| |
Main
Date: 08 Mar 2007 15:28:44
From: Bradley B.
Subject: Starbucks strategy unchanged after memo: exec
|
http://www.reuters.com/article/Food07/idUSN0722832020070307 a pertinent quote: On Wednesday, Gass said it was unlikely that Starbucks would ever do away with the automatic machines. "Our customers have helped lead us to where we are today," Gass said. "They want their beverage in under three minutes."
|
|
| |
Date: 09 Mar 2007 11:27:51
From: Dan Bollinger
Subject: Re: Starbucks strategy unchanged after memo: exec
|
> On Wednesday, Gass said it was unlikely that Starbucks would ever do > away with the automatic machines. > > "Our customers have helped lead us to where we are today," Gass said. > "They want their beverage in under three minutes." I think people need to consider that the purpose of the memo had nothing to do with its subject, but may be part of a larger, political, corporate strategy having to do with running the company, and not the products or services themselves. Dan
|
| |
Date: 09 Mar 2007 07:36:56
From: ramboorider@gmail.com
Subject: Re: Starbucks strategy unchanged after memo: exec
|
The other thing to keep in mind is that damn near nobody goes into a Starbucks for a straight shot of espresso. With a few ounces of steamed milk involved, the charred shot at the bottom of the cup from a Starbucks super-auto is reasonably tolerable. A shot would be terrible, but who orders shots? That's just not part of their ket. Is it? I've never seen anyone get a straight shot in one of their shops and I used to get coffee there fairly often before I got INTO this stuff. So I think their strategy makes sense for them. It OBVIOUSLY makes sense for them. -Ray
|
| |
Date: 09 Mar 2007 07:25:33
From: John S.
Subject: Re: Starbucks strategy unchanged after memo: exec
|
On 9, 9:46 am, "J. Clarke" <jclarke.use...@cox.net > wrote: > John S. wrote: > > On 8, 10:28 am, Bradley B. <spama...@127.0.0.1> wrote: > >>http://www.reuters.com/article/Food07/idUSN0722832020070307 > > >> a pertinent quote: > > >> On Wednesday, Gass said it was unlikely that Starbucks would ever do > >> away with the automatic machines. > > > It only makes sense for a company with 13,000 coffee shops and plans > > to open over 2,000 new ones annually to automate as much as possible. > > Their success shows the large cost of training that many real baristas > > would probably not have much impact on sales. And manual espresso > > machines would slow the production line even more than the mixing of > > frapaccino drinks already has. > > > Of more concern is the comment: "In the memo, Schultz warned that > > measures used to fuel Starbucks' rapid expansion over the last decade > > threatened to "commoditize" the brand. > > > For instance, he said the introduction of automatic espresso machines > > had made service faster, but had removed "much of the romance and > > theater that was in play" with traditional espresso makers, which > > required baristas to pull each espresso shot themselves." > > > I have to wonder if the CEO operates in an information vacuum. Anyone > > who has been in a Starbucks in the past 15 years would realize in an > > instant that their products have been commoditized for a long time. > > As with McDonalds hamburgers, it would be impossible to run a chain of > > 13,000 coffee outlets efficiently without a lot of the standardization > > that leads to coffee products becoming sterile commodities. > > > I will continue to enjoy an espresso pulled by a barista who clearly > > knows what he is doing. The result is always full of flavor and aroma > > that does not require sugar to overcome the throat-grabbing bitterness > > of a starbucks product. > > The problem is _finding_ such a barista if you live in one of the > coffee-impoverished regions of the world. That's the point - there are relatively few knowlegable baristas. And the good ones will likely be attracted to localities where there is a big demand for their services. Because there are not enough baristas to go around Starbucks, Caribou and all the other chain stores have to use other methods of creating coffee products. The chains produce a consistent-if-average espresso quickly on automated machines that only require the operator to properly position the cup. At some point Starbucks will have to automate the blending and mixing of their slushy and iced drinks to keep the cash register line moving. Those products are so labor intensive that several consecutive orders can really back the line up. > > >> "Our customers have helped lead us to where we are today," Gass said. > >> "They want their beverage in under three minutes." > > -- > -- > --John > to email, dial "usenet" and validate > (was jclarke at eye bee em dot net)- Hide quoted text - > > - Show quoted text -
|
| |
Date: 09 Mar 2007 05:55:00
From: John S.
