Consultant says he has a radical solution that will solve Starbucks' problems

Geoff Vuleta, the chief executive officer of Fahrenheit 212 consulting firm, pitches this idea for Starbucks: Open a chain of microstores devoted solely to making coffee. "No travel cups, no music, no machines, just amazing beans and a narrow range of the best-in-the-world coffee drinks," he envisions. PLUS: More ideas for getting Starbucks back on track. (Read the BusinessWeek.com story)

Comments

[Vicki Verona]

Psh, you heard that idea first on Starbucks Gossip people! How long have been talking about that here?

I'd honestly leave my $32k/store in a heart beat (no offense to my partners, I love them) and manage a slow paced "neighborhood" store that would have a "Pike's Place" feel to it. Rustic. Fresh. Simple.

Hand Scooped beans, limited pastry case, La Marzocco's...3 flavors of Frappuccino - Caramel, Mocha, and Coffee

[BOSTON STARBUCKS REBEL]

Vicki, I'd be right there with you, although of course in Boston. Here in the Boston area, I can think of maybe four good locations: 97 Charles, Brookline Village, Newton Center

[BOSTON STARBUCKS REBEL]

and maybe a new one somewhere in Cambridge.

[Boring Market]

I totally agree 'Back-to-Basics Microstores' should be the new direction for Starbucks. Rather then try to change Starbucks and its already estabished culture, Starbucks should create a whole new culture. Fill these microstores with Clovers, and Semi-Automatic machines. Create new Roasting techniques to showcase the beans. The rules have changed and instead of others copying the Starbucks Experience for success, it has seems that Starbucks has to copy indie coffee shops in order to recapture customers.

[ee]

I learned my stuff in an indie store with a La Marzocco. I went to Starbucks for a more consistant job, better pay, and better standards (Starbucks is supreme in standards compared to a lot of independents, no matter what you've read on here). But I'd be lying if I said I didn't miss it. Oh I miss knocking out the grouds and tamping sugar/tea leaves into the shot. Please, Uncle Howard, look into doing this!

Yeah, flushing 90% of your business down the toilette is pretty radical.

[drivethruhater]

absolutely!!! this is a grand idea. i think they should open a little kiosk store in the middle of boston common...like a little walk up window type of deal...super cute!! i would so go for that...

[dragonlady474]

A coffee shop just serving coffee...brilliant!
Actually, I really do think it's a good idea.

[ty jones AKA Five Year Partner]

Where is the sign-up sheet for these? Is it on the portal yet?

[Jenn]

I am still upset about the breakfast sandwich being done away with. I like this idea of separate stores just for coffee. They already have starbucks in grocery stores that just serve coffee...

Save the Starbucks Breakfast Sandwich

Jenn

[fuwalda]

This idea is stupid and unworkable. Why create stores that are designed to be less profitable? Especially since having a separate type of Starbucks that offers LESS that other types would just be confusing and annoying for customers.

[Varangy]

A couple simple suggestions they might want to look into:

1) Copy McDonald's lead and introduce products tailored to a country's culture. While all McDonalds share a common menu, there are few items that you can only get at, say, a Malaysian McD's or at a Hungarian McDs. Marzipan flavored drinks for example for the latter.

2) Introduce an 'ethnic' line of drinks. Why can I not get a sickly sweet yet so delicious Vietnamese cafe sua da at Starbucks? Why not a thick, thick, thick Turkish coffee or tea?

I dunno. But I do know that would be a bold move in product development as opposed to this skinny latte bullshit.

Any Starbucks execs out there -- those two are for free, the next couple will cost you.

[Super Shifter]

I know when I was in Athens, Greek (Turkish) coffee was on the menu there.

[Elese]

I've heard these ideas before, back when the intial "Schultz is unhappy" memo came out and I agreed with them then and even more now. I don't think having stores with fewer options is the way to go, I agree with Fuwalda on that, it would only confuse and upset some Starbuck's customers.

The best idea. I believe, would be to have stores that have specialties, at one kind of store you can get a fuller range of loose leaf teas, at another one more brewed coffee options, at another more whole beans, another a Clover, another a La Marzocco, another that sells more home brewing equipment, and on and on. This way each and every Starbucks wont be exactly the same, it will still be the Starbucks that regulars know and love but each store will also have something special to offer and it would also be a lot of fun for the baristas to expand their knowledge and be able to specialize in certain areas.

