Want to know what's going on with Starbucks? Like so many companies that achieve such levels of success, Why the company was founded in the first place has been forgotten. The cause that drove them to change American culture has now become something much less inspiring -- now, it's all about What they do. A company devoted to "the third space" is now just selling coffee.
The following is a letter I sent recently to Howard Schultz, CEO of Starbucks.
July 29, 2008Dear Howard:
I miss Starbucks.
There was a time, not too long ago, that Starbucks stood for something. There was an underlying cause, a purpose, a belief you had about the world. It was that idea that I bought, not the coffee. And it was inspiring.
But those days are gone.
Now it's about coffee and money. Lets be honest, it's an open debate if Starbucks coffee is really better (and even if it is, I can get about the same from someone else). And the money? Well, as soon as a company starts focusing on the money, they certainly can't focus on the customer experience. Starbucks_mug
It's pretty remarkable. Starbucks is signally responsible for creating a coffee shop culture in America. Starbucks didn't bring coffee to the United States - it brought the coffee shop experience - the third space, you called it. The space between home and work. People bought into the Starbucks belief - I know I did. Your cause was clear and your actions proved it. But over time the cause has lost its clarity, and your actions prove it.
There was a time when you invited people to spend time in the third space - giving those who wanted to stay a ceramic cup and ceramic plate. But then a focus on the money started to erode that purpose. Certain decisions started to muddy the cause...dilute the belief. And paper cups became the standard. Nothing says to a customer, "we love you now get out" like a paper cup. It started to be about the coffee and not about the experience. It's no longer about the third space.
I hope you rediscover why you do what you do. I hope you once again become a champion for your cause, not just a purveyor of caffeinated drinks. I miss the third space. I'm not telling you anything you don't know, in fact, it was you who told me over the past 20 years what you believed...and I believed you.
I would love to help you rediscover your Why. I would love to help you inspire people again.
Hell - I just miss you the way you used to be. I loved that Starbucks.With great respect,
Simon Sinek
For more from Simon Sinek, visit simonsinek.com
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As a Seattle resident, I know several people who were recently laid off at the corporate headquarters, and these were people who had been with the company for years, believed in the Starbucks brand, worked their hind ends off, constantly choosing work over family, knew the company inside and out, only to be tossed on the street like so much garbage. Many many of these people where let go, not for any performance reasons, but because they MADE TOO MUCH MONEY, AND HAD RISEN TO A HIGH LEVEL OF BENEFITS. These choices were no doubt made by the recent influx of fast food executives. Who, by any measure are only out for the advancement of their own careers.
This is the new corporate philosophy - treat your employees like so much "product", toss them out as soon as they become too "expensive",and create a climate of fear, Sort of like how you describe the treatment of the customers. Starbucks is creating its own destiny, starting with its vile treatment of its long term employees, and they deserve what they get.
Venti killed the starbucks store....
The one time I went to a Starbucks I almost got into a fight with the 'barista' over my refusal to ask for the dam-ned coffee in their language. "you mean Venti?' she said... I dont need a teenager to tell me how to order overpriced coffee, thank you. I never went back.
Starbucks definitely went too business; too many stores and lousy clerks. They lost control of their workers, and their coffee shop experience. Yes, it's all about money and the hell with the customer, so now 600 stores will close. Stop focusing on money, money, money.
Here's where I think Starbucks went wrong... they opened soooo many stores, they ran our of friendly bohemians with good attitudes to employ. Now real people (ugh) work there. Their attitude ruins the taste of the coffee and thus the experience.
Sore of like professional baseball... so may teams now that half the players are should be minor leaguers.
When Jay Leno makes jokes about Starbucks closing 600 stores his audience applauds. But a cup of coffee or a gallon of gas. If you're out of work and looking for a job, take your pick.
Am I missing something here? I live in Seattle now and for the past 4 years, but am a native New Yorker and was there when Starbucks began their business. In NYC, Starbucks completely decimated the local mom and pop and other small business alternative coffee shops and provided very little in return vis-a-vis a higher quality product, comfortable seating, or a pleasurable experience. They have gotten better on all these fronts over the past year or two, but I totally missed out on the Starbucks "vision" and can't say I feel the worse off for it.
" Starbucks is signally responsible for creating a coffee shop culture in America." Wow, you really bought into that idea, didn't you. If it wasn't so demonstrably wrong, well, I just don't know.
Here in Charleston SC, we have a "coffee shop culture" that goes back to our very founding. The "Pink House", on Chalmers Street (and arguably the oldest structure in the city), was a tavern and coffee house for sailors and residents alike when it was first opened circa 1705. The coffee roaster was located in the building next door - something that most certainly can't be said for Starbucks. Throughout the city's 332-year history coffee has been the drink of the working class, and the coffee houses were places for the common men to meet, discuss politics, and hold fraternal meetings - that "third space" you describe, neither work nor home.
I'll let others defend their own cities' coffee house heritage, but Cafe du Monde in New Orleans also springs to mind.
Starbucks created coffee house culture, indeed. Ha!
The "coffee shop culture" I always liked involved live music and readings.
I'm not sure what you meant with your comment, but the coffee shop I used to be a barista at had live music on a regular basis...
If Starbucks shut down its 12 stores in our metro area (many of which have never offered live music of any kind) there would still be more than 20 independent coffee shops left. The locals have an aversion to chains of any kind, so the Starbucks blitzkrieg was limited here. Unfortunately, the two most successful SB locations were aquired only by making the landlords of The Goodie House and Port City Java "offers they couldn't refuse" instantly putting two of the busiest independent shops out of business (they relocated to different areas, but lost the prime spots across the street from CofC campus). When our new college library opened a coffee shop inside, the students made it explicitly clear that they would not tolerate a SB actually on campus - an independent was chosen to take the space.
Just two suggestions...
http://www.iheartkudu.com
http://www.rutledgecoffee.com
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Posted August 8, 2008 | 03:44 PM (EST)