Subject: Re: Starbucks strategy unchanged after memo: exec
|
On 8, 10:28 am, Bradley B. <spama...@127.0.0.1 > wrote: > http://www.reuters.com/article/Food07/idUSN0722832020070307 > > a pertinent quote: > > On Wednesday, Gass said it was unlikely that Starbucks would ever do > away with the automatic machines. It only makes sense for a company with 13,000 coffee shops and plans to open over 2,000 new ones annually to automate as much as possible. Their success shows the large cost of training that many real baristas would probably not have much impact on sales. And manual espresso machines would slow the production line even more than the mixing of frapaccino drinks already has. Of more concern is the comment: "In the memo, Schultz warned that measures used to fuel Starbucks' rapid expansion over the last decade threatened to "commoditize" the brand. For instance, he said the introduction of automatic espresso machines had made service faster, but had removed "much of the romance and theater that was in play" with traditional espresso makers, which required baristas to pull each espresso shot themselves." I have to wonder if the CEO operates in an information vacuum. Anyone who has been in a Starbucks in the past 15 years would realize in an instant that their products have been commoditized for a long time. As with McDonalds hamburgers, it would be impossible to run a chain of 13,000 coffee outlets efficiently without a lot of the standardization that leads to coffee products becoming sterile commodities. I will continue to enjoy an espresso pulled by a barista who clearly knows what he is doing. The result is always full of flavor and aroma that does not require sugar to overcome the throat-grabbing bitterness of a starbucks product. > > "Our customers have helped lead us to where we are today," Gass said. > "They want their beverage in under three minutes."
|
| | |
Date: 10 Mar 2007 16:31:28
From: Espressopithecus (Java Man)
Subject: Re: Starbucks strategy unchanged after memo: exec
|
In article <1173448500.362711.314680@s48g2000cws.googlegroups.com >, hjsjms@cs.com says... > I have to wonder if the CEO operates in an information vacuum. Anyone > who has been in a Starbucks in the past 15 years would realize in an > instant that their products have been commoditized for a long time. > When Schultz warns about the possibility of commoditizing the brand, I'm pretty sure he means eroding the company's ability to charge premium prices because the stores and products have the Starbucks name on them. From that perspective, the products have not been commoditized at all. If they were, people would not be willing to pay premium prices for the product -- yet hundreds of millions around the world currently pony up premium prices every day. That is the power of the brand -- people are willing to pay a premium because of the label, not because of the intrinsic quality of the product itself. Rick
|
| | |
Date: 09 Mar 2007 09:46:41
From: J. Clarke
Subject: Re: Starbucks strategy unchanged after memo: exec
|
John S. wrote: > On 8, 10:28 am, Bradley B. <spama...@127.0.0.1> wrote: >> http://www.reuters.com/article/Food07/idUSN0722832020070307 >> >> a pertinent quote: >> >> On Wednesday, Gass said it was unlikely that Starbucks would ever do >> away with the automatic machines. > > It only makes sense for a company with 13,000 coffee shops and plans > to open over 2,000 new ones annually to automate as much as possible. > Their success shows the large cost of training that many real baristas > would probably not have much impact on sales. And manual espresso > machines would slow the production line even more than the mixing of > frapaccino drinks already has. > > Of more concern is the comment: "In the memo, Schultz warned that > measures used to fuel Starbucks' rapid expansion over the last decade > threatened to "commoditize" the brand. > > For instance, he said the introduction of automatic espresso machines > had made service faster, but had removed "much of the romance and > theater that was in play" with traditional espresso makers, which > required baristas to pull each espresso shot themselves." > > I have to wonder if the CEO operates in an information vacuum. Anyone > who has been in a Starbucks in the past 15 years would realize in an > instant that their products have been commoditized for a long time. > As with McDonalds hamburgers, it would be impossible to run a chain of > 13,000 coffee outlets efficiently without a lot of the standardization > that leads to coffee products becoming sterile commodities. > > I will continue to enjoy an espresso pulled by a barista who clearly > knows what he is doing. The result is always full of flavor and aroma > that does not require sugar to overcome the throat-grabbing bitterness > of a starbucks product. The problem is _finding_ such a barista if you live in one of the coffee-impoverished regions of the world. >> "Our customers have helped lead us to where we are today," Gass said. >> "They want their beverage in under three minutes." -- -- --John to email, dial "usenet" and validate (was jclarke at eye bee em dot net)
|
| |
Date: 09 Mar 2007 04:42:17
From: Omniryx@gmail.com
Subject: Re: Starbucks strategy unchanged after memo: exec
|
On 8, 11:40 am, notbob <not...@nothome.com > wrote: > The superautos have definitely provided *$ with a consistently decent > product. A four state sampling proved this to me. When they still > had LMs, the chances of getting even a tolerable double shot were slim > to none. I'm with you. If I have to drink coffee at Starby's, I'd rather have consistently mediocre stuff from a super than absolutely lousy stuff from an LM with a student pilot.
