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Who Benefits Most From Starbucks Closure?
What Do You Think Will Come of This PR Frenzy?
Starbucks is closing its door from 5:30 p.m. to 9 p.m. this evening for a little bit of continuing education for itsAccording to Howard Schultz, "The comprehensive educational curriculum for all U.S. store partners will provide a renewed focus on espresso standards that will help ensure the exceptional quality of every beverage." Will it matter?
Obviously, the move is meant to prove that Schultz was serious when wanted to remedy perceived ills at the chain. Many long-time fans had been complaining about a drop in quality. It's questionable whether a three-and-a-half hour training session is actually going to improve the skillset of Starbucks employees, but you can bet 20 Duetto Dollars that there will be people sauntering into your office tomorrow swearing that their espresso tastes soooo much better than it did two days ago.
In my opinion, it's a brilliant marketing stunt (but mine isn't the only opinion). And if anyone takes offense at this being called a stunt rather than a concerted effort to retrain employees, tough. As someone in the office pointed out, Starbucks ain't exactly open 24 hours a day, so some post-closing or pre-opening training could have been in order. Do it over a span of a few weeks after close and take the time to focus on things that really matter. But hey, this not only gets the chain a load of free press, it probably makes for slightly happier employees.
It could also make for temporarily happier competitors. Dunkin Donuts jumped at the chance to offer discount java. But it's not just offering coffee. It's offering discounts in the area it most lags behind Starbucks -- specialty drinks. The discounted beverages include "lattes, cappuccinos and espresso drinks."
Biggby Coffee, the Michigan chain formerly known as Beaners, is one-upping Dunkin' Donuts by offering its coffee completely free during the Starbucks Blackout.
But as I said, mine isn't the only opinion on this matter. One dissenter in the office dubs the move stupid: "It fesses up to problems with the Starbucks experience, which can be a good thing. But any one who's spent any time wasting away in 15-minute lines for coffee, watching in horror at the collective incompetence, inefficiency and, often, rudeness of the baristas will know that that training session alone won't do much to fix things. So it seems like an empty stunt and one that any number of rivals are piggybacking on."
So what do our readers think? (And if any of you Power150 bloggers want to stop blogging about Facebook and twitter and blogs long enough to consider this topic, let me know!)
Is this a smart move? Will it be better for Starbucks or better for competitors?
UPDATE! Some Power 150 Reaction: Todd Andrlik says Dunkin Donuts move "brilliant"; AdFreak's David Gianatasio manages to survive the outage; Larissa Fair at The Buzz Bin wonders if it's too little, too late but adds that it's "just good PR"; Andy Sernovitz wonders what you'd do; George Parker says it's the biggest scam since Second Life and proceeds to curse up a storm (which is why we love him).
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like mcdonald's, people are addicted to mediocrity
The training better be pretty stellar and big upgrade of materials and processes because at $4 a pop, that coffee better taste pretty damn good already.
Starbucks could easily have staggered the training so I agree, this is undoubtedly a PR stunt. Plenty of blogs are talking about it already ie the Starbucks brand and there will undoubtedly be plenty of media coverage both local and national.
It's very well possible that the current and past Starbucks customers that have found themselves checking out the java offering at Dunkin Donuts may just be reminded though the publicity of a stunt like this of that warm fuzzy Starbucks feeling and swing on back.
Can't believe the media picked this one up. Good for Starbucks for pulling off this silly PR stunt! Katie in Chapel Hill, NC
Also get rid of the disgusting asndwiches already! The long gone smell of roasted coffee which gave Starbucks that coffee house feel has been over powered by greasy bacon and cheese. Walk into any Dunkin Donuts and you aren't overpowered by their breakfast sandwiches! Starbucks has a long way to go to turn things around and its going to take much more than a 3 hour training session.
It's not that difficult. Keep it simple stupid Starbucks- serve coffee and baked good that can be grabbed from the case. Clean up the sugar/milk bar every other hour and that would be a good start!
I basically use Starbucks only when I want to have a quick coffee with someone and don't want to use my office, but that's about it.
I find the entire experience really annoying, from the need to learn another language (I already speak four, thank you very much) to order a small coffee to the religious, trance-like looks from the lined up yuppies.
the best production outlet ! In Michigan there are upscale small super markets that serve great coffee at an excellent price ! Branding has produced the Starbucks Hood Wink!
