Starbucks chairman warns executives of damage to brand

[Zeus]

Starbucks chairman warns executives of damage to brand

[SIZE=2]LOS ANGELES (Reuters) - Starbucks Corp Chairman Howard Schultz told executives in a memo last week that measures taken to fuel the coffee shop chain's rapid expansion had led to a "watering down" of its iconic brand.[/SIZE]
[SIZE=2]Schultz, Starbucks' founder, wrote on February 14 that automatic espresso machines, bagged coffee and "cookie-cutter" store designs had led to a sterility at the chain that had invited competition from fast-food companies and others.[/SIZE]
[SIZE=2]The memo, posted on the Web site http://www.starbucksgossip.com, was first reported on by the Wall Street Journal on Friday. Starbucks spokeswoman Valerie O'Neil confirmed the authenticity of the memo to Reuters.[/SIZE]
[SIZE=2]"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 (led) to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand," Schultz wrote in the memo.[/SIZE]
[SIZE=2]In the memo, which was sent to Chief Executive Jim Donald and other members of senior management, Schultz said he took "full responsibility" for past decisions.[/SIZE]
[SIZE=2]"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," he said. [/SIZE]
[SIZE=2]Romance has gone [/SIZE]
[SIZE=2]As examples, Schultz said automatic espresso machines had made service faster, but had removed "much of the romance and theater that was in play" with traditional espresso makers, which required baristas to pull each espresso shot themselves.[/SIZE]
[SIZE=2]Streamlined store designs, which "satisfy the financial side of our business," meant stores "no longer have the soul of the past ... some people even call our stores sterile, cookie cutter," he said.[/SIZE]
[SIZE=2]O'Neil said she was not aware of any specific changes that would be made to the business, adding that the memo was part of a long-standing commitment by Schultz for Starbucks to remain true to its roots.[/SIZE]
[SIZE=2]"It is not a one-off," O'Neil said. "Some people are thinking that this is a sign of something. No, this is just something that (Schultz) does."[/SIZE]
[SIZE=2]In the last decade, Starbucks has grown from 1,100 stores to more than 13,100 -- and the company's rate of expansion keeps increasing. It plans to open 2,400 stores this year.[/SIZE]
[SIZE=2]At the same time, however, sales increases at Starbucks stores open at least 13 months have slowed.[/SIZE]
[SIZE=2]Same-store sales rose 7 percent in fiscal 2006, compared with a rise of 8 percent in 2005 and 10 percent in 2004.[/SIZE]
[SIZE=2]In the United States, the company has faced stiff competition in the past two years as restaurant chains like McDonald's Corp., Dunkin' Donuts and Burger King Holdings Inc. have upgraded their coffee offerings.[/SIZE]
[SIZE=2]In the past, Starbucks has said it sees those moves as positive for its business because they help to increase consumer awareness and demand for specialty coffee.[/SIZE]
[SIZE=2]But in last week's memo, Schultz said Starbucks' "current state of affairs" had allowed competitors "to position themselves in a way that creates awareness, trial and loyalty of people who previously have been Starbucks customers. This must be eradicated."[/SIZE]

[mikmik316]

Ang problema sa Starbucks sa Pinas ang mahal na masyado... Imagine a Frap you can order at 110-120 max for Venti before 160-180 na ngayon... tsk tsk...

I am just wondering kung nagmamahal ba ang coffee beans, gatas at syrup o kung mahal na ang rent sa space or mataas na sweldo ng mga barista? definitely their higher prices created an opportunity for other brands to get the 80-120 peso budget of a regular coffee drinker...

[oldblue]

nadadamihan pa din ako sa small, nakakataba

[GasJunkie]

just drink half???

[Lucius]

Problem is... madaming feeling soci pag nasa Starbucks. What's the big deal of drinking coffee there. We all have been there, but I didn't feel anything special at all. There's nothing fancy. It's just a coffee shop dammit! Usual suspects are of course, girls. No offense but I feel sick when I see these types around.

