opinion-leader draws. (Purple Label)

Stop trying to cram everything into a single store line. It isn't going to work. It's time to spin off, even if it's internal only. The stores can still all be 'starbucks' / use starbucks logos and words etc. - but they'll be shades of "Starbucks" even as they generate their own subloyalties.

[Back Lab blah blah]

(By 'all still be starbucks' I don't mean keep them all named Starbucks. Of course not. They'll need to develop different names / themes / branding, but it can be tied to the overall starbucks feel, and can still have reference to the mothership'

[Bladerunner]

I work at a Grande Store by the way. This last week we filled up the middle section of our main display wall with COFFEE. As orders from the Emerald City. Guess what? Its selling like crazy. And for 2 years we've been trying to get 2 different DM's to Ok the purchase of another coffee rack. Jeez sometimes saying I told you so, does feel good. I've also heard the prepackaged, preground coffee is gone. Now if we could do something about those nasty pooh-smelling breakfast sandwiches, with 100+ "ingredients"!

[KC]

What do you mean by 'Grande Store' and 'as orders from the Emerald City'?

[GlenFeliz Regular]

Snoopy is going after Bin Laden in the Sopwith Camel...

oh wait, wrong Schultz.

My Starbucks was packed with people today. I dont know what it would be if it had free WiFi....I dont know if that is good to have so many people lounging around for hours or not, my location has limited parking. I think you can have free WiFi, but you have to have a valid Starbucks card to use it. Meaning you would have to actively be a customer to use it.

The store manager told me that they were getting rid of the overpriced machines. I havent bought a machine at Starbucks in 20 years...and the first ones they sold were Krups and Braun while they were still made in Germany (the grinder still works)

Hopefully they will bring back the special Shareholder's card. I feel special using those.

And for those of you worried about McDonalds...their stocked tanked today with bad results. There is more where that came from. If there isnt a Finding Nemo 7 in the theatres they cant push their crap on the bratty kids in the drive thru lane.

"When I was a partner, not so long ago, it was the frappucino-loving rabble who brought much of the atmosphere down. I hate catering to the elite..."
The key would be to educate these frappucino customers into appreciators of coffee. This can happen, I saw it happen with many of my former stores regulars. It is possible. It has nothing to do with "elite", frappucino's are among the most expensive drinks that Starbucks sells.
However, actively trying to educate customers away from expensive fattening, sugar laden "fraps" and towards cheaper doppio espressos and cappucino's would likely be frowned upon by any store manager.

Not to mention the fact that endeavouring on a mass coffee education intiative would likely involves managers putting extra heads on the floor to sample, run coffee seminars, and answer questions about espresso and the like. Last I heard (and perhaps this has since changed), the program made to do just these things (Coffee Master) is all but dead.

[former_barista]

In Regards to OLIVERSASH:

No, they don't contradict each other. I say: Can the bad SM's. Meaning mostly RMT's from McDonalds and Best Buy and Pizza Hut who got recruited for corporate reasons, who didn't come to the company because they love coffee or love Starbucks. Keep those hourly, dependable employees who came to the company because they really believe in the Mission Statement. They will redirect those failing stores back to profitability.

[former_barista]

And to Anonymous...

The Coffee Master program isn't dead... just suffering from a lack of support from enthusiastic management.

From one Coffee Master to another, I hope...

[Burgh Barista]

It won't be part of the "agenda", but the wi-fi issue highlights what is really wrong with *$ today: failure to take simple steps in order to further the Third Place feel. I think that the $1 short coffee and free refill ideas are good steps being taken to remedy this problem, but still I would LOOOOOVVVEE to be able to simply say, "Yes!" when customers ask me if we have wi-fi, instead of explaining the vagaries of why you should really look into getting a T-Mobile account. I mean, even the McDonald's next to my store has free wi-fi!