I am curious about the comments, why are the responses from professionals not discussing the merits of Public Relations instead of assigning it the "stunt" stigma.
Clearly this was PR at its best, unpaid media attention that received the attention of the world. The CEO appears to be as powerful as the President of the United States, and more popular too. I would be curious to know if this was a Public Relations Promotion, who initiated it – internal public relations or an external PR Agency? I would also liked to have seen a link to the Press Release.
There is a current debate among PR Professionals about the function and structure of public relations organizations. Many believe that the Public Relations function is an integral part of management where the internal PR VP/Dir coordinates efforts such as this with external agencies and focuses primarily on overall corporate communication. I'd like to know which this was, internal or an external agency? It could all be as simple as a Press Release to announce a management strategy, and not a promotional event, designed to communicate to all of its publics.
Whatever it was, and whoever did it, this was a stellar example of the power of public relations. It was Starbucks most impressive public relations initiative that got all media involved and talking, and a positive brand-building effort instead of the more negative messages coming out in the recent past.
What was missing was a follow-up promotion, perhaps offering free cookies to current, returning, and new consumers? And perhaps the advertising agency should look at this PR event as a creative strategy – Discover the Starbucks Experience Again? I despised the animal cartoons – ditsy, and a poor branding effort, compare it to this PR event. Is Starbucks' CEO back to his 'no advertising mantra?' P.S. I personally don't drink coffee, I opted for the healthier green tea. All those black juices go somewhere, and I noticed it was not in my urn. Now my breath is sweeter, my shirts whiter, and I am happy I made the switch. Does SB do green teas?
They may have benefitted more from a thorough top to bottom cleaning of all their stores...and perhaps a little training on how to keep the coffee condiment bars cleaner?
This morning there was the usual line snaking out the door; no cream (I again today-as I did yesterday-played the role of enabler to their underperforming employees: 1. notified the busy barista that there was no creame 2. carried him the empties 3.took the fresh ones out for my comrades and I to utilize 4. wiped up the disaster left behind by uncivilized customers who came before us)
So, I paid a premium and felt as if I had just gotten gas at a self serve station, with coffee as an afterthought! The asthetics of this particular store are one step removed from that of the subway. All that is missing is that special subway aroma.
Why do I keep buying their coffee? For me it is the taste! Until competitors can match their flavor(I am talking about Drip only)....Starbucks will prevail and my guess...nothing much will change in anytime soon.
j
The drop in quality (well, at least one of the reasons) is due to the replacement of the old fashioned do-it-yourself espresso machines for the new all I have to do is push a button espresso machine.
When these first rolled out it was thought that it would standardize quality across all stores, however, the machine itself was unable to produce a "quality" espresso shot by Starbucks standards.
A quality shot of espresso takes anywhere from 17-23 seconds. The shorter the time, the sweeter the shot, the longer the time the more bitter. These new machines pulled shots around 15 seconds, making for less strong espresso.
Without reverting to the old fashioned (of my, the Barista's actually have to do something!) machines, the quality will never return to normal.
By the way, an earlier blogger said the beans are burnt. This is incorrect. Yes, Starbucks roasts their beans for longer than the average coffee producer. This does not occur in the grinder, but rather during the roasting process.
If you don't care for "burnt" tasting beans, try one of the many Mild or Organic varieties. Or better yet, go buy it elsewhere...there are other options.
. Getting a cup of coffee at Starbucks only offers me to see how the expresso is made and how the ingredients are mixed.
Should I dedicate a few minutes every day and pay premium price to witness Starbucks routine?
I don't think so!
And rude baristas according to some of the comments below, I think that may depend on where you live. In Scottsdale, you can't find a rude one if you try!
I say good for Starbucks for trying to improve their product and "keeping it real" as Randy Jackson would say.
Closing 7,100 stores at the same time across the country clearly signaled huge opportunity for the competition.
Dunkin seized the moment to give loyal Starbuckians a taste of their equally tasty coffee and make them realize that, in a recession, people can have their luxury coffee for half the price of Starbucks.