|
| |
Date: 08 Mar 2007 10:54:22
From: J. Clarke
Subject: Re: Starbucks strategy unchanged after memo: exec
|
Bradley B. wrote: > http://www.reuters.com/article/Food07/idUSN0722832020070307 > > > a pertinent quote: > > On Wednesday, Gass said it was unlikely that Starbucks would ever do > away with the automatic machines. > > "Our customers have helped lead us to where we are today," Gass said. > "They want their beverage in under three minutes." One does wonder if he has ever once in his life pulled a shot himself. -- -- --John to email, dial "usenet" and validate (was jclarke at eye bee em dot net)
|
| | |
Date: 08 Mar 2007 16:25:04
From: Robert Harmon
Subject: Re: Starbucks strategy unchanged after memo: exec
|
Howdy John! What's that have to do with anything? I know a guy who owns one of the most successful restaurants in DC & he can't boil an egg. But he knows what he likes & he knows how to translate that into a menu his customers love. Would it make sense for *$ to strive for that perfect shot only to have their customers tell them it tastes like crap, because that's exactly what happens when you offer great espresso to most folks. I know because it happens all the time here at Casa Harmon, or at least whenever I try to educate the pallets of visitors by serving my best home roasted coffee, drawn into a 2 oz demitasse. *$'s customers want what they know, not what they're paying for. *$'s would be very foolish to change the formula of their success as long as the customer, who we know is 'always' right, keeps plopping their cash on the counter. -- Robert (If it ain't broke, don't fix it!) Harmon http://tinyurl.com/pou2y http://tinyurl.com/psfob http://tinyurl.com/fkd6r "J. Clarke" <jclarke.usenet@cox.net > wrote in message news:espbus01ebh@news3.newsguy.com... > > One does wonder if he has ever once in his life pulled a shot himself. > -- > --John
|
| | | |
Date: 10 Mar 2007 13:43:00
From: Natalie Drest
Subject: Re: Starbucks strategy unchanged after memo: exec
|
"Robert Harmon" <r_h_harmon@Zhotmail.com > wrote in message news:ANWHh.10451$Jl.4707@newsread3.news.pas.earthlink.net... > ... whenever I try to educate the pallets... While you're educating your guests on the finer points of efficient warehouse storage, why not educate their palates as well by offering them a fine coffee-based beverage? ;-)
|
| | | | |
Date: 10 Mar 2007 03:36:02
From: Robert Harmon
Subject: Re: Starbucks strategy unchanged after memo: exec
|
Busted! But, if I was perfect why in the hell would I hang around in this group? -- Robert (Gig 'em!) Harmon http://tinyurl.com/pou2y http://tinyurl.com/psfob http://tinyurl.com/fkd6r "Natalie Drest" <fugeddaboudit@notarealemailaddress.net > wrote in message news:45f21a40@dnews.tpgi.com.au... > > "Robert Harmon" <r_h_harmon@Zhotmail.com> wrote in message > news:ANWHh.10451$Jl.4707@newsread3.news.pas.earthlink.net... >> ... whenever I try to educate the pallets... > > While you're educating your guests on the finer points of efficient > warehouse storage, why not educate their palates as well by offering them > a fine coffee-based beverage? > > ;-) >
|
| | | |
Date: 08 Mar 2007 10:40:51
From: notbob
Subject: Re: Starbucks strategy unchanged after memo: exec
|
On 2007-03-08, Robert Harmon <r_h_harmon@Zhotmail.com > wrote: > Would it make sense for *$ to strive for that perfect shot only to have > their customers tell them it tastes like crap..... The superautos have definitely provided *$ with a consistently decent product. A four state sampling proved this to me. When they still had LMs, the chances of getting even a tolerable double shot were slim to none. nb
|
|