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Coffee shops historically have been a gathering spot for poets, artists and malcontents seeking a forum to espouse their views; which just happens to be the purpose of this community. So, let's have at it.

Starbucks hits a wall

July 6th 2008 08:38
Hey guys, good to see you.

I’ve been watching the news and following that upstart coffee shop wannabe, Starbucks. They can open more stores, hire more employees and serve more java, but they will never surpass the quirky raw sexiness of the Coffee Quip. Here’s my take on their hapless situation; help yourself to the day old donuts and some fresh coffee while I bloviate for a few minutes.


Starbucks is closing some of it’s none productive stores, about 600 of them, they have about 7,100 store in the US; but, don’t panic, there’ll still be plenty of shops for everyone to visit and patronize on the way to and from anywhere.

So what happened? The cash cow started drying out, but why. In a word: competition.

Mom and pop operations, along with major stores chains, have cut into Starbucks cash streams by opening up competing coffee kiosks which feature quality offerings for less money. That ultimately sent Starbucks back to the drawing board. So, what do you do? The only area that they could improve upon was in the quality of their service; so they opted to close stores for 3 hours for Barista Re-training back in February. I hope the caffeine addicts were able to survive that brutal blow better than the company. Apparently, this bit them in the pocket book.

So, now instead of being the fair haired child of the financial world, they’re under the gun to perform in a radically changed market. Part of the problem is their public image, beyond an icon: whose is the face and persona of Starbucks? It’s the employees, when their zeal slumps and they aren’t rewarded for encouraging sales by engaging customers, the system begins to erode.


Owners of any business can sell their products, but they can’t greet every customer personally with 7,100 stores. Disheartened employees on the service line deal directly with the customers ~ it’s their face that personalizes the business for a customer. Happy, well rewarded and engaged employees can breathe life into any business. I say, cull the lack luster employees and while you’re at it, gimme a double latte, no foam, with a cinnamon stick please. Employess raises all around and forget those top end bonuses.

Raven

Sources:
Starbucks Closures

Starbucks 3 Barista Re-training


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Comments
11 Comments. [ Add A Comment ]

Comment by Michaelie

July 6th 2008 08:46
Well, that's a good news story. Glad the scales are tipping for people rather than the big figures.

Comment by katyzzz

July 6th 2008 11:47
quirky raw sexiness


May I ask where, yes I know it's in Alaska but I've yet to see it deliver on that promise.

Is that a diabetic chocolate eclair there?

I'll have the usual Bombe Alaska for one and a hot chocolate as it's so cold here (there) to-day, Please.

Keep working on that diabetic eclair recipe,

Here's one for coffee,

Spoon out required measure of diabetic coffee, add the diabetic milk and fluff up with the diabetic cream, or if preferred black, simply use diabetic water, straight from the tap but put through the expresso machine, hell, man, anyone can do that. What's wrong wich ya?

Comment by katyzzz

July 6th 2008 11:48
Incidentally, ever thought of selling bottled diabetic water on Ebay? Bound to make a fortune.

Comment by tlcorbin

July 6th 2008 13:44
Hi Michaelie, every once in a while, good things happen for the masses . . .

Raven

Comment by tlcorbin

July 6th 2008 14:31
Hahaha, you are a clever lady katyzzz; diet diabetic bottled water at $5 a liter . . . that just might work. Yes, that eclair is sinfully rich and tasty. However, the Bombe Alaska is to die for ~ couple that to a mug of hearty hot chocolate and you'll be ruling your world for the first time that day.

Imported diet diabetic water . . . hmmmmm

Raven

Comment by katyzzz

July 7th 2008 00:04
hmmm, diabetic bottled water, the money I could die for.

Comment by tlcorbin

July 7th 2008 00:24
Provocative concept isn't it?

Comment by katyzzz

July 7th 2008 00:50
It could well sell, you know how silly people can be.

Comment by tlcorbin

July 7th 2008 00:57
hahahaha, yup. And I lead the pack.

Comment by Anonymous

July 7th 2008 02:56
I actually heard about this story at work the other day... in the break room, while I was sipping a cup of (non-starbucks) coffee. What struck me most is all the people who will be losing their jobs -- and what a horrid time this is to be losing work.

Starbucks is rather pricey, though.

Actually, I think all food/beverage industries are suffering right now. There was another article in today's paper about how bad off people working in tip-industries are doing... and I know it's true, 'cause I work in a restaraunt, for tips (Goddess knows it's not for the hourly pay! - or should I say lack of?), and my income has dropped drastically over the past three months. But that's another subject all together now, isn't it? *smiles*


Always a pleasure to have doffee with you.


Blessings,

W

Comment by tlcorbin

July 7th 2008 03:04
Lady W, it's appropriate to discuss what you will here. That is sad to learn that tips are down, but I do trust your goddess to turn things around for you in a favorable manner.

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