Where did Starbucks go Wrong

I worked for Starbucks for 5 years. During those years I managed one of their highly trafficked downtown retail stores. I still go to Starbucks (Although, not as much as I use to) and I have remained friends with several of the people I met through Starbucks. Even though I have fond memories of the company and of my experience of connecting with people and baristas, I can't help to see their latest efforts for a turn around as further evidence that Starbucks is out of step with not only its customers, but also its partners (aka employees). My first point is the Pike Place roast that is now served everyday replacing the many different varieties that were previously used for coffee. Sounds like a good idea, right? However, it misses the mark. Instead of giving consumer choices, they're going for a one size fits all strategy.

Consumers visit Starbucks for the variety. Sometimes I'm in the mood for the full-bodied, fruity taste of Kenya. Sometimes I'm in the mood for the smoother medium-body taste of Verona. When I go to Starbucks, I don't want to pay $2 for the same roast everyday. If I did, I would just go to Dunkin Donuts or Mcdonalds. This strategy is so backwards and in the opposite direction, I'm beginning to wonder if they even remember who they are. Not only is "one roast for all" a bad idea, its an operational nightmare.

Years ago, Starbucks created a perfected seal that could keep coffee nice and fresh for months. The seal was genius and actual helped transform Starbucks into an international company. The seal also allowed the roasting plants to bag pre-ground coffee for their retail stores. As a store manager, the pre-ground bags allowed you to easily manage your coffee inventory and cost. The bags were also easy to use. If you needed to brew a new batch of coffee, just open a new bag. Simple. Now, fast forward to the present.

What are they doing? Grounding coffee in the stores every day! Coffee of the Day is not being prepared in the highly effective, cost efficient roasting plants, but instead its begin prepared is the waste driven, highly labor intensive retail stores. The negative effect to the company's bottom line can't be avoided. I'm sure it will hurt a stores probability as cost jump. I spoke to a current employee who stated that they grind the coffee throughout the day and the bags end up staying open to the air while they grind more coffee. It her word "how really fresh is it anyway?" I have to say, my disappointment of Starbucks continues to grow daily.

When I was a partner, I witnessed the early stages of the current mess to which they find themselves mired. Over the years I slowly saw the company put more and more emphasis on operations rather than quality and customer service. They hired a bunch of district managers from operational focused retail stores like Blockbuster Video. The executive team really put too much emphasis on pushing products and merchandise to customer. True diehard Starbucks fans will remember getting beat up with the "Would you like a $500 coffeemaker with your Latte today?" Annual Brewing (Machine) promotions

The problem is that Starbuck sets the environment where too many of its employee/partners are encouraged to spend more time stocking and organizing their Hear Music display rather than providing legendary service and connecting with customers. It's hard for a barista to spread the love when they have to run a Café Check every 10 minutes or some other daily checklist item.. If Starbucks is serious about getting back to its Pike Place roots they should focus on people rather than gimmicks and merchandise. People will ultimately shop and make purchases once they feel the love.

Article Source: http://www.cursebustersound.com/article

About the Author Bathony Williams is a writer, traveler, avid pop-culture connoisseur and a downtown Chicago shopping expert living in Chicago, Illinois. Bathony frequents Mypersonalcityshopper.com for shopping in Chicago, www.mypersonalcityshopper.com/the-magnificent-mile-Chicago.html">magnificent mile shopping, Chicago shopping malls and more.

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