However, while I personally prefer the taste and price of Dunkin's coffee, they still can't compete with the Starbucks atmosphere. If I want to chill out for an hour or two while browsing the web on my lap top, I'm not going to sit in a Dunkin Donuts or McDonald's. No, I'll pay $5 for a venti non-fat vanilla latte at Starbucks.
Nice post, Ken.
This past sunday a competitor had an article written about them in Projo, (providence journal), yet mycompany gained new customers from a blurb mentioning!
The company actually exerts quite a noteworthy effort to try to maintain the highest quality standards and provide excellent service. It's written in the corporate creed that is drilled into the heads of every new hire in a cult-like training program. Unfortunately, all fast-food is plagued by the lazy-worker syndrome, and from this outsider's observations, Starbucks does more than the average fast food bear to address the issue. Such is the plight of the franchise... pre-digested models for financial success in exchange for liberated management who can hire and fire as they see fit.
PS - According to my inside information, baristas are now supposed to ask every customer to take a sip of their drink, and if they are dissatisfied, re-make the beverage. Put your barista to the test!
Consistent and on-going training -- starting by moving the "big rocks" like cleanliness and attitude -- can go a long way to an improved experience.
That won't remedy the fact the Starbucks is now facing increased competition from serious national/multi-national players for the first time. Ask the automakers what happens when your pie gets cut into more pieces.
I agree it was a PR/media stunt. And it may have even been some intense brand reinforcement to show consumers that "hey it does taste better on Wed a.m.!" or to make drinkers remember that absence makes the caffine addiction grow fonder.
But I will be interested when some anon barista posts what went on during the training. As another poster commented, these employees have been so systemized that surely they know how the machines work. I would hope that some time during the great 2008 blackout (or cream&sugar-out) was spent on customer relationship training.
Just yesterday, two of my collegues had a discussion of SBUX baristas arguing with them about how they wanted their over priced cuppajoe
BTW -- I'm a Power 150 blogger (Shotgun Marketing) who has fallen from grace. (started at #49 - currently hovering around #200). Look further down the list for bloggers who aren't trying to game the ranking systems or who weren't already a-listers and you'll find some non facebook-twitter-blog talk and actually find marketing commentary!
[Full disclosure: we work with Caribou]
Phil Rubin, Atlanta, GA
But will it make the coffee taste good? No. They lost that game to Peet's a long time ago. And they moved farther from good when they went to automatic espresso machines.
Also, while maybe in the short term Dunkin Donuts, etc. may have benefited from the closing, I don't think they'll be stealing any customers for the long term. Starbucks really is more than coffee--it a status symbol.
Time will tell if this is a true attempt to turn things around or simply a "publicity stunt". As far as PR goes - did it get people talking yes it did- but the jury is still out whether this will be good or bad press for the company ultimately.
Schultz is on the right track, but they're only halfway there. The long and short of the super-secret meeting was that we are going to be de-emphasizing the "get in/pay/get drink/get out" flow and concentrate more on quality and customer interaction. If you're late for that meeting and you're at a busy Starbucks, you might be frustrated with the wait. The "training" sessions were a complete joke - nothing I haven't heard before, but the sad truth was that about half of the employees at my store were learning something new. Almost everyone is a college student like me, just like at most other Starbucks, and I really attribute this to their drop in quality. I'm sure you can guess that most college kids don't give two sh*ts about your lives or your problem, and most don't give a damn about how good your latte is. Obviously it's different everywhere you go, but the adults at the stores are always the best employees, and the ones that we (students) hate working with the most.
The thing is, nothing is really changing. We're not getting the old machines back - the espresso shots will still be sub-par. The sandwiches will be gone, but the ovens will still be running, and it still won't smell as good as is once did. Wi-Fi is still not free. I'm sure Schultz is aware of these things, but the amount of money required to re-replace all the machines and everything AGAIN is massive. I don't really know what's going to happen.
"Ha ha" to "Christine" whining about how the employee on break wouldn't come help with a line. Given that you're from New Canaan, I'm going to assume that like the rest of your area, you believe that the world revolves around yourself. I'm sure you didn't consider that barista had probably been dealing with a line of the same length for the entire shift, but I guess that line wasn't as important, because YOU weren't in it, right? Please. 10-minute breaks are mandatory about every 2 hours, whether there's 1 person in line or 100. If you'd ever worked in retail or service I'm sure you'd appreciate that break in the avalanche of customers.
