Starbucks CEO Howard Schultz's message to employees:
Dear Partners,
It has been almost six months since I returned as ceo. During this time, together, we have begun to transform the company by relentlessly focusing on our customers and the experiences they have in our stores. Espresso Excellence training, the successful launch and response to Pike Place Roast, Mystarbucksidea.com, the introduction of the state-of-the-art Mastrena espresso machine, the acquisition of Clover, our partnership with Conservation International, and the roll-out of the Starbucks rewards program are all examples of our commitment to our customer and elevating the Starbucks Experience.
This summer, beginning July 15, we will unveil healthy, good-for-you beverages, which are part of the Health and Wellness offerings at Starbucks. In addition, in Southern California, we will introduce a refreshing, indulgent cold iced beverage. Steeped in Italian heritage, it will be an exclusive product that our customers can only find at Starbucks. I can't tell you just how excited I am about our new innovations and programs and I believe you will be also.
For more than a year now, we have seen the adverse impact that a slower economy and dramatic decline in consumer confidence have had on our U.S. business. This has resulted in a drop in comparable store sales due to a reduction in customer traffic. The pressure on store unit economics has required us to take a serious look at our store portfolio. As a result, we must be more disciplined than ever in examining and evaluating our business.
After an extensive and rigorous review of our U.S. company-operated store portfolio, our executive and field leadership team, which included Operations, Store Development and Finance, has decided to close approximately 600 underperforming company-operated stores in the U.S. market, which includes our previously announced plans to close 100 stores.
Unfortunately, this hard, yet necessary decision will result in the elimination of many full-time and part-time retail positions. The majority of the store closures are anticipated to occur during the balance of FY08 and the first half of FY09. The exact timing of each store closure is dependent on third-party agreements and are, therefore, subject to change. As always, we will treat our partners with respect and dignity, and in the spirit of transparency, we commit that all partners in our 7,200 plus company-operated stores will be informed as to their store's status (remaining open or closing) by mid-July. We expect to place many of our affected partners in available positions at nearby Starbucks stores. Those partners, who are not offered a comparable position within a reasonable distance from their current store location, will be offered a severance payment to aid their transition. These payments will be available to all full-time and part-time partners, and will be based on job level and current pay rate. Additionally, there is an ongoing review of our non-store organization, including both field and Starbucks Support Center resources. Changes related to this review will be communicated to partners and implemented no later than August 1.
Throughout the history of our company, we have always aspired to put our people first. This makes our decision to close stores more difficult, as it disrupts the lives of our partners, who have worked so hard to deliver superior service to our customers. At the same time, we recognize that we must make decisions that will strengthen the U.S. store portfolio and enable us to enter fiscal 2009 focused on enhancing operating efficiency, improving customer satisfaction and ensuring long-term shareholder value for our partners and customers.
By far, this is the most angst-ridden decision we have made in my more than 25 years with Starbucks, but we realize that part of transforming a company is our ability to look forward, while pursuing innovation and reflecting, in many cases, with 20/20 hindsight, on the decisions that we made in the past, both good and bad. However, I strongly believe that our best days are ahead of us.
We believe that building an enduring great company requires the thoughtfulness and, at times, the courage to make some very tough, difficult decisions. This is one of those times. We have built one of the most recognized and respected brands in the world … the essence of which has grown out of the passion and character and integrity that is inherent in our partners. And I promise you that I understand the magnitude of closing so many stores and the emotional impact it will have on our partners. I assure you that we have taken all of this into consideration in doing what is necessary to strengthen our company for today and the future.
As always, thank you for all you have done and continue to do for our company.
Onward,
Howard
We will find out by July 15th which stores will be closed starting August 1 through March 2009. How sad but necessary. At least we will make an effort to place partners in neighboring stores or offer severance. At least 50 stores in the Southeast will start hearing by tomorrow (that is GA/NC/SC)!!
Posted by: GuamiSwami | July 01, 2008 at 05:49 PM
so now we find that our partnership was on a one way street.........prayers to all the honorable partners whose lives will face serious disruption, peace be with each of you.
