Howard Schultz is concerned that Starbucks has lost its soul and is asking everyone who works for the company to remember those attributes and practices that made the company great.
In an memo from Feb. 14, as reported by The Seattle Times, Mr. Schultz wrote that unnamed people are calling the company's stores "sterile, cookie cutter, no longer reflecting the passion our partners feel about our coffee. In fact, I am not sure people today even know we are roasting coffee... we desperately need to look into the mirror and realize it's time to get back to the core and make the changes necessary to evoke the heritage, the tradition, and the passion that we all have for the true Starbucks experience."
The issue as identified by Mr. Schultz is spot on, according to some within the company. The problem, as many see it, stems from two areas. First, the company has altered how it produces drinks in stores. The example given was Starbucks' switch to automated espresso machines in 1999 and the change to keep beans in flavor-locked packages instead of inside bins.
The other more critical issue, some say, are the levels of middle management in the company that have resulted in a communication cutoff between baristas in stores and executives such as Mr. Schultz and company CEO and president Jim Donald.
The managers are so focused on sales and expenses that some call several times a day to find out how a certain beverage is moving or why a given employee worked an extra hour.
"A lot of people they've brought into the company think they know what the Starbucks experience is, but what they're bringing are the tactics and types of business that they came from," said a five-year store manager who asked The Seattle Times not to divulge his identity.
The focus on keeping hours down has had some unintended negative consequences. Some have complained in online forums and in interviews that cutting hours (and costs) means that baristas coming to work for the company today have less time to learn their about coffee and their trade.
The company's attempt to diversify its product offerings to areas such as food, some employees have said, is also leading Starbucks away from its coffee heritage.
"When you add the sandwich," a manager said, "God only knows what else we're going to get."
Discussion Questions: Has Starbucks lost its soul? What are your thoughts on some of the criticisms expressed in The Seattle Times piece such as cookie-cutter stores, less frequent updating/remodeling, too much middle management, reduced time for training and customer interaction, hiring practices, etc.?