Yup, super mahal pa. Dati ung Vanilla Cream Grande 105 lang now 120+ na yata or something. Dapat dominated ng couches, hindi ung wooden chairs that hurts after an hour lalo na if naka-laptop ka or kwentuhan with friends.

[usokpower]

Problem is... madaming feeling soci pag nasa Starbucks. What's the big deal of drinking coffee there. We all have been there, but I didn't feel anything special at all. There's nothing fancy. It's just a coffee shop dammit! Usual suspects are of course, girls. No offense but I feel sick when I see these types around.

Yup, super mahal pa. Dati ung Vanilla Cream Grande 105 lang now 120+ na yata or something. Dapat dominated ng couches, hindi ung wooden chairs that hurts after an hour lalo na if naka-laptop ka or kwentuhan with friends.

I agree with you all the way. This only proves that our society has been plagued or has been delusioned with a vice called, "kayabangan". I often hear people complain and whine and blurt the words "mahirap ang buhay" countless of times. But this same people have the spare money to go to starbucks frequently to buy a 100 peso worth of coffee but could ill afford to pay for a 70 peso worth of lunch meal.

As for your second paragraph. It think the law of supply and demand comes into play. As for the wooden chairs, I think it is part of their tactic to increase their rate of turnover

[GasJunkie]

^^^^^^^^^



all of this

[GasJunkie]

*jun why is the ship thrusters at the front??? :scratchhead: (sig)





:fly:

[Jun aka Pekto]

*jun why is the ship thrusters at the front??? :scratchhead: (sig)
:fly:

OT
Bah! You young kids. That's right, you were too young to remember Voltes V or Space Cruiser Yamato/Starblazers

Those are dual wave-motion guns. Kinda like WMD superweapons. The "tambucho" is still behind where it belongs....

Rear shot:

[GasJunkie]

all the while I thought it only goes in reverse.




:fly:


edit will go look for rents :spider:

[CaRGirL]

to each its own...

[wren]

this is the original post...

Starbucks chairman warns executives of damage to brand

[SIZE=2]LOS ANGELES (Reuters) - Starbucks Corp Chairman Howard Schultz told executives in a memo last week that measures taken to fuel the coffee shop chain's rapid expansion had led to a "watering down" of its iconic brand.[/SIZE]
[SIZE=2]Schultz, Starbucks' founder, wrote on February 14 that automatic espresso machines, bagged coffee and "cookie-cutter" store designs had led to a sterility at the chain that had invited competition from fast-food companies and others.[/SIZE]
[SIZE=2]The memo, posted on the Web site http://www.starbucksgossip.com, was first reported on by the Wall Street Journal on Friday. Starbucks spokeswoman Valerie O'Neil confirmed the authenticity of the memo to Reuters.[/SIZE]
[SIZE=2]"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 (led) to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand," Schultz wrote in the memo.[/SIZE]
[SIZE=2]In the memo, which was sent to Chief Executive Jim Donald and other members of senior management, Schultz said he took "full responsibility" for past decisions.[/SIZE]
[SIZE=2]"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," he said. [/SIZE]
[SIZE=2]Romance has gone [/SIZE]
[SIZE=2]As examples, Schultz said automatic espresso machines had made service faster, but had removed "much of the romance and theater that was in play" with traditional espresso makers, which required baristas to pull each espresso shot themselves.[/SIZE]
[SIZE=2]Streamlined store designs, which "satisfy the financial side of our business," meant stores "no longer have the soul of the past ... some people even call our stores sterile, cookie cutter," he said.[/SIZE]
[SIZE=2]O'Neil said she was not aware of any specific changes that would be made to the business, adding that the memo was part of a long-standing commitment by Schultz for Starbucks to remain true to its roots.[/SIZE]
[SIZE=2]"It is not a one-off," O'Neil said. "Some people are thinking that this is a sign of something. No, this is just something that (Schultz) does."[/SIZE]
[SIZE=2]In the last decade, Starbucks has grown from 1,100 stores to more than 13,100 -- and the company's rate of expansion keeps increasing. It plans to open 2,400 stores this year.[/SIZE]
[SIZE=2]At the same time, however, sales increases at Starbucks stores open at least 13 months have slowed.[/SIZE]
[SIZE=2]Same-store sales rose 7 percent in fiscal 2006, compared with a rise of 8 percent in 2005 and 10 percent in 2004.[/SIZE]
[SIZE=2]In the United States, the company has faced stiff competition in the past two years as restaurant chains like McDonald's Corp., Dunkin' Donuts and Burger King Holdings Inc. have upgraded their coffee offerings.[/SIZE]
[SIZE=2]In the past, Starbucks has said it sees those moves as positive for its business because they help to increase consumer awareness and demand for specialty coffee.[/SIZE]
[SIZE=2]But in last week's memo, Schultz said Starbucks' "current state of affairs" had allowed competitors "to position themselves in a way that creates awareness, trial and loyalty of people who previously have been Starbucks customers. This must be eradicated."[/SIZE]