Posted by: motorhead | July 01, 2008 at 05:54 PM
I thought I remembered hearing somewhere that Starbucks never closes a store. Guess I was wrong. Still, it always sucks to have a job taken out from under you, I know how hard it is to find a job right now.
Posted by: Il_Duce | July 01, 2008 at 05:57 PM
What does dramatic decline in consumer confidence mean? Is Howard blaming the customers?
Posted by: sbuxsm | July 01, 2008 at 06:10 PM
I feel profoundly sad to read Howard's letter. It must've been painful in every way possible. Despite what others here might think, I believe those executives at SSC that participated in this tumultuous decision must at some level feel pain and sadness.
Posted by: Melody | July 01, 2008 at 07:20 PM
My overall message was that tough decisions make businesses successful...
Posted by: virginalbarista | July 01, 2008 at 07:20 PM
sbuxsm: What does dramatic decline in consumer confidence mean? Is Howard blaming the customers?
From the way he stated it I read it that he's blaming the economy, and the consumer's lack of confidence in the economy.
Posted by: StLouieDrip | July 01, 2008 at 07:29 PM
As I'm sitting at home I received a call from my shift supervisor reading the email over the phone... Tears ran down my face... but she never would of known. Because we are a store that could possibly face closing. I know that this is a business decision, and I respect the company I work for. Things happen. Choices are made. My store was the first store out of 7 in the town I live in. With about 3 Licensed stores. I am very sad. But when I walk in the doors tommorow I will face the music. Because I may just get that call. But I will stand by the company I trust because I know it was the right thing to do.
**My prayers go out to all the partners and families that will be affected by this in the comming months.
Posted by: TripleShotOfSmiles | July 01, 2008 at 07:50 PM
"As always, we will treat our partners with respect and dignity"
ahem*cough*bullsh*t...
Posted by: jabanga | July 01, 2008 at 07:55 PM
My store makes over 20000 a week, according to the district sheet my manager hangs up every week, and beat every other store in your district. We are the only Sbux within 25+ miles. We'll be okay, right?
Posted by: rth | July 01, 2008 at 08:21 PM
sorry, I meant beat every other store in *my* district.
Posted by: RTH | July 01, 2008 at 08:21 PM
To highlight PPR and mystarbucksidea.com in the same breath as elimination of 12,000 jobs? What an out of control ego...
Posted by: Has Been | July 01, 2008 at 08:25 PM
Has Been,
I have feeling, that no matter how carefully Howard attempted to craft that message, it would be met by criticism. You can't talk about losing 600 stores without someone finding fault in how you're saying it.
If it had been a short and sweet, "I'm sorry" someone would have thought he was being flippant.
Melody
Posted by: DowntownSeattleMelody | July 01, 2008 at 08:41 PM
What does Howard care? He has a small fortune, and funny enough, still a job.
To him, he wouldn't care if every other "partner" (read: employee) was fired tomorrow, raising the price of the stock that he holds (and probably has options to as well)... this is profit for him.
Heh.
Posted by: interesting | July 01, 2008 at 08:46 PM
What I don't get is why people say "Howard doesn't care".
If a store isn't doing well, do you honestly think it should stay open? People lose jobs all the time. I know of stores that open at SIX? SEVEN? close at 9:30?! Ten?! On top of that never busy.
Posted by: reg | July 01, 2008 at 08:50 PM
I'm sure this is extremely hard for Howard. Starbucks is "his baby" and he's is proud of it just as he should be. It's not easy to let one person go much less have to close 600 stores.
Posted by: lattegal | July 01, 2008 at 08:57 PM
A Declining Economy + A Faltering Brand and Share Price = An Unstable Company.
These changes were inevitable. There are simply too many stores and they've begun to cannibalize each other; especially in light of the declining U.S. economy. The stores - especially the newer suburban ones - simply do not have the same number of customers as they used to. And let's face it, coming in and dropping anywhere from $3-$6 bucks for a coffee drink doesn't make sense when you're not sure if you're going to have a job at the end of the week; and that's how a lot of people feel right now.
