Starbucks: Going Back in Time

It's been a while since I wrote a blog on Starbucks. I'm sure my brother was quite disappointed by that fact; so when I was scanning the headlines I noticed that Starbucks was listed. In having read what the article and all the other news stories regarding Starbucks were about, I decided to write about it. If you'll recall (at least those of you with a love of coffee... in particular of Starbucks Coffee) last month, all the stores nationwide were shut down in order to 'train' their employees on how to make coffee. It seems like a ridiculous idea but it makes sense once you delve a bit deeper into what the company is hoping to do.

As it is, Starbucks is now getting stiffer competition from stores like McDonalds and Dunkin Donuts. These long established chains have also started offering up premium coffees at sub-premium prices. Now about ten years ago I probably would have argued with you about the fact that Starbucks had a different essence to it since coffee was ground, prepared and served right before your eyes. That was part of the allure for many novice coffee drinkers. Pair that with the popularity of "Friends" where the main characters hung out in a coffee shop almost all the time and there you had the perfect reason for many other aspiring Friends-esque people to want to do the same thing. As time went on, the chain grew by leaps and bounds (and we're talking Brobdignagian steps here) and soon the focus went from providing individualized service to providing coffee quickly and efficiently. In order to meet those requirements, Starbucks went the way of McDonalds and started having things pre-prepared.

Previously the big factor for Starbucks was that the coffee beans they ground were freshly ground, usually just moments before you ordered your cup. When demand increased, they couldn't keep pace any longer. Not that they didn't have enough stores but they believed that they had to be able to get coffee into the hands of the consumer faster than any of the competition. Hence you have a Starbucks outlet practically every thirty or forty feet. In New York City I believe there's one literally every block. Costs to maintain and support these sites increased and quality began to decrease. Pretty soon people started to see that they were getting what in essesnce was pre-prepared coffee (with little or no 'personal touches') that were starting to cost an arm and a leg.

These factors helped McDonalds get their foot in the door and now they are wiggling quite hard to open it farther. This is why Starbucks has been trying various methods meant to get the focus back on the coffeehouse experience and away from being perceived as a McDonalds-like experience of get your coffee and get out. But how does one signal these changes to consumers? Regulars probably already knew about it but what about the average Joe who stops in for a cup of Joe every once in a while? Simple. Do something that draws a lot of attention. Shut down all stores nationwide for a day. That certainly garnered attention and certainly gave customers something to ask about when stores re-opened the next day. Think about it. You probably did discuss this event with your friends or colleagues because there was undoubtedly someone who was affected by this turn of events. That one event helped make Starbucks significant again (if for only that one day).

Now that people were talking they could know that the reason was to help stimulate improvements in the stores and the products they sell. Will all this effort pay off for them? I'm not sure. I don't think the problem with Starbucks ever was their product, rather I think it was the patience and preferences of us customers. There are those who have to have their coffee prepared with about as much detail as James Bond's original vodka martini recipe. Rather than providing more places to find your coffee, I think if the chain had maintained focus on providing quality products, they would have done well. Their current course of action appears to be aimed at justifying their higher costs and making their 'elite' image stick with consumers. It will probably work but those of us who have been loyal customers from the beginning. Whether it brings back old customers or lures new customers remains to be seen.