Starbucks News

Starbucks a Great Testing Ground for Grocery Sales

When Starbucks introduces a product into grocery stores it already knows whether the item can generate repeat purchases because it has first tested those items in its own stores. Does Starbucks have an advantage over other food and beverage brands when it comes to new product launches in grocery stores?

Starbucks Markets Seattle’s Best for ‘Regular People’

In response to heightened fast-food competition, Starbucks is re-branding Seattle’s Best and moving quickly to expand the coffee brand to convenience stores, drive-through kiosks, coffee carts, vending machines and mobile trucks. What do you think of Starbucks’ mass-market rollout of Seattle’s Best?

Howard the Merchant Helps Revive Starbucks

Howard Schultz to the rescue. That’s the current picture of Starbucks’ CEO, who stepped back in to run the company in January 2008 after watching the chain struggling with same-store sales declines and fumbling to find its way. Do you agree that Starbucks has transformed itself in the past three years?

BrainTrust Query: Lessons From the Starbucks Turnaround

Who would have wanted to be in Starbucks’ shoes a year ago? McDonald’s had launched low priced alternatives, the economy had stalled and consumers were balking at spending $4 per drink…. Fast forward a year later. What do you think of My Starbucks Idea?

Starbucks Marketing Via Taste Tests: Crazy Like A Fox

This week Starbucks’ Via instant coffee arrived and the chain is expecting 10 million consumers to visit its 7,500 company-run cafes to participate in a taste test this weekend. What do you think of Starbucks tying the launch of Via instant coffee to its stores?

Stop & Shop and Giant Closing Starbucks Kiosks

Stop & Shop and Giant Food have decided to shut down just under half of the Starbucks’ kiosks in the respective chains’ stores. Are coffee shops or kiosks in stores as big a deal as they were a few years back when Starbucks and other premium coffee brands were at the peak of popularity?

Free Wi-Fi But Coffee Shops Limit Access for Laptop Users

The customer experience touted by Starbucks and others that gave them a competitive point of difference from other establishments selling coffee was that they provided free Wi-Fi access. Are coffee shops shooting themselves in the foot by preventing laptop use?

Name That Starbucks

According to a report by The Seattle Times, the coffee giant is opening three stores in the Seattle area with nary a mention of Starbucks in the store or on product packaging. What do you think about Starbucks’ attempt to present “a community personality” with its new store test?

Restaurants Find Their Way to Supermarket Aisles

While branded product was used largely in the past as a marketing tool, supermarket placement is now being counted on as an additional revenue stream at a time when restaurant traffic is down. Do you expect to see more restaurant brands on grocer’s shelves in the future?

Starbucks Rolling Out Instant Coffee

Instant coffee is for amateurs, right? Don’t real coffee drinkers grind the beans from fresh and go to the coffee pot or preferably the French press from there? Starbucks is rolling out a soluble (see: instant) coffee under the Via brand name. Will entry into the instant coffee category dilute the Starbucks’ brand or is it the right product for current economic times?

Starbucks Takes on the Egg McMuffin

While Starbucks last week announced another round of job cuts, a bigger surprise to many was that the upscale coffee chain was entering the breakfast value-meal race. Using uniform national pricing, Starbucks in March will begin offering “several breakfast pairings” at “attractive price points.” What do you think of Starbucks’ plans to offer value breakfast deals?

Starbucks and McD’s Should Cut the Coveting Out

Okay, there are no neighbors’ spouses involved here but Starbucks and McDonald’s are committing a business sin of the highest degree by coveting something that each has little to no chance of making their own. Are Starbucks and McDonald’s on the right track with their breakfast and coffee strategies? Is the problem, if you agree there is one for either chain, in the premise or the execution?

Starbucks Takes Step Back to Move Forward

Starbucks had previously announced it would slow the pace of new store openings in the U.S. and now the coffee giant has announced plans to shutter 600 underperforming stores this summer. Will Starbucks’ store closings along with the other moves the company has made this year reinvigorate the business or will it still be searching for answers in the year ahead?

Starbucks Expected to Play Loyalty Card

About the biggest news that could come out of Starbucks’ annual shareholders’ meeting today would be if the company didn’t introduce a new loyalty program using its prepaid Starbucks Card. What are the keys for Starbucks or any other company to make a loyalty card program work? How do you think Starbucks could best use its card to create a more meaningful relationship with the company’s customers?

