Dear Starbucks shareholders, Howard Schultz, and anyone else who may be listening (This means you, Pat Nerr)
I love the idea that you represent. That you can go nearly anywhere in the country, and for about 2 bucks, you can get a piping hot cup of delicious coffee, a pleasing environment, and light banter with intelligent, caring and friendly people. I love the idea of sitting in store typing doing some work, listening to music, talking, or reading.
That is what is special about your company, and worth keeping. I am a FAN of the standards that you have represented, and I think that the $2-5 bucks that you charge is a value for the feelings that you sell.
The experience is eroding quickly, and it may be too late to go back.
Nobody likes to be sold, nobody likes to be monetized. If you want to suggest and share music (or even books, or even movies) with me, that’s welcome. I enjoyed your “Bob Dylan” live at the gaslight series, and was glad to see it (even though the recording was somewhat of a disappointment). I’ve even enjoyed your “The way I see it” on your cups.
What I haven’t enjoyed is the fact that your stores are feeling more and more like a cross between Target and Ruby Tuesdays. Crap everywhere. That’s nobody’s third place.
Your employees have grown increasingly unfocused and listless, and the standards they uphold are nowhere near where they were 2 or 3 years ago, sore to store. A few things have happened recently:
- I went through the drive through, ordered bold, got mild (and no explanation), and I came into the store to ask, I was treated as if I was an idiot for coming in, and treated like all I wanted was a coupon (which i got).
- Someone slid my change across the counter. I had a pithy remark (don’t try too hard), and I got: “What, you expect me to be perky,” in a serious voice. “I don’t pay $2.50 for a coffee to be treated rudely, that’s for sure.” Not an atypical experience.
- I stopped going in to Starbucks, and started making coffee at home. I had a 4 times a week Starbucks habit. 3 out of the last 4 times, you didn’t have coffee ready. How can Starbucks have this problem? It’s easily solvable; weigh the coffee, when it’s low, have an alarm ding. Tim Horton’s seems to manage.
- Your I-tunes promotion (and why I won’t be back for a while): I went in, was asked if I like music.
“Yes, Why”
“Here’s a free Itunes card, it’s by KT Tunsall”
“No thanks, I don’t use Itunes,”
“Oh, you should take it and try it–it’s a free song.”
“I’m not going to get to it, and I don’t need the clutter.”
“Oh, well you don’t have to be snotty, you should try a new experience once and a while.”
None of this is atypical, and none of it stands out anymore, it’s about the experience people have. Starbucks has gone from friendly to Elitist and arrogant. The only things that is saving you now is your location, and our nation’s caffeine addiction because “Getting a Starbucks” is now far from magical–or even pleasant–experience.
Would I choose a third place that is cluttered full of merchandise?
Would I tolerate someone selling me something–aggressively–in my third place?
I do not think so. Have some humility and honor the novel creation that you’ve made–the third place. Honor it, as if it’s sacred, and treat yourself as a host, hoping to make a good experience for people, not as the purveyors of culture.
Things that you must change and do:
There is some hope for you, you have great locations, and good memories. I’ll be back, I’m sure, in six months, and I’m sure that there are many people like me.
- Coffee, dammit. A Starbucks must ooze coffee. It should smell like coffee, it should look like coffee, feel like coffee. Don’t worry about branching out, don’t worry about expanding (read: diluting) the brand. Be proud to sell coffee.
- De clutter. Less is more, and don’t insist on selling non useful items. If you want to share music, great. If you want to share gadgets, great, but remember…this is MY third place…and I won’t tolerate being monetized.
- Protect the third place on behalf of the customers. Always remember it is OURS and not YOURS. You have been honored by us to be included in our day, and it’s something that we can exclude (as I have done).
- Uphold the standards of authentic friendliness. Having people that are excited about the opportunity to honor people by knowing their drink, and seeing them off with a smile is the most important thing. This has to be practiced EVERYWHERE in your company.
- Focus on number of repeat customers in a week; most of us pay by credit card, those that don’t could have some type of unobtrusive rewards card. Measure how much we’re coming, measure if we stop coming, figure out why.
- Sell stuff online, not in store. Create a community online–have a reason to go, and if you must sell us crap, do it there.
- Figure out what the super users like, want and use, and cater to them (formerly us). The rest will be evangelized.
- Charge more for coffee. I’d be more inclined to pay $3 bucks for a perfect cup of drip coffee than I would be inclined to tolerate being sold to. Best Buy wrecks the experience by hawking an extended warranty. Don’t you be like them.
- Engage more with the community. Have more of a community bulletin board, welcome meetings in the community, and have some fun.
I know that you’ll see this eventually, and I sincerely hope it’s not too late to save the brand. End whatever commitments with the other brands that want to monetize your customers. Turn the volume down, and reconnect with the millions that still love you. Begin to earn the honored place that you enjoy, and begin to approach it with a sense of humility.
Best Regards,
Chris Johnson
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