So many great ideas which I will recap here with a couple of my own:
1) Free wi-fi (with valid Starbuck's Gift Card or Duetto Card!!!!)
2) Get rid of Turbo-Chef Ovens
3) 50 cent refills all day instead of free makes alot more sense
4) Bring back the hand-crafted espresso!!!! I don't mind the wait and I will pay more (i.e., Nordstrom vs. WalMart or Starbuck's vs. McDonald's). It's not the same thing!
5) Secret Shoppers to weed out the bad baristas/ SM's. There's a reason that the customers like certain people and it might have something to do with "free" or to put it another way, "theft". These are also the same ones that gossip about customers and give Starbuck's a bad name.
6) Review SeventySix and BackLabBlahBlah - good stuff.
7) Now that all that is out of the way, visit the Morristown blog for a cute joke.
We have faith Howard, do the right thing.

[Jacob]

i dunno, i am just gonna wait to hear what howie has to say

[nycmanager]

I don't know where a lot of you partners work but in a majority of the stores in NYC, free wi-fi would not be the way to go...most of the feedback on my customer voice has been a lack of seating and free wi-fi would simply take seats away from paying customers...free wi-fi doesn't guarantee more sales dollars...free wi-fi (if SBUX did offer it) would have to be only for PAYING CUSTOMERS and with the JSY policy, we would never go that route...

All you partners who are constantly screaming for free wi-fi- it ain't happening...

As for Howard's new agenda:
1. Training, training, training- hopefully a renewed emphasis and revamp of all training programs
2. Healthier breakfast sandwich options
3. Extended leadership conferences- even if their just regional- these may seem like a waste on the surface but each year I returned with a new sense of being part of something special
4. Stop bleeding money through stolen cds and allow us to put out display copies
5. A renewed emphasis on coffee knowledge for both partners and customers

That's all i can think of now but i'll b back!

[Melody]

kc,

(Comment 1-29 at 4:56 pm)

I'm sure that "Emerald City" is Seattle. I'd bet that "Grande Store" has to do with the volume the store does, but I'm not sure. I'm not a partner.

I think that we're still in the early stage and we'll get overwhelmingly large generalities with a few concrete ideas in there: I think the real concrete statements will have to do with "coffee" - liking bringing back the whole bean list of coffees on the menu, increasing the amount of coffee displays, and perhaps doing more coffee pairings in the store.

We'll see what happens.

amen to the $.25 discount for a personal cup... doesn't hurt Starbucks, helps the environment, and is more than reasonable with the drink price increases...

[Melody]

Isn't the personal cup discount ten cents? Where are you that it is 25 cents?

greenapronbook.com

[Theo]

MELODY/KC

a grande store is a different layout than a short/tall store
it has to do with space and merchandizing

[passingtimeindallas]

A "grande store" refers to how big the store's cafe is and how big their useable retail space is. Smaller stores are usually referred to as "short stores" and have less retail fixtures and carry fewer promotional retail items.

The personal cup discount is ten cents. The reference to a twenty-five cent discount was a just a suggestion. I personally agree that it would be a great idea. It would give more incentive for people to purchase our tumblers and to conserve paper products.

I think that all day refills are a good idea. Brewed coffee has the highest gross margin of anything that we sell, and we end up discarding more of it than anything else we have in the store. All day refills will also do away with any uncomfortable conversations we have to have with the occasional customer that brings in their four day old stained cup that is splitting down the sides. One a day, in store refills are hard to enforce and to me, seem to contradict the just say yes policy.

[Jewels]

Didn't they do away with one-a-day refills about a year ago? I'm certain I saw it in an ops bulletin. We've been honoring all-day 50 cent refills for quite some time now. (even if the cup is obviously four days old)

[erstwhile]

Free wifi is not likely to happen. All of the architecture in place at the SBUX stores is provided by T-Mobile, and if that contract is canned, it's all going to be gone. It'd be a huge investment to replace it all for something that nobody is sure would actually drive sales (and could potentially deter some, if the cafe is filled with people on their laptops all the time *not* buying beverages). It's also fairly insignificant to stores that have small cafes anyway. (Mine only has two tables and four easy chairs, no drive-thru, and we still do 22-25k a week).