Starbucks Trains, Rivals Seek to Gain

Customers walking into any of the nearly 7,100 Starbucks across the U.S. today will be greeted with a sign that reads: “Your drink should be perfect, every time. If not, let us know and we’ll make it right.” That message follows a training session that took place yesterday shutting down every Starbucks for a three-and-a-half hour period. What do you think came out of the training session yesterday for Starbucks and its competitors? Will consumers have a more positive view of Starbucks as a result of the highly publicized event?

Donald Out, Schultz Back In at Starbucks

Starbucks is facing some challenges as it moves ahead and the company has made the decision that the best person to lead it into that uncertain future is the same man who originally grew the company. Howard Schultz was named to return to the position of chief executive of Starbucks, succeeding Jim Donald who is leaving the company. What do you see as the root causes behind the challenges faced by Starbucks over the past year? Is Howard Schultz the right person to lead the company at this time?

The Year of the Gift Card

For many consumers, this holiday season’s most popular present was the gift card. According to a survey by NPD Group, 61 percent of consumers planned to give the cards this year compared with 32 percent a year ago. How do you think gift cards are changing the Holiday season? Given their growing popularity, how should retailers be reevaluating their merchandising, promotional and inventory positions around the holiday season?

CSD: Star’buck’-ing the System

It’s no secret that c-stores have “borrowed” ideas from outside channels. Thanks to Starbucks, c-store operators learned that customers would pay $4 for a cup of coffee as long as it was a high-end brew. So it should come as no surprise that drug stores, fast-food chains and, yes, Starbucks are keeping a close eye on the convenience channel for the same reasons…. Do you think c-stores are losing their edge as other stores and food-service chains increasingly play up convenience and lunchtime offerings?

Has Starbucks Lost Its Soul?

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….” Has Starbucks lost its soul?

Starbucks Puts Breakfast Strategy Into Drive

Starbucks helps a lot of consumers get their mornings jump-started with its coffee and now the chain is looking to drive some incremental business with its breakfast sandwich lineup. Beginning today, Starbucks will sell its line of breakfast and lunch sandwiches at stores located in Boston and elsewhere in New England. It will also introduce the sandwiches at some shops in Los Angeles. Do you see the breakfast segment at foodservice heating up as operators such as Starbucks and Wendy’s begin to make a big push for share of stomach?

Starbucks Makes a ‘Lifestyle’ Move

There’s something going on in Chicago and we’re not talking about the Bears. Starbucks is taking its baristas and beans and leaving Jewel. At the same time, the coffee chain is moving ahead with opening more of its cafes in Safeway-owned Dominick’s Finer Foods. What impact will Starbucks pulling out of Jewel have on the competitive situation in Chicago?

Customers Reload and Starbucks Takes Off

The Starbucks card isn’t your typical loyalty card. For one thing, the people who use it appear to be genuinely loyal customers of the coffee chain as evidenced by the fact that they keep using it without the promise of any privileged savings. How have gift cards changed the retailing business in the lead up to the Christmas holiday and after?

Starbucks Outsources IT Functions

Earlier this week, Starbucks joined those going the outsourcing route when it entered into a deal that will have Unisys take over a large number of IT functions for the company in its retail stores, regional support centers and manufacturing facilities. Where do you fall in the outsourcing versus in-house management question?

Gas Putting the Brakes on Upscale Consumer Purchases

According to a Wall Street Journal article, retailers such as Starbucks, Whole Food, Williams-Sonoma and Panera Bread Co. have turned in disappointing sales numbers and “the chief culprit is gasoline prices.” Many strong retailers have reported softer sales in recent weeks/months and/or lowered expectations for the future. What have retailers done in the past to come through slower economic periods to become stronger competitors when consumer spending rebounds?

Starbucks, Whole Foods Are Incomparable

When most companies in retail discuss their employee wage and benefit programs, they talk in terms of offering packages that are comparable to what others in the industry are doing. For companies such as Starbucks, Whole Foods and others, comparable is not enough. Will retailers need to find more (perhaps expensive) ways to attract and retain employees if they wish to remain successful in the future?

Starbucks Gets an Agent

There’s no doubt about it. Starbucks has definitely gone Hollywood. The coffee chain announced yesterday that it had authorized the Hollywood talent agency, William Morris, to help it identify film, music and book projects for distribution through its stores. What is your reaction to Starbucks hiring the William Morris Agency to help it find entertainment projects to market?