Starbucks used to think of themselves as 'recession proof' because the cost of their products is relatively low and the experience is generally positive. We're past the recession part and the economy is still tanking. At a time when it's costing people $60+ to fill their gas tank; something has to give. Looks like a lot of people are choosing to give up their Starbucks fix.
Posted by: javajohn | July 01, 2008 at 09:00 PM
Yeah... It's so funny how Starbucks as a company (especially during Review time) does not believe in "any kind of excuse" for poor behavior. It seems that Howard is listing off all the things WE have done (ie. "things HE himself has done") and how they didn't work. Excuses, excuses!!! Why doesn't he go without pay for the rest of his time at Starbucks?? Surely that would leave a few more stores open. WTF!!! I am so sick of this company. After six long years working for Starbucks, I may just consider leaving based on this crap... Why all the finger pointing and excuses??? Howard, you have failed us!!!!!
Posted by: Brian | July 01, 2008 at 09:02 PM
Look, there will always be cynics, and there will always be optimists, and it's clear that based on your own unique perspective, how you feel about Howard will reflect that. But one thing I know for sure, is that if a partner starts personally attacking another partner, making claims that they understand their intent, then it is a slippery slope. One partner starts to not care, causes 2 others, causes 4 others, causes 8, and then soon enough, we have more cynics than optimists.
Howard is the eternal optimist, and when we were smaller (heck before I got here) it was probably easier to control hiring to ensure we got the right talent onboard. And yes, I mean people who have a positive outlook on life, in general, who believe in personal responsibility first, rather than pointing the finger. I've seen more people than ever recently post that this is "just a job" and I think this exemplifies more negative impact on our company, than consumer confidence.
There is a lot of recent hype around the "law of attraction", and while I think some take it a little too far, I do believe that what you say out loud, the universe will give back to you. To extend this argument- if tens or hundreds of partners are personally attacking Howard (rather than debating the merits of programs, policy, etc), then maybe Howard will just start using different criteria for his decision making. If he doesn't have a partner base that believes in him (or he perceives this to be the case) then maybe he WILL start making decisions based on bottom line. And I'd hate for that to be the case.
Posted by: P.R.I.D.E. | July 01, 2008 at 09:05 PM
Brian, closing stores is probably necessary to get away from brand dilution, as well as, of course, eliminating unprofitable stores.
lattegal, is 110% right -- This is his baby. It has to hurt. Really hurt. I don't know Howard Schultz (obviously), but I believe this is painful to him.
If he gave his salary for a while, it wouldn't suddenly restore the brand. He has to make it a "premium" experience, and give it some exclusivity again.
It hurts, but maybe it will pay off in the long run. But this is not about his salary or his ego.
Posted by: SeattleMelody | July 01, 2008 at 09:06 PM
I have personally written several letters to the Powers That Be how they were losing the "soul" of this company. They chose to ignore me.
pfft.
Posted by: GoneBabyGone | July 01, 2008 at 09:10 PM
I'm so sick of Howie's salutation: "Onward". More like "Sownward", with today's news.
Posted by: Moe the Chimp | July 01, 2008 at 09:32 PM
Oops, I meant "Downward".
Posted by: Moe the Chimp | July 01, 2008 at 09:33 PM
A banana, some ice, some protein powder, a little of this, a little of that and presto! It's a hit in Italy. Now all we need are a couple hundred million more Italians here and we'll be back in the black!
Posted by: blendedbanana | July 01, 2008 at 09:39 PM
CANCEL LEADERSHIP...the money can be much better used right now. It sends the wrong message to our partners and investors.
Posted by: Concerned SM | July 01, 2008 at 10:14 PM
"I feel profoundly sad to read Howard's letter. It must've been painful in every way possible. Despite what others here might think, I believe those executives at SSC that participated in this tumultuous decision must at some level feel pain and sadness."