The big "changes" are the focus going back on coffee, and less on the peripheral marketing. We're dropping down from 10-12 hard resets a year, to around 6 at max, and more likely just 4. Less mugs and knick-knacks, more focus on coffee. There will be "core" tumblers and mugs, with Starbucks branding on them that stick around for 6 months to a year. Ever thought how much money Starbucks is throwing out the window when they release 8 different mugs/tumblers every 8 weeks, and the customers KNOW that they're going to be marked down soon, so they just wait to buy them? It's already started with the Valentines stuff (a lot less than there was last year), and it's going to continue with Spring p1.

So yeah. The COFFEE and the CONNECTION. Green Apron behaviors. This is where we're going to be seeing a lot more emphasis. Make SBUX somewhere that people want to go because it makes their day better. In order for that to be highlighted by baristas, the message is going to change from the top down.

I do agree that the personal mug discount should be increased. How about 10% off your drink, instead of 10 cents? I haven't heard anything about it changing, though.

[Bladerunner]

Esrtwhile, I like your thinking about 10% discounts for your mug. We will sell more mugs. And a few years back, we gave people a free first drink when they bought there Starbucks personal cup too! It also increases the carbon footprint awareness. Earth Day in April used to be a big deal at Starbucks.

[BOSTON STARBUCKS REBEL]

Around this time last year, Uncle Howie, wrote the infamous memo about the commoditization of the Starbucks brand. It is important to recognize the best way to fight this is by generating an exclusivity around the brand. That means raising the prices yet again, to weed out those who cannot pay. The basic idea should be that only a certain type of person will be drinking from a white cup with the Siren adorning it.
Market differentiation in terms of Starbucks takes many different ways. In any culture, the language is what defines any social group from another. That is why we have tall, grande, and venti for our sizes. Starbucks want people to think of the brand when they hear those words. Its almost like secret passwords that allow acceptance into the culture of Starbucks. Its easier to know the outsiders from the insiders. This therefore generates exclusivity.
Also, the quality of Starbucks products must be maintained. In case all you baristas have forgotten about the 10 second rule, espresso shots are dead after TEN (10) seconds. Espresso shots are highly volatile and oxidate extremely quickly when exposed to atmospheric oxygen and as they lose their temperature. And yes, thank you Vicki Verona, you do need to be like her and NOT like her DM, and rinse the pitchers each time. Basically, make sure each drink are made to standard as defined by the Beverage Resource Manual. I know its like the BIBLE in the sense where everyone has one but never reads it.
Finally, connect with your customers. Build a rapport with each one of them. Your regular customers are your core customers who you should try to get to know them. They are the "brand evangelizers" because they will tell their friends about Starbucks and also bring them in. I suggest on building trust with each of your customers by exhibiting the Green Apron Behaviors.
If a store manager gave an ambiguous statement like, "We will increase our sales" most people would ask by how much and by when?
Howard Schultz should clearly state the S.M.A.R.T. goals over the next 6-12 months.

Specific
Measurable
Attainable
Realistic

Timely

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[Ex-InterstateBarista]

"Make Starbucks more like Abercrombie? You mean like putting brainless hotties behind the counter, obnoxiously loud "cool" music playing, the stench of WAY too much cologne in the air, and way WAY over priced merchandise?"

Wait, so how is that any different than where it is now?

--

Regarding the "agenda," free wi-fi makes sense. I don't know why we don't have it. I can go to any number of restaurant chains in my area or the mall and get free wifi while I'm eating lunch, you'd think something like Starbucks would offer it.

[Ex-InterstateBarista]

To I Say Espresso!:

"I heard that they have the 8oz size cold cup in places like Japan....maybe that's just a rumor....

anyone know?"

Going by the Starbucks.jp website (http://www.starbucks.co.jp/beverage/espresso.html), yes, they do. I think I had heard that it was originally Short, Tall, and Grande in Japan and only recently had Venti been introduced.

[Bananas :)]

i just heard the weirdest thing from a brand spanking new barista. That in nyc every time she orders a EM she gets a short latte, whats up with that ppl!! no milk in espresso macchiatos!

[CapLover]

There's a big different in taste when espresso shots expire. After 10 seconds.

Sell more coffee base drinks! Cappucinos, espresso shots, coffee misto, ect.