Starbucks, I caused all your problems

authorPosted by gdiesh, Friday, March 7th, 2008 | About this Post


Starbucks: I caused all your problemsYes, I am the one who tries to avoid buying your coffee. I tell others to resist the convenient temptation of your omnipresence. I believe I am the cause of your recent troubles. I am not apologetic, but I hope that you will learn from your mistakes and rise up to the challenge of being…umm… less starbucksy. Don’t get me wrong, I think you did a lot of things right including creating anchoring by offering product consistency, and adding those extra brand touches to elevate that lowly cup of Java to an aspirational cup-to-have.

To those who care to know (and Starbucks, if I were you, I would be searching Google everyday to find out what people think of you), here are the reasons why I have made it my mission to seek out alternatives sources to feed my caffeine addiction:

  1. Starbucks coffee sucks? To me, the coffee has always tasted burnt. I am not a coffee connoisseur like the good people at 2paths but even to my relatively unsophisticated coffee palette, Starbucks never felt ‘good’.
  2. It all began with ‘No free internet’ (Starbucks has changed that, but it’s too late)? Ok, so this is geek reason, but it had a ripple effect that lead to #3. Basically, I don’t understand why I would have to pay a zillion dollars for a “tall” coffee and then pay for a service that should be as basic as providing lighting and mind-numbing muzac.
  3. I found ‘others’. Leading from # 2, I started looking for cafes that had free internet. Free internet lead me to cafes with great coffee! Take 5 café in Vancouver is great, as is Caffé Artigiano which has amazing coffee (and terrible baked goods). Lesson: sometimes your ancillary, supporting services are the reason why people buy into your primary brand offering.
  4. I heart community. In this world of remote offices and telecommuting, cafés are the new networking opportunity. Starbucks tries to create a strategically comfortable environment with its big arm chairs and carefully positioned mood lighting, but I am thinking that it takes more than just soft cushions to make for a successful third place what is! For example: Take 5 café lends its location to geek events in the evenings after open hours (fringe benefit: geeks tend to drink lots of java, and do so during these events too). Result: Now geeks flock to the café at all hours of the day! If you are looking to hire your next freelance coder/designer, chances are you will find them huddled in the back of the café, working on their laptops and guzzling down their third cup of java. Lesson: big brands need to work harder to give managers the freedom to operate each store as an independent business and make ‘authentic’ community contributions not the catch-all ones that are dictated at a corporate level.
  5. Anonymous service. I have worked in retail and I have worked for a large global brand, so I know that customer service training can sometimes takes the humanity out of that service. It all becomes a timed science of making eye-contact within x number of seconds and saying thank you in just the right way. Again, I suggest that Starbucks and every other mega retail brand consider going back to the idea of creating “villages” around their stores. Look to hire people who genuinely enjoy people. Look to make each store unique, different and while it can have the comfort of leveraging familiarity of the same logo, same product, it should be courageous enough to respond to a particular community’s needs. Treat that 65 year old customer differently than the 30 year old who buys a low-fat, soya latte with extra foam from you every day. Keep your humanity, and don’t correct the customer when they order a “small” coffee.
  6. Laughable brand extensions. OK, I guess I am a bit of a brand Nazi but I don’t want to give my hard earned money to a brand that thinks it’s so beautiful that it should be able to sell just about anything with its logo on it. How many types of tumblers does this world really need? What do plush toys have to do with the primary product i.e. a decent cup of coffee? Lesson: create a brand that is known for what it does best, keep a laser focus on that strength and don’t deviate from that focus. You seem wasteful and self-congratulatory when you overdo the logo placements.
  7. I like local more then I like global. When I go to Europe, I resist the temptation of going to any American brand restaurant. Sure it’s easy to order a Royale with cheese what is at McDs. And it’s a linguistic and cultural challenge communicating with the owner of a petit bistrot. “I am asking for a medium rare steak but I would prefer if the cow were not still breathing when it is served to me”. But McD’s ain’t Paris. And Starbucks doesn’t feel local. If I want to feel posh, I go to 49th Parallel. I want to feel like I am doin’ the drive what is so I go to Calabria café with its somewhat garish, fake Italian statues and unpretentious attitude. I want the local environment to impact my coffee experience. I don’t want the same lighting, same music and same artwork comfort but maybe that’s just me.
  8. I want to curb the infection and not encourage it. Even if you love Starbucks and can’t live without it, you too would admit that the sheer number of stores that have cropped up in the last few years is a bit nutty. Do we really need a Starbucks store across the street from..another Starbucks? Vancouver seems to be hardest hit by the fungal growth of the green logo stores. “I’ve never seen so much coffee in all my life. The whole town is on a caffeine jag,” said Bette Midler, when she performed in Vancouver.
  9. If I were a coffee shop I would be. Picture it, a little cafe with the bubbly, friendly tattooed crazy coffee girl (barista would be too pretentious, and not sure why she is a girl! Frued?). The smell of food and coffee would be mixed and the air would be warm and the music would be Radiohead-ish. Strange but hey, that’s me. I tend to try and use my money to vote up the brands that reflect who I am (or want to be). Little bit of narcissistic anthropomorphism what is. If I were a coffee brand I hope I am not seen as a Starbucks. Apparently a study of 8000 consumers found Starbucks to be “arrogant, intrusive and self-centered“.
  10. I can’t stand the thought of sameness. I said it time and again in this little list, but one of the reasons that I am so fascinated by brand creation and management. I think we need to challenge how good brands are built. The whole idea of sameness is unnecessary. The idea of wrapping a marketing message around a product is such a throwback to the industrial revolution. We are now living in emotional times. I think the future of successful brands flips the equation on its head. As this brilliant article suggests, grassroots brands are cropping up that start with an emotion or thought and then manifest into a product that reflects that emotion best, not the other way around. Starbucks started that way but along the way it seems to have shifted its focus from coffee and experiences around that drink, to growing exponentially. Something got lost along the way and got replaced with this sameness/safeness that I question.

2 Comments »

    If you’re in Yaletown or Granville Island, be sure to check out AGRO Cafe. AGRO Cafe coffee is Fair Trade and roasted in Vancouver. AGRO Cafe sources coffee direct from farmers in Kenya and around the world, through their non-profit NGO organization.

    http://www.agrocafe.org

    Comment by Dave — March 9, 2008 @ 4:04 pm

    Nice one Gagan. Spot on.

    Interestingly, I know some senior people within Starbucks and others working hard for them to steer the great beast back on track now that Howard Shultz is back in the driver’s seat. It may be too late for you and I, but I bet we’ll see a lot of the issues you raised addressed in the coming months. Will it pull them out of this tailspin? Maybe. Either way, the current situation seems like more of a correction anyway. Let’s hope at least it allows the mom & pop coffee shops like those found on Commercial Drive in Vancouver to survive.

    Comment by Busse — March 12, 2008 @ 10:02 am

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