Melody... I'd like to know where you buy your rose colored glasses. The selfish bastard executives wouldn't sell their vintage yellow Mercedes to save a partner's life. I'd bet good money on the fact that they enjoyed a nice bottle of wine while chatting about the criteria for cutting stores loose. It is Howard's job to talk like he does... he went to college to learn how to do that. Until he works for free for the next year and takes no bonus, I'll have a hard time feeling sorry for him... He's got a pretty good life, while the 100,000+ folks that take money from customers are challenged to make ends meet... Being flexible doesn't mean having to bend over. Starbucks is no longer the special place it once was and the 7th Guiding Principle of "Get whilst the gettin's good" applies...
Posted by: Pat Nerr | July 01, 2008 at 10:17 PM
'Profoundly sad'..... funny.
Notice how the clowns who sold you the PPR boondoggle still have jobs.
Yeah, SSC feels your pain. Right.
Posted by: truth | July 01, 2008 at 11:00 PM
I agree with cancelling leadership, think of the jobs that can be saved!!!
Unless Howard plans on having everyone work on houses and uses the trip as a tax write off for charity work. Howard you once said you lived by the message of the poem "Man in the Mirror". My question to you, Howard is do feel good about what you see in the mirror? Where were you when the company was heading down the wrong path? Well, at least Howard won't have to worry about finding a job to supoort his family!
Posted by: SM | July 01, 2008 at 11:09 PM
I know there's some truth in what Truth writes (I've said that often) but I don't see the SSC as a big heartless place. Of course it is all hands on deck now: Everyone is needed to give 110% if you're going to transform a company. No one said that a transformation would happen without pain and suffering some misery. Difficult decisions may ultimately bring great success.
People here love to talk about Howard's ego & wealth. No, he doesn't seem like a humble and approachable guy, and yes, he sounds a bit like a politician the times that I've heard him speak in person, but that doesn't mean that his soul has been carved out and given away to the almighty dollar. You can't be so extremely and emotionally invested in a business and NOT feel pain about the decision to let people go.
Is it the right decision? I say "yes" (Just say "yes") but I will feel better about what's happening when licensed stores start to disappear as well.
I know I'm a little too rosy at times - it's just who I am.
Posted by: Melody | July 01, 2008 at 11:23 PM
Make no mistake, Howard is trying to salvage his own personal rep. Ask him this - while eliminating 12,000+ jobs, are you still spending millions on a new building in downtown Seattle? Another roasting plant in Carolina? At least two corporate jets? An IT services contract in Europe that nobody in Europe wanted? Apple iTunes integration in the stores that nobody uses? Burning $100k per week ok "business process" consultants? Believe me, I could go on, and on, and on...
Posted by: Has Been | July 01, 2008 at 11:33 PM
im sure it hurts to have to tank anything at this point. all that howie has done since his return is try to re-invent the same old starbuck's. i don't see how introducing a string of new recipes is better than keeping partners and customers working and happy. he should have been focusing on partner assets. as i heard it we were supposed to be going "back to basics" and reducing quantity of choices, not quantity of stores. lets watch the quality plummet as the partners that get to stay realize that the company could drop them at anytime.
Posted by: pariah | July 01, 2008 at 11:51 PM
Good news, stocks went up 4.32% after trading hours. The sad news is that Wall Street is tickled to death about our decision to put the sword to 600 stores. It helps the bottom line, investors are happy, .15 cents a share last quarter bent Howard over the table and investors are calling the shots.
This basic economic fact is not letting our beloved leader off the hook. He talks of his small, quaint, beloved Starbucks of old and his wonderful, frolicing trips to Italy and his fascination with the mythology of a cup of coffee and the third place. He sure said yes to building all these stores and seemed to enjoy his money and success enough where he stepped away from the company only to be found when CNBC called to talk about his genius. I think he is the one who said yes to all these things he is trying to get rid of now, flovor locked bags, cd spinners, breakfast sandwiches, etc.
I am not really sure if old Howard really knows what the customer even wants. What is the lack of customer confidence about...it is about us. There is nothing intimate about Starbucks, nothing legendary, nothing that is a third place except a empty seat because everyone goes through the drive thru.