The Battle of Bean Town

When Dunkin’ Donuts at 715 Boylston Street in Boston found out about Starbucks’ promotion to give away free cups of coffee between 10:00 a.m. and noon today, it quickly shifted into gear to come up with a response. What it came up with was free samples of its Turbo Hot coffee and free cab rides for customers in downtown Boston in five bright pink Dunkin’ Donuts Turbo Hot Taxis. What are your thoughts on the Starbucks “National Coffee Break” promotion and Dunkin’s Donuts’ response in Boston?

Starbucks Serves Up Hot Breakfast

Turnabout is fair play. Others, from convenience stores to Dunkin’ Donuts to McDonald’s, are gunning for Starbucks’ coffee business, so why shouldn’t it try to grab some of the hot breakfast sandwich market it has been missing out on for years? The company announced it would expand the current number of stores testing breakfast sandwiches from 250 to 600 by October of this year. What impact do you think Starbucks will have on the breakfast sandwich market?

Starbucks Looks to Do Big Box-Office

Now that Starbucks has conquered the music business, the coffee chain has decided to take on motion pictures. The company announced yesterday that it had signed a deal with Lions Gate Films to promote its movies and sell soundtrack CDs and DVDs in its shops. What will tie-ins with films such as “Akeelah and the Bee” do for customers’ experience of Starbucks?

Starbucks Finds Doing the Right Thing is Hard

Starbucks’ Howard Schultz says even companies such as his that are trying to do the right thing by offering healthcare coverage to employees have come to the conclusion they simply cannot keep it up. The coffee chain has seen its insurance costs increase in the double-digits for four straight years and the escalating costs are not something it or any other company could continue to sustain. Do you agree with Howard Schultz that businesses can no longer sustain the annual increases they are seeing related to employee healthcare?

Starbucks Pushes Latte and Homosexual Agenda

Starbucks was looking to get people talking with its “The Way I See it” promotion. It worked. The promotion includes quotes from a number of well-known (to varying degrees) Americans on a variety of subjects imprinted on Starbucks’ cups. One particular quote has the Concerned Women for America (CWA) citing it as proof that Starbucks supports the homosexual lifestyle. The CWA suggests that Starbucks and other companies should either stay away from controversial subjects such as homosexuality and abortion or take a balanced approach where opposing sides are represented and/or receive corporate contributions. Do you agree with this position?

Loyalty Means Saying You’re Sorry

A Starbucks Sumatra coffee email promotion was ill timed in light of the devastation the Tsunami caused that island. The willingness of Starbucks to step up and quickly apologize stands out as an exception. They were wrong, though unintentionally, and they were quick to admit it. How often do you get an apology from a company? When you receive a sincere one, how does it make you feel about that company?

We Don’t Talk Anymore

Sociologists and others are concerned that the modern reliance on technology-based self-service is eroding people’s ability to communicate with one another. Others say less idle chatter and unpleasant experiences with inept or surly service people, frees us up for more quality communication time with those who matter most. Generally speaking, has automation improved or deteriorated the level of customer service we receive?

Starbucks’ Latest Genius Move

When Ray Charles’ recorded his last album before he died, “Genius Loves Company,” do you think he knew the songs would speak so directly to the retailers selling his collection of duets? Now, Starbucks is not only riding a wave of new product introductions and store openings to record results, it can now claim to be a force in music retailing. How will Starbucks’ success with “Genius Loves Company” affect: 1) its own business and 2) music retailing as a whole?

Starbucks Fills Up Recycled Paper Cups

Starbucks plans to use coffee cups with 10 percent recycled material in a step the company hopes will win it points with its environmentally concerned customers. Is Starbucks commitment to the environment a positive for the business? Does the criticism by some that the company is not really a steward of the environment represent a threat to Starbucks’ reputation and future growth?

Starbucks Comes Up With Another New Drink

Starbucks is hoping to hit gold again with it newest new thing, a non-coffee drink named after an Aztec goddess and described as a drinkable dessert. Why has Starbucks been so successful with its new product rollouts?

Starbucks Serves Up Steeper Prices

Beginning on Oct. 6, Starbucks’ customers can expect to pay an average of 11 cents more for their favorite coffee beverage. Will Starbucks price increase impact its business? At what point will consumers begin to question whether it makes sense to spend $2.62 for a 12-ounce latte?

