In a memo distributed to top executives, Starbucks chairman warned that rapid expansion had unfortunately contributed to the “dilution” and “commoditization of the Starbucks experience.” Howard Schultz charmingly went on to lament specific examples of the company’s “cookie cutter” problem, but then concluded the letter in a manner one would expect from a Starbucks executive: “This must be eradicated.”
Wall Street Journal:
Mr. Schultz sent the memo to top Starbucks executives on Feb. 14. in an email with the subject line “The Commoditization of the Starbucks Experience.” It first appeared on the Web site starbucksgossip.com. A Starbucks spokeswoman confirmed the memo’s authenticity.
“Over the past ten years, 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,” Mr. Schultz wrote in the memo.
“Many of these decisions were probably right at the time, and on their own merit would not have created the dilution of the experience; but in this case, the sum is much greater and, unfortunately, much more damaging than the individual pieces,” he wrote.
“While the current state of affairs for the most part is self induced, that has lead to competitors of all kinds, small and large coffee companies, fast food operators, and mom and pops, to position themselves in a way that creates awareness, trial and loyalty of people who previously have been Starbucks customers. This must be eradicated,” he wrote.
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By Moni, February 27, 2007 at 8:00 pm #
(Unregistered commenter)
Groovesmoothly . . . that was hysterical !
Yes, Four$bucks is a grande cafe experience. Small, Tall, or Venti. Why didn’t they say petite ? That would have made the “experience” so much more authentic.
Report thisWhere-ever you might find yourself in the U.S.-- once you enter the familiar brown interior of a Fourbucks you’ll forget where you actually are . . . Chicago . . . Honolulu . . . or Seattle ?
Ya can’t help being a sell-out these days. Even Dylan is allowing them to sell his music.
By Dennis D, February 27, 2007 at 6:56 pm #
(Unregistered commenter)
Dr. Evil was right.
Report thisBy C.P.T.L., February 27, 2007 at 4:40 pm #
(Unregistered commenter)
I remember a place called The Coffee Connection, since bought out by Starbuck’s, that sold coffees from all over the world; to drink, or ground on the premises to take home. The amazing smell, the pictures of coffee plants, written descriptions, the bins of it; the place was a hundred times more wonderful for a coffee lover than Mr. Schultz’s best-case Starbuck’s so-called experience.
Report thisBy Mad as Hell, February 27, 2007 at 7:58 am #
(Unregistered commenter)
“While the current state of affairs for the most part is self induced, that has lead to competitors of all kinds, small and large coffee companies, fast food operators, and mom and pops, to position themselves in a way that creates awareness, trial and loyalty of people who previously have been Starbucks customers. This must be eradicated”
Right. Make D*** sure nobody can get a GOOD cup of coffee! ERADICATE the competitors!!!!! This ACTUALLY sounds like a direction to engage in predatory practices, which are usually ILLEGAL!
The ONLY legitimate way Starbucks can “eradicate” competitors is sell a better cup of coffee cheaper. As for the “Starbucks Experience"--what the BLEEP is that??? It’s a COFFEE shop for crying out loud! What’s to experience? There’s coffee, there’s a place to sit down, maybe there’s a pastry you can snack on. That’s not an “experience”, that’s a coffee break!
I don’t go to Starbucks, and haven’t for 10 years since I couldn’t get a decent cup of espresso, nor proper fixings, despite it costing me $6 even then. When some plane or other place FORCES me to drink Starbucks, the coffee is always tastes like burnt rubber and acid.
People who say they LOVE Starbucks, when they recommend movies or restaurants, I don’t go to them either.
Thank HEAVENS for Dunkin’ Donuts. Their coffee is definitely drinkable, and you can get an EXTRA large hazelnut coffee for less than $2.25.
Report thisBy Groovesmoothly, February 27, 2007 at 7:45 am #
(Unregistered commenter)
Starbucks Official Memochino Ice Cold Blended Message:
Report thisOur shock and awe campaign to build a Starbucks next door to every mom and pops coffee shop from Pasedena to Peoria seems to have caused an insurgency we did not expect. We thought that we had taken control of the market due to our rebranding of coffee as sizes. We brought their customers the freedom from a close knit community coffeehouse by following what we’ve learned from Walmart’s manual “Corporate Freedom (Utilizing our Government Protected Strongarm Tactics in the New Millenium)”.
These ingrates don’t know what we’ve gone through to bring our way of doing coffee to them. We’ve given them things they didn’t know they needed like 70% more caffeine (addiction), fancy made-up drink names (celebrity) and how about all those new drive thru windows (never have to stop burning fossil fuels)?
Most importantly though we have given their dope smoking slacker kids corporate jobs that pay above minimum wage (but below the living wage- so you can continue to support them) plus we offer them benefits even the American government doesn’t think think they deserve. We must instill in them that corporate freedom is cool and a relationship with your employer is a foolish waste of time.
These insurgent coffeehouses must be eradicated once and for all so that the brave baristas that call our triple half-caf lowfat carmel macchiatos can continue slaving for our corporate American dream. If they are not eradicated these kids will have to choose between working for individuals that have no branding skills and care more about theiremployees, their community and their planet than their profits or for corporate freedom loving profit driven American dreamers like us.
By Douglas Hooten, February 27, 2007 at 7:39 am #
(Unregistered commenter)
You can get free online access to Wall Street Journal and those other subscription sites with a netpass from: http://news.congoo.com
I saw this in several blogs.
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