Our shitfs and baristas are expected to work as hard or harder than any retail job I have ever encountered at a pace and stress level that is extraordinary. We pay them $7.35 or 8 or $8.50 an hour. They cannot afford to live alone on one job, to live a sustainable, enriching life. They have to have two jobs, or live with roomates. What has the last year brought our partners Howard? Their living costs have nearly doubled and in the midst of this phenomenal transformation of excellence and perfection they have been asked to cover your ass with no extra benefits, or pay, or initiative but to bring you company back. What percentage of your baristas and shifts were with the company even three years ago? What percentage will be there three years from now? Why is that Howard?
Respect and dignity are more than words, they are actions. Green apron cards do not translate to improved economic conditions for our people. Customer confidence is down because you lost your partners. When a coach loses his team, a coach is fired. Our turnover rate proves you cannot fire the team, Howard.
Those 600 stores closing and 12,000 jobs mean one unforttunate thing for the rest of us. We will have more customers, who are confused and angry because their Starbucks was closed, longer lines, more stress, more attrition and the same old leadership that makes decisions based and stock reports and shareholder meetings. Onward.
Posted by: the tree | July 02, 2008 at 12:01 AM
Melody -
You wrote "No one said that a transformation would happen without pain and suffering some misery" and this is very true. It's unfortunate that there will be pain & misery, but in the long run it's what needs to be done.
I guarantee that we all would do whatever we needed to to save our home, our business, our family, etc. As I see it this is Howard's business, he created it, developed it, and grew it. Then it seems he handed it over to some who couldn't do the same and now he has to correct those problems. It's very unfortunate, but in business or with anything else you do what you have to.
I really do wish everyone the best!
Posted by: lattegal | July 02, 2008 at 12:07 AM
TripleShotOfSmiles, it's "would've", not "would of".
Posted by: EvilJim | July 02, 2008 at 12:14 AM
P.R.I.D.E. ... Yeah, and who decided to build all those stores?? Howard and Co. So he should be held accountable for his poor judgment!! (not other partners who work their butts off in retail stores.)
Posted by: Brian | July 02, 2008 at 12:38 AM
As a two year ASM who would have otherwise been quickly promoted, I was given the option a month ago to "step down" to a Shift Supervisor position in another district or face possibly being fired from the company if I wasn't at "currently exceeding" expectations. The Store manager at my store (newly hired) and my new DM made me feel as if my 2 little mistakes in one year's time were INCREDIBLE and INSURMOUNTABLE, but I remember 6 years ago when my first store manager was pill popping in the backroom and still kept her job, despite many pleas of mine to the DM. All I did was talk a little too loudly to a Barista who was insulting me on the floor. That's IT. Now I'm down thousands of dollars (demoted to a shift) and Starbucks got to scrape some savings off my a$$ and pay another CEO more money than he's worth because of his... "few mistakes" he's made these past 6 months. Makes me REAL ANGRY that I had to be forced to step down, yet Howard is still raking it in, dragging partners across the hot coals, saying that he doesn't mind they're out of work and I bet he won't even bother watching them walk away. Poor human relations if you ask me... Starbucks is DOOMED. Thanks, howard. I gave 6 years of my life to you, for what....?
Posted by: Brian | July 02, 2008 at 12:56 AM
Maybe I'm the eternal optimist here, but I think it we would have had hired the right people for those stores, this wouldn't be an issue. I probably spend twice as much time on hiring as any store in my district, and believe me, it shows. I spend less than half of the time coaching low performers and writing corrective action plans. It's where you choose to spend your time.
All buisness indicators said "GO" to continue to open new stores when we were positively comping. I would argue the brand became diluted NOT because of the sheer quantity of stores, but because IN our growth, we could not maintain a partner base who was on board with delivering an enthusiastically satisfying experience.
If you can tell me that 100% of the time, when you visit your store or the store down the way, or the store in another state on vacation, and you left feeling really proud and enthusiatic about your experience, then yes, I would blame Howard.
But until then, let's pull the mirror out on ourselves, folks. That's the only way we'll create real change.