[Kittymoose]

I think it would be a good idea. Where do I sign up? Haha.

[Vicki Verona]

Who says it would be less profitable? Imagine how many people would be willing to go to a Starbucks that isnt plagued by ubiquity.

Here's a good idea:
rather than opening a dozen identical starbucks stores, have a single extremely specialized cafe experience where

-they'll serve cafe style foods, rolls, soups, paninis, and a selection of deserts and pastries
-introduce a wide variety of coffee and beverages from around the world (vietnamese coffee, authentic masala chai)
-waiters and baristas, and "please wait to be seated"

Patrons will have a choice between a quick drive-thru location for their morning coffee, or head to a more high-end starbucks for a relaxing luncheon.

10:23 here, didn't see ELESE's post. It seems we're on the same wavelength though :)

10:23 - I hope you're being sarcastic...

if not...panera much?

You can own a Starbucks in your own home just like the one you are talking about. It is called a coffee maker. The coffee may not be as good as the coffee that is ground and brewed fresh at every store, but at least you may not have to worry about waiting in a line.

[Northern Latte]

Do you know how many times a day we explain at our store we don't have sandwiches after customers order them at the DT or waltz in demanding to know where they are?.....we don't need more confusion. When a customer sees a Starbucks they assume they can get what they got at the last one the visit just like I can go to McDonalds and get a Big Mac (if I wanted to) at any location....in the past few years Starbucks has made it very confusing to customers with licensed stores, we proundly brew, can we use our gift card or not, which stores have warming, which stores have sandwiches, even frozen pastry stores have a different selection...I think that the idea is great but in the long run would only cause more confusion with the customer base.

[xsbuxdm]

I said for years before I left that a "retro" Starbucks would be cool...nothing but coffee (which is pretty much all it was in the early days)!!

While most of those stores didn't do nearly the volume of some of the current stores, many were extremely profitable!!! Less labor + cheaper cost of goods = more profit! It's a simple equation.

How about, instead of completely revolutionizing our brand (which we seem to like doing every 6-12 months) why don't we just focus on what we have to work with now? All of you are so focused on change, and yet COMPLAIN and bitch when anything is changed that you don't agree with!

Just work with what we have. Improve the attitudes in the store. Focus on the quality of our beverage. And focus on our customers (even those hard nuts to crack). It will cost less, be more profitable, and heck it'll be the easiest solution vs some listed above...

[Beantownsbuxbitch]

I would think replacing our current coffee brewing technique with Clovers would really set us apart from our competitors. A choice of coffees,and the quality of the finished product would be a huge hit. Bring back manual machines,handscooped coffee and market it all as "The Return of Romance." Sit back and watch our stocks soar again!!

[BOSTON STARBUCKS REBEL]

AG,
I take it you're not working today then.

[SbuxSM]

A year and a half ago my manager transfered from where we lived to NYC. While he was waiting for his new store to open up Sbux gave this crazy thing a shot. They opened up a shop for a short time (like a week i believe it was) it was in a warehouse (like everything in nyc) and they ONLY sold for here items. No paper anywhere. No to go. All comfy seating. He said it was amazing. It was also a hit. But didn't bring in the insane money we are all used to. America moves fast.

This is not a new idea for us by any means. Its already been tested....

[BOSTON STARBUCKS REBEL]

I remember hearing about a store on the North Shore that sort of did this. They didn't get any of the marketing kits last spring and summer. All they got to do was the Daily Offerings Board to promote the beverage for that season. Apparently, it worked out fine because baristas had to actually talk to customers about what was good and what they should try. Allowing partners, to connect with customers by sampling and describing coffee and beverages is a great thing to do. From what I heard, both Pam and Francesca were aghast that this was occurring and was promptly ended.

[Zipy]

bad idea. Most people now a days don't want JUST coffee *plain*.

Those that do, don't go to starbucks. Even if starbucks did this, it is still starbucks.

Maybe if they made a fake name and setup a fake indie shop, but then we'd just make less money - so why bother?

