Starbucks needs to stop opening so many new branches and start making better coffee

[marmar]

from the Guardian UK:



Trouble brewing
Instead of trying to offer its customers 'romance and theatre', Starbucks needs to stop opening so many new branches and start making better coffee
Conor Clarke

About Webfeeds January 15, 2008 6:30 PM | Printable version

I spend a good portion of my waking life in Starbucks, and am sensitive to its changes. One came along about a month ago: for the first time, I was asked if I wanted "room for dairy" in my coffee. The request was too inelegant to be spontaneous - "room for dairy"? - and after some highly scientific research into the matter (I talked to a couple of idle employees) an anonymous barista revealed that the orders came from on high: "We're supposed to start making the patrons feel like they are a crucial part of the beverage-making process."

If it sounded at the time like a bizarre and desperate new policy, the desperation became a little more understandable in light of last week's headlines. Starbucks' share price dropped in 2007 by more than 40%, and Bear Stearns lowered its rating of the company's stock from "outperform" to "peer perform" - which is a way of saying the company has gone from being as frothy as a Frappuccino to flat as a cup of regular joe.

If that wasn't enough to convince you that the company is in trouble, its chairman also dumped the chief executive - along with two other execs - and installed himself at the helm. And, just to pile on a few more challenges, an article in the Wall Street Journal revealed that McDonald's is about to challenge the long-dominant Starbucks by offering specialty coffee beverages. It's a regular David versus Goliath contest - until you realize that David has 15,000 US locations and $21.6bn in annual sales. All said, it was a bad year capped off by a worse week.

So what went wrong? Many things. Starbucks was no doubt hurt by a general slowdown in consumer spending: the same shoppers who cut back on luxury goods at Tiffany's probably cut back on their venti macchiatos, too. Then there are the little details. The Wi-Fi access at Starbucks still isn't free - despite the fact that readily available high-quality internet is swiftly becoming the norm for the US coffee-shop set - and much of the new in-house music is as annoying as it comes. And let's not forget the general brand-dilution that attends trying to sell everything under the sun. My neighbourhood Starbucks sells board games, which seems like a product that is no more obvious to market in a coffee shop than, say, toilet plungers.

But, most importantly, the company is choking on its own growth. According to the Financial Times, Starbucks added 2,500 stores last year, which amounts to about one-sixth of its global total and well over six stores a day. There is a widespread sense that quantity has come at the expense of quality. Training a large enough workforce and keeping each interior fresh and clean is a bit more difficult when the number of stores jumps an order of magnitude every few years. Or, as the Onion put it, "New Starbucks Opens In Rest Room Of Existing Starbucks." .....(more)

The complete piece is at: http://commentisfree.guardian.co.uk/conor_clarke/2008/01/trouble_brewing.html

[mondo joe]

1. Oh poo. Starbucks coffee is perfectly good. I prefer Peets or some microroasters, but

when traveling I consider Starbucks a reliable source.

I also like when I'm asked if I want room because I do - though I typically just say so in my order.

[marmar]

2. I like the soy latte....because the soy milk takes the edge off their bitter brew....

But a regular cup of brewed coffee at 'Bucks? A cup of water with dirt in it couldn't be much less pleasing to the taste glands.

[tishaLA]

18. MMMMMMMMMMM Peet's!

I love them. Just good old regular coffee is amazing there. But a caramel latte is heaven.

[wain]

3. Plus they are getting thin on talent

Hard to train and keep quality people with a fast expanding enterprise. A common failing of fast growing companies that forget, or can't sustain what got them there in the first place.

[NRaleighLiberal]

4. We think Starbucks coffee is just fine....

Compared to the dilute dishwater that dunkin donuts sells, or most other swill that is passed off as such, it is good enough. It isn't nearly as good as the daily brew we make each day in our French Press using freshly ground Peets - or our own roast (a great hobby, green beans from Sweet Maria!). The one thing that bugs me is this "Starbuck Coffee is overpriced" BS - if you avoid the espresso drinks or the frozen sweeties, their regular coffee is less than 2.00 per cup and well worth it.

[wuushew]

5. I don't understand the appeal of Starbucks

between work and home most people have easy access to brew their own coffee at a fraction of the cost.

They will never earn a red cent from me.

[burythehatchet]

7. A fad that lasted way to long

[burythehatchet]

6. BLECH CHARBucks

[Djinn]

8. why would anyone drink that shite

Coffee tastes like COFFEE not like mocha, or mint or caramel. If you want a milkshake go and buy one.

If you don't like the taste of coffee why drink it?

That said, in 5 weeks in the US (New England) I found ONE cafe selling real coffee. That over ground, over processed and burnt powder that you guys call coffee is an absolute abomination.

Thankfully I live in Melbourne so my espresso fetish is well served.

[marmar]

11. True...In my trips to Europe, it's hit-you-over-the-head obvious how much better the coffee is....

.... Even in the train stations of Europe, you get coffee that blows away the crap here in les Etats-Unis.

[Djinn]

13. we have that in micro

if you're ever in Sydney DO NOT DRINK THE COFFEE! not really sure what happened up there, they got plenty of post war Italian migrants too but you can't get a decent non burnt cup anywhere outside of two small places in Glebe.

We actually have Starbucks in Melbourne and it amazes me that ppl go there, they're always within a few metres of a real coffee shop, you don't even need to look, just smell, who wont charge you $5 and wont pour half a kilo of fake whipped cream on top of it.

[derby378]

9. And what's with over-roasting all their coffee beans?

I like their hot chocolate, but even that has a slight burnt flavor. What gives?

[msongs]

10. their stock has gone down more than half in a year. public must be wising up nt

[Raine]

12. At least Starbucks knows how to froth milk

and put on a good head of foam. I don't know how many places I've been to that can't make foam and then try to tell me that's the way it's suppose to be, (a teaspoon of weak watery milk on top) oh please! :eyes: I don't care that much for the roast of the coffee but at least the foam on their cappuccino is decent.:)

[Djinn]

14. that's because they make kiddie milk drinks

not coffee. Even cappucino's (AKA jnr coffee) shouldn't have as much froth as Starbucks piles on. It's a drink not a dessert. They even put an inch of foam on latte's :grr:

[LisaL]

15. I see a lot of Sturbucks around here, close to each other.

Doesn't make sense to me, to have several in walking distance from each other.

[woo me with science]

16. Last espresso drink I had there tasted like dishwater.

I figure because they want you to buy two shots.

[Skittles]

17. we have banned Starbucks coffee from our work coffee club

that shit has NAS-TAY aftertaste

[mwb970]

19. There are two brand new ones right near me.

They are walking distance apart - not sure why we need two. I've never been to one myself, but I guess I'm the only one!

By the way, Jay Leno had a joke once (well before the writers' strike) about how they're opening a new Starbucks in his city - inside another Starbucks!

har har

[MadHound]

20. Can't stand Starbucks

Burn, bad tasting coffee served in pretentious places by pretentious people for waaaay too much money.

What's funny is in the nearby college town, Starbucks got run out of the downtown/university district by the local coffee shops. Starbucks now lurks and licks its wounds on the outskirts of town, hoping to infiltrate suburbia, or at least sell its bulk coffee in local stores.