Either you'll attack me here, meaning you refuse to take the mirror out, and you would rather blame an external entity, or you'll agree.
Posted by: P.R.I.D.E. | July 02, 2008 at 12:58 AM
P.R.I.D.E. I think that if you were put in my shoes you would think totally different about this whole situation. i'm guessing that you had the "best training experience ever!" and the "best manager to work with" that you've ever had. Good for you! I however, didn't. I was given a store to help manage that had a crackpot manager who didn't care about sales or comps and you know where it got me? Demoted two years later. And they told me they didn't want to hear any excuses for poor performance, this came down from the top. WHO IS GOING TO HOLD HOWARD ACCOUNTABLE??? Screw your mirror philosophy. It's time the big whigs took it out and stopped coming up with excuses and stop trying to make quick cash by selling partners dreams down the river.
You must really have no heart or integrity, PRIDE...
B
Posted by: Brian | July 02, 2008 at 01:05 AM
your father would be proud, howard
Posted by: wholahay | July 02, 2008 at 01:21 AM
Man, there are a lot of hate-filled or emotionally charged people writing! I understand your concerns because I suspect my store will close. Starbucks owns the property of a store not too far away and the rents at my location are high.
But folks, Starbucks is a corporation that was created to make money; not share the coffee experience. If that was the case, Howard would be standing on street corners passing out mermaid cups. Look at the statistics. Starbucks needs to close stores! Not to make you mad. Or sad. If the corporation is going to succeed, it needs to show big profits.
Oh, and please quit griping about how much Howard makes. He probably works harder in a week, than you work in a month.
Posted by: spence | July 02, 2008 at 01:25 AM
P.R.I.D.E - Hiring the right people is one of the keys. I spent a year under an SM that just didn't do a good job hiring people and the turn over was terrible. Now I'm under an SM at a different store who knows how to hire and it's amazingly different...very little turnover. Plus with all the outside hires for SM positions, when there are people inside the company ready to be promoted, this is a problem. Not sure if anyone is listening to us on the field about this but it's really an issue. There's a posting on mystarbucksidea.com about this and some heated discussion.
I also think that license stores are an issue. When we have grocery stores, bookstores, colleges, etc within a couple miles a company store the sales in that store are going to be effected. I'm not a rocket scientist, but if the Safeway down the street is doing $800-$1,000 a day, that's not going in my pocket. A chunk of that is going to Safeway.
I think it's silly to blame Howard for all of this. We all need to face the fact that our economy is in trouble. I don't think that 2-3 years ago they could look in a crystal ball and see that gas would be over $4.00 a gallon, major natural disasters are happening almost everywhere, milk prices are rising, etc. Plus didn't Howard just return to his CEO position to correct things that were done wrong, and aren't the stores that are closing only about 2, maybe 3 years old?
Sorry about rambling...
Posted by: lattegal | July 02, 2008 at 01:46 AM
I don't see why they don't reduce the workforce through attrition. If they plan ahead, they can figure out which stores will be closing when. They can find out if some partners are leaving anyway or returning to school, etc. The workforce is so fluid anyway that it doesn't seem necessary to bring the axe down when they can use natural attrition to lessen the blow.
Posted by: Drive, He Said | July 02, 2008 at 01:48 AM
Spence... How DARE you say that Howard might work harder than any other partner within the company in one day than we might in a month! That is very disrespectful. It is people like you who make this company fail. Howard states upon anyone's hiring with the company (within the literature that you are forced to read) that profitability comes last, and the first thing is that we have respect for ourselves and our partners, and create enthusiastically satisfied customers. It really IS SUPPOSED TO BE about teaching coffee knowledge, sharing great coffee, and infusing that knowledge to our customers. This seems like the wrong decision. I just think stockholders will want more and more money as time goes on. Sad to say. Howard has blown it.