how did we get to this point? :lol:

[nicolodeon]

how did we get to this point? :lol:

By following the Mad Hatter on the Yellow Brick Road.

[Alpha_One]

I sense this thread going even further off topic in a completely different direction.

[Zeus]

this is the original post...






how did we get to this point? :lol:

Oo nga e, anu nga ba o meron bang Starbucks Experience na unti-unti ng nawawala dito sa atin? O may pagbabago ba sa quality ng service? o taste ng Starbucks?

[Jun aka Pekto]

this is the original post...

how did we get to this point? :lol:

In true Pinoy fashion, someone says something not really related to the topic. But, if it's interesting, everyone put their game faces on and go at it. I know I'm guilty of it sometimes. Oh well. I had a lot of fun, though.

Back to Starbucks. They're whining of automation because it's too efficient. If they go back to making drinks manually, then they'll probably whine because it's not efficient.

I say, face it. SB's a fad. Sooner or later the magic will wear off and it'll be considered a general patronage eatery like McDonalds, Jollibee, or Kentucky's. Personally, I find nothing wrong with that. SB will just have to scale back accordingly.

Gee, I hope that puts this thread back on track..... It didn't take me long to whip something up from where the sun don't shine........

[mazdamazda]

Awww... I didn't get the chance to ban anyone or delete flame posts in this thread! :blue:



:rofl:

[Jun aka Pekto]

Ban? Gee, everyone seemed pretty tame to me. My wife and mother in law's bickerings are a lot worse than anyone's postings here. I'm spending more time here because I don't want to get drawn to whatever they're arguing about.....

[Jun aka Pekto]

Ban? Gee, everyone seemed pretty tame to me. My wife and mother in law's bickerings are a lot worse than anyone's postings here. I'm spending more time here because I don't want to get drawn to whatever they're arguing about.....

OT:
Add: Aha. I get it. My mother in law's telling my wife that she should be more loving to me and serving me more..... He He He. I'm having a good day........

[Helios]

for me..starbucks has better tasting fraps then most competitors within the same market segment (i.e. figaro, Seattles, Mocha blends, UCC, etc.)

unfortunately starbucks acquired most if not all seattle's best branches years ago, in case you're unaware

may pandesal ang SB. may kasama pang palaman: tuna and corned beef yata.

Another reason for SB's price is due to its capability to take on aspects of whatever the environment might be wherever it trades. The espresso tastes similar in every country but the food will have a local flavour. In other words, the brand adapts and appeals to any culture without losing it's core identity.

OT
Bah! You young kids. That's right, you were too young to remember Voltes V or Space Cruiser Yamato/Starblazers

I may be able to relate the topic about some people thinking it's faux pas to speak in his native tongue, but yamato on this thread? Super OT I declare we're off to outer space... pro-tecting mother earth... (sorry can't help it)

Awww... I didn't get the chance to ban anyone or delete flame posts in this thread!

if there's a need to ban someone, then ban this mopface.

he sickens me

this is the original post...how did we get to this point? :lol:

well like most things, Starbucks is not all good or all bad but capable of both. posters on this forum are in no way different (hey I meant it in a nice way)

carry on, folks