I think Dunkin Donuts as a company earned my praise for reacting quickly, making the situation sound funny and respect for reducing the price instead of rasing it.
To me a Cup of coffee is a cup of coffee no matter where I drink it ( see my post on Starbucks ordering here http://eatcurry.blogspot.com/2008/01/what-do-you-order-at-starbucks.html)
Shashi
Regarding their "marketing stunt" I think that Starbucks aficianados will pay it no mind and will be lined up before work tomorrow morning waiting for their double skinny caramel latte. I agree with Shashi on one thing, I applaud Dunkin' Donuts for jumping on the bandwagon so quickly.
Probably most of the "baristas" at this coffee conglomerate, are not really that invested in their brand. For most I'm guessing it's just another job schmob. They will probably put in their 3.5 and let the "training" go in one ear and out the other.
Starbucks, good luck with the stunt...
SS-Manhattan Beach
I'm sure Starbucks and Dunkin Donuts are glad to have such astute people handling their business.
If the post bothers people such as you and Susan Steel so much, I have a suggestion ... quit reading it and move onto something else rather than wasting your time and ours with comments that add nothing to the discussion. And if you're going to be a crank in the Adages portion of our site, you could at least be a FUNNY crank.
Thanks. And have a nice day!
Maybe you are right. I didn't realize that ANYBODY cared about coffee so much.
Marketing-wise, while employee training was certainly the initial point, obviously the media blitz by Starbucks here was intended to reinforce the company's renewed focus on the one word they own in the minds of just about everyone: "Coffee". So it was brilliant. Of course, it won't last. Howard will inevitably lose focus again and think Starbucks is a lifestyle brand (like his idiotic remarks a couple years ago that they'd be going into the furniture business, sending their stock reeling until a retraction) or that the brand can mean something besides coffee (like his failed foray into ice cream flavors beyond "coffee", and the whole music thing where he confused the fact that Starbucks locations/demos make them great music distribution outlets to mean that Starbucks was an entertainment brand). Suffice to say, it likely was a savvy, fearless outside consultant (positioning gurus Jack Trout or Al Ries come to mind) who got Howard back on track here with "coffee" as the brand, but I'll give it 6 months before he listens to some new self-described "branding expert" who panders to his ego and leads him astray again.
So Starbucks announced today that they'd be shutting down all their stores for three hours today so that they can "re-educate" their baristas in the "art of espresso" and otherwise get their mojo back.
It's a clever move for Starbucks, sure to generate a whole lot of press and it shows that they are committed to improving their product and service in a way that rings a lot truer and more authentic than any ad campaign ever could.
As if to ensure that the event gets even more press, rival Dunkin' Donuts is promoting 99 cent drinks today, the synergy of the two events should prove too good for most editors to pass up.
There's also this quote from Schultz:
We are passionate about our coffee. And we will revisit our standards of quality that are the foundation for the trust that our customers have in our coffee and in all of us.
And while some may question the wisdom of putting your shortcomings on display, I think it's the perfect strategy for a brand like Starbucks, a brand consumers view as very focused on product and experience. The "re-education" seems authentic to them, whereas if say Dunkin' Donuts had done it, it would have seemed forced.
There is no doubt that the Starbucks closures were a PR stunt... and one that was brilliantly pulled off as proven by the number of news outlets that ran with the story as well as the number of respondents to this story.
The simple fact is that Starbucks isn't just about coffee, it's a destination. And with destination marketing, you need press.
Sure, some people will bitch and moan about the stores but if you look to the average drinker, they are sold. My own parents, in their 70s now, are from the old era of stewed coffee and yet they still enjoy visiting Starbucks from time to time. These are people who at one time would have railed against paying such exorbitant prices for a simple cup-a-joe.
Maybe Starbucks lost its way a bit when branching out into various non-coffee products, but people still see it as 'a place to go for a good cup of coffee.' The latest PR stunt will only help to remind them of that the next time they are trying to decide what to do kill a little time or where to go when meeting some friends.
If you're gonna write articles that some people think are trite, I suggest you simply either 1. let it go or 2. appreciate the difference of opinion.
When you reply with a bunch of !!, it makes you seem juvenile. -AB