Posted by: Brian | July 02, 2008 at 01:59 AM
Brian,
Howard is the CEO. I would bet he does work harder than 80% of the company. Think of how many directions he is trying to manage all at once: Legal strategy decisions (with advice of counsel), galvanizing partners, public relations, he must get 800 to 1000 email a day (I have no clue but I could easily imagine this), store design, product development, training issues ... the final decision of everything comes down to him, and the only way to make great final decisions is probably to read a million emails, reports, marketing research, go to meetings, meet with thousands of partners, and then hopefully ... hopefully ... stop and have coffee at a number of random and varied Starbucks and sit and see the stores in action.
God, the list of things that he must worry about all at once, is almost infinite.
He starts early every morning (per the WSJ article that we had on here before), leaves late, and works on Sundays to catch up.
Somehow, I can visualize the life of a CEO. Maybe because I can think of the million and one responsibilities attendant to that position.
It's a different kind of work as the physical and demanding position of a barista, but it IS real work!!! He's running a billion dollar corporation and accountable to a board of directors, and lord only knows how he manages to have time for lunch and coffee at a variety of Starbucks.
You think Howard's blown it: He's been at the helm for 6 months. You can't turn around a ship as big as Starbucks that fast. Let's see where we are about one year to 18 months out from now ... who knows ... maybe then I will be eating my words.
Melody
Posted by: Melody | July 02, 2008 at 02:14 AM
Melody,
You are so right. I'm sure there is some panic in Brians message. Also, lots of emotion right now. I hate to say but unless you've had blinders on this would logically be the next step. I just hate that we have all of these wonderful, passionate partners worrying if they'll still have a job in the next few weeks.
Posted by: Darleen | July 02, 2008 at 02:31 AM
i guess i really need to finally come to the conclusion that despite as many challenges as i have faced since i was "managed out" by my dm and rdo in 2005 after 8 years of exemplary service for the company they were really doing my a favor. the company that starbucks was turning into was simply not a good fit for me, and frankly my exit was inevitable. the fact that i was quite vocal about my concerns that the company was headed in the wrong direction under jim donald's leadership obviously contributed to my departure but also were clearly also very valid. the positive thing for me is that i am well into my process of getting back on my feet, as opposed to getting knocked off them now.
for those planning their next steps now, i wish them luck, and recommend they keep their eyes very wide open as they figure out what to do next. there is only so much room left in the coffee business...
Posted by: jabanga | July 02, 2008 at 05:39 AM
Hey Howard... One way to demonstrate the sincerity of your message yesterday would be to announce that you're going to accept no pay for 2008 and no bonus, to help cover the cost of Leadership Conference.
You could also turn in that big, fat, black Mercedes and ride your bike in since you're less than 7 miles from work. You could also start using one of the shared cars to run errands during business hours...
I like to call it... "walking Your Talk"
Posted by: Pat Nerr | July 02, 2008 at 07:00 AM
Funny... the blame has now shifted. It's the fault of lazy Americans and even lazier staff that is causing all the distress at SBUX.
Maybe Howard could be cloned into "Uber-Partner"! Not only would he be 'back', but he'd be everywhere and work harder than all of you slackers.....
PS: He never left in the first place. That's a PR lie.
Posted by: truth | July 02, 2008 at 08:25 AM
I challenge any of Howard's defenders to go back and listen to the April annual meeting.
Then tell me.... 1) Does he even sound like he believes what he's saying? (I never believed he did.) 2) How do any of those 'transformational plans' actually make this company money? (PPR a joke...Clover is too small to get machines in all the stores in less than a few years....'green initiatives'? Puh-leeze..... etc.
The only clear direction this company has is to cut. Cut, spend, cut, spend, cut, spend.
On what?
Posted by: truth | July 02, 2008 at 08:34 AM
here is my request: if you must close 600 stores, let it be the ugly ones. Having lived in Seattle until a month ago, I didn't know there WERE ugly ones. I assumed they were all as beautiful as the one in Madison Park or as cozy as the one on the corner of Queen Anne Blvd and Boston. Now I am in Stafford VA. The only Starbucks in the area is on Garrisonville. It's a tiny glass box. Not where I would go to write and certainly not where I can imagine getting a Pumpkin Spice Latte come autumn.
Posted by: jocelyn | July 02, 2008 at 10:13 AM