[Allie]

Honestly, I'm sick of hearing the millions of perspectives on why our stock is falling. Wake up. The entire economy is nearing recession and starbucks isn't special. Our stocks are falling just like everyone else's.

I don't see why so many people are against the idea because "customers would get confused"...I like the idea, and think confusion could be avoided by a simple slight name alteration. Instead of calling it "stabucks" it could easily be called something like "starbucks basic" for example.

I don't see why so many people are against the idea because "customers would get confused"...I like the idea, and think confusion could be avoided by a simple slight name alteration. Instead of calling it "stabucks" it could easily be called something like "starbucks basic" for example.

[pdxshifty]

Make it all transfers/black aprons, uniform is all black al the time, manual machines, premium price, and call it starbucks roasters cafe, or some such different name to imply premium product and service and to avoid confusion.

[Beantownsbuxbitch]

I will be in tomorrow BSR from 2-6.

[Phil Gershon]

Guys, it's not about closing down all the full service Starbucks and opening micro-stores as replacement. It's about doing both. Full service stores with the atmosphere that made the chain famous. And an additional set of micro-shops that sell a limited selection of the best coffee drinks anywhere. Great coffee without the music, the sandwices, and the set of ugly mugs for sale. Starbucks taught them to drink better coffee—now its time to teach Americans to drink real coffee.

[No Name]

I've gotta say that I like some of the ideas above but they do't really address the fact that, at least in my area, many of the core standards of the company are being scoffed at.

I can't help feeling that until stores get more time for proper training, and the higher ups start getting rid of partners ( at EVERY level) who do not buy into the Basics, AND Howard implements a way to actually practice that speed of service is NOT more important than quality ( like not allowing RDOs and DMs to nickel and dime SMs over 0% variance etc) doing all these other suggestions seem pointless...For me anyway, it all comes down to real commitment to training...

[kga]

Have you ever visited a Peet's? They take coffee very seriously -- a serious art. I'm a Starbucks stockholder, but whenever there's an option, I choose Peet's (sadly rare, as DC doesn't have Peet's stores). At home, I visit Starbucks an averge of five times a week.
Seriously -- if you can, take a field trip. What Peet's does is quite impressive.

[Pockets]

That's idiotic. I'm sure Starbucks will write that dude a fat check-- even though I mentioned it to my Asst. Store Manager 2 weeks ago (without ever having read about that incredible savior before). I was just a cog in the Starbucks wheel and left Starbucks this week. Actually, I was forced to leave. They wouldn't allow me to work for them AND for a job I took to work as a second job (since Starbucks cut my hours 50% without warning). I started working at a thriving neighborhood coffee shop - the best shop in Reno (as was voted) - and learned more in one day about the craft of being a Barista than I did in 6 months at Starbucks. I was a great employee, but Starbucks can keep their high school kids and disgruntled 50 year old women upset about working weekends. I won't get started on their stupid tip system.

[twist15]

Starbucks needs a change; everyone can agree on that. Instead of opening a new chain of stores (that would be incredibly expensive and while not confusing, may not do well with consumers. I'd still pick my regular Starbucks over a new, sleek, expensive "Starbucks Basic"), Starbucks should focus on improving the multitudes of stores it already owns, maybe even slightly cutting down in the oversaturated areas. What many people (not those in the morning rush) visit Starbucks for is an earthy, relaxing, "hip" experience with good drinks, service and atmosphere. Starbucks has taken a great environment and turned it into a cluttered, push-button cattle cart experience. Starbucks needs to go back to coffee roots. I think Starbucks should gently ease items like the fancier Frappuccinos off of its posted menu (they could still be easily made in the "secret menu"-you can get pretty much any mix of syrups you want as it is) and should instead focus on the coffee. That's what many people really want-good, fresh, delicious coffee. Instead of new flavors of Frappuccino each season, Starbucks could focus on a more independent drink, like maybe an international drink (someone previously suggested Turkish coffee) or bubble tea. The whole scene needs to be less MickeyD's, less cluttered and more urban personalized.
*steps away from soapbox*

[adam]

1. Pockets--it's all about how seriously you take your job. When I started @ starbucks I knew very little about the world of coffee/espresso, but I had a hunger to learn as much as possible about the subject because I enjoy my job and want to be good at it. That's how I was able to promote from barista to store manager in only 16 months at age 21. Some people have crappy SM's and whatnot, which I completely understand, but it's amazing how far you can go just by having a good attitude. Anyway, I'm pretty confident that I can pit my wits against any Indie store barista, I just don't think that has anything to do with Starbucks--it has to do with the individual wanting to take responsibility and learn.