Starbucks’ Punished For Same-Store Sales Growth

The insanity that is Wall Street was on full display yesterday, although nary a white coat was to be seen, as Starbucks’s saw its share prices drop 6.5 percent on the disturbing news its same-store sales in August grew eight percent. Would Starbucks be better off taking itself private? How do companies such as Starbucks protect themselves from market timers and investors mood swings?

Magic Takes Starbucks Straight Into Compton

Ask most people what they think of when you mention the Los Angeles suburb of Compton and you’re likely to hear about the type of brutality and hopelessness expressed in the lyrics of rap songs such as “Straight Outta Compton” by N.W.A. However, NBA Hall of Famer Earvin “Magic” Johnson and his Johnson Development Corp. opened Compton’s first Starbucks over the weekend. What will it take for more businesses such as Starbucks to invest in communities that have previously been avoided?

How Much Will America Pay for a Cup of Joe?

Starbucks completely changed the notion of how much Americans were willing to pay for a cup of coffee. And the company is not done testing the limits just yet. According to a CBS.MarketWatch.com report, Starbucks intends to raise coffee prices an unspecified amount next year. Will price elasticity become an issue with Starbucks? How much higher can the company go with coffee and coffee-based drink prices?

Starbucks Is Target of Firebombing

A Starbucks scheduled to open in the Hosford-Abernethy neighborhood of Portland had windows broken and a Molotov cocktail thrown at it last week. The store has been at the center of protests by residents who fear the entry of a corporate giant such as Starbucks would lead to the demise of local businesses. What are your thoughts on the events in Portland?

Jim Beam Adds Kick To Starbucks Coffee

For those who define strong coffee in different terms, there will shortly be a premium coffee liqueur from Starbucks and Jim Beam on the market later this year. The still to be named product, prominently featuring the Starbucks brand, will be on sale in bars, restaurants and liquor stores. It will not be available for sale in Starbucks’ coffee shops. What are your thoughts on Starbucks and Jim Beam partnering on a coffee liqueur to leverage the equity in their respective brands?

Starbucks’ Chairman: We Underestimated Opportunity

Starbucks is growing at a rate of about 3 and a half new coffee shops a day. That probably isn’t fast enough to meet pent-up demand, says the company’s management. Does Starbucks put at risk that which makes it Starbucks with its aggressive expansion plans?

Insider Selling Raises Eyebrows

A column by Michael Brush on the MSN/Money Web site expresses concern over the number of top execs at specialty retailers who have been selling off shares of their company stock. Does the amount of insider trader being done by retail execs give you pause for concern?

Baristas Go Back To School

Starbucks is significantly expanding its paid employee training program, says the company’s chairman, Howard Schultz. What is your reaction to Starbuck’s employee training improvements?

Starbucks Gets Into Downloadable Music Biz

Starbucks’ chairman Howard Schultz told Business Week, “This is not a test. We’re going for it.”Mr. Schultz was talking about the coffee shop chain’s decision to offer a downloadable music service in 2,500 U.S. locations over the next two years. Does Starbucks entry into the downloadable music arena represent the future of music distribution?

Juan Valdez Looks for Starbucks Fight

The Colombian Coffee Federation has decided it can not wait on others to sell its coffee so it’s going to do it on its own. The federation, representing 560,000 coffee growers in Colombia, is planning to open coffee shops in the U.S. under the Juan Valdez brand. Is the Colombian Coffee Federation headed in the right direction with its Juan Valdez coffee shops?

Starbucks Prepaid Card: The Next Generation

The next generation of the successful Starbucks prepaid card is the first to also serve as a credit card, reports USA Today. The new card, Duetto, rolling out today, allows consumers to prepay for purchases made at Starbucks while serving as a credit card in any other establishment that accepts Visa. What are your thoughts on Starbucks’ new Duetto card?

One Latte, Hold the Tax

Voters in Seattle overwhelmingly rejected a proposed tax, Initiative 77, which would have added a 10-cent levy on every cup of espresso or espresso-based coffee purchased in the city to fund child daycare for poor families. What are your thoughts on tax initiatives such as that rejected by Seattle voters?

Starbucks Banks on New Location

The Albany Times Union reports Starbucks will open a full-service shop inside a branch of a Charter One bank next month. Charter One plans to keep the branch open from six in the morning until 10 at night, the same as the Starbucks. What are your thoughts on Starbucks’ latest venture with its Charter One shops?