2. Peet's isn't anything special. Just had to say that.

[baristabob]

Starbucks has a concept that gets back to the original feel of an indie shop- the brand is Torrefaccione Italia. When Sbux bought SBC, the T.I. brand came along with it. Seattle has sat on this brand for almost five years now, not knowing what to do with it (except fill higher end grocery shelves with 4 of the TI blends). It's a shame, this concept is the true Italian espresso concept that Howard pines for. BRING IT BACK!

[Charlie]

Hey Vicki Verona, if you're gonna name the best stores in Boston, you can't deny the appeal of Davis Sq. across the river in Somerville. The baristas are awesome and they have a FIREPLACE!

When I started with Starbucks in 1997, this smaller focus type store WAS what Starbucks was all about. You had 7 drinks to choose from - coffee of the day, hot tea, espresso, latte, mocha, cappuccino, misto - and could customize by having it iced, change to Decaf, use Nonfat or percent milk, or add one of six syrups. We were a small store in a busy outdoor pedestrian mall (room for 12 people to sit inside and 16 outside) and had 2 half-bays for merchandise (machines and a small selection of travel mugs). The most amazing thing was the amount of whole bean coffee we sold. If we weren't selling 150-200 pounds of coffee a week then there was something wrong. This was during the age of the "bean drawers" and we had a dedicated "bean register". We were extremely profitable. Then that summer we added frappuccinos and nothing was ever the same again.

Of course you do not want to alienate your clientele, everyone who wants a frappuccino should be able to get one, but don't for a minute believe that what you find in a Starbucks today has anything to do with what Starbucks was founded on. Keep 80% of the current stores the way they are, and when you retrofit the other 20% or add a new store to an area make them something truly special. Set it apart with a different name as someone mentioned earlier, Starbucks "Ristretto Cafe" maybe, people are smart, if the product is so amazingly different in tone and appearance they won't expect to find the same old thing you can get at a regular Starbucks. I promise you, there is whole group of people who would welcome a quiet place (no blenders allowed) that is not over-run with juveniles where they can have a handcrafted coffee beverage from a simple to understand menu or a fantastic pressed coffee (yes PRESSED) or a pot of tea that does not come from a tea bag. Make it European in flavor - pour everything into real mugs, expect that people will once again want to have their beverage "for here". I would gladly pay extra for that kind of place. And here is the interesting thing... many of those who would frequent such a place are people who either have given up on the Starbucks thing long ago, or they begrudgingly go into one now. You don't lose current customers and you gain or win back those who are really focused on enjoying the experience. There are restaurants of a certain caliber that I frequent where you can spend two or three hours at dinner, you linger over each course and enjoy it and the company completely - I know that risotto will take some time to prepare and I do not expect it in the same amount of time it takes to get a hamburger at In-and-Out. People are able to wait for good quality products in an atmosphere that matches the quality, and people who enjoy coffee and tea the way it should be enjoyed understand this. Besides, these are the people who already wait for you to brew a new batch of coffee for them every time because you let it expire and "forget" to rebrew anyway, right?

[JMW]

I don't really understand this idea -- why does Starbucks need micro-stores again? The idea sounds ridiculous.

Customers want whole products. They don't want to go into a store and say "oh crap, this is the MINI Starbucks, I can't order my drink here!"

Imagine -- if you will -- going to a "Deposits Only" bank. Seriously. That's a micro-Starbucks.

This post highlights, once again, why you should never hire management consultants to tell you how to run your business.

[bjs]

It's not common to have a Deposit only bank, but it is fairly common to have a "Withdrawal Only Bank." Most ATMs only allow withdrawals (the small minority also allow you to make deposits).

The one thing I'd worry about with open micro-stores which were more dedicated to coffee is that you would show how non-coffee-centric the rest of the stores are. It'd be as if Starbucks was saying, "Look we can do real coffee.... but it's a lot of work so we don't want to do it everywhere."