One problem I think Starbucks might have is similar to that of Wal-Mart: Both firms seemed to focus very much on expansion, expansion, expansion. Meanwhile, the customer experience suffers at the stores that already exist.

It might be time for Starbucks to take a step back and focus on the stores they have. They have expanded like mad so the next step might be to earn more per store by delighting the customer.

I think Schultz and Co. area likely thinking about very hard about this as indicated by his quote on "laser" focus on the customer. That is not the kind of quote you would expect from someone who wants to go on a store building bender. So he may well be on the right track.

I hate to say it but I think many of their stores compete with each other. I have two within walking distance. Why not have one *very* good store in a location rather than two okay stores?

The other thing that is a bit off-putting about Starbucks is they seem to want you in the door and then out, whereas the locally owned places are often warm and inviting. There are still places where you can get a nice real mug, sit at a nice table or a couch, and have a coffee and scone. Sure, most people just want a coffee to go but is that really all there is to it?

I am from Portland, not far from Seattle (headquarters of Starbucks). We have the coffee culture here so this is a topic dear to my heart. I could not get through the cloudy, rainy season without tons of coffee. I also remember when Starbucks was considered cool in Seattle and elsewhere! Wow, how things have changed.

The thing is I think Starbucks gives you mixed messages. They play relaxing music and set a good tone but that clashes with the crank 'em through attitude. Maybe they need to decide who they are?

I will snd on a good note. The morale of store employees usually seems high. Whenever I go to a Starbucks the people working always at least seem to be peppy and glad to be there. That is hard to fake so somebody so store level management is doing something right. Starbucks please, please, please do not forget that morale appears high at many of your stores. Do not do anything to ruin that. Keep the benefits good or even improve them and pay as well. Treat your friendly employees well as that is something nice about visiting a Starbucks.

I can sum up what Starbucks needs to do in four words: GET BACK TO BASICS! (Gee, I wish I had them as a client, that would the easiest 6-figure project I've ever had.)

Get back to what made them a coveted brand in the first place. A great cup of coffee (and a pastry when I'm not on a perpetual diet) + a great atomosphere = success. Plain and simple! The exclusivity and elusiveness of Starbucks was also a huge part of that great brand experience.

New York City, where I live, is littered with Starbucks stores. Too many of them to keep the cache the brand once had. If I need a bank or a bandaid, it's great to have a Citibank or a Duane Reade within steps of each other: pure convenience brands.

Schultz and his crew strayed by doing what so many successful brands do, tried to be all things to all people.

If I want music, I go to Amazon. If I want a breakfast sandwich, I (gasp!) go to McDonald': (which by the way is now trying out the Starbuck's model). Let's see where THAT goes...

Jeanne,

1. Creating four divisions is not a new idea for Starbucks. When I was with them in the mid-'90s, we had four regions, made up in the same manner as what today they are calling four divisions.

2. Here's the greatest concern about Starbucks. When a company is led by a "star," that company needs to be able to transition to a new President and CEO. If it cannot, as Starbucks was not, there are problems that go deep within the culture, beginning with the executives.

Businesses cannot be labeled good or great, if their succession plans fail. Today, Starbucks finds itself struggling from within. And for a business that does everything from the inside/out, that is a serious problem. One it may not be able to overcome.

-Starbucks - singular (IS slashing jobs...) or plural (THEY'RE laying off...)? Hint, you were right the first time.
-"loose" should be "lose"
-"reign" should be "rein"

That's just for starters. I could go on (like, what's with the semi-colon after Feb. 26?).

c'mon, MarketingProfs -- set a good example and have a copy editor review these posts. As any marketer knows, the WAY you deliver your message is as important as the message itself; mistakes like these reflect poorly on the whole site.

thanks.

Dawn,

Good points. Get back to basics and do those well.

I keep expecting pasta dinners or haircuts on offer next time I walk into a Starbucks...

I will add that some healthy things to go with coffee would are good, too, not just high calorie things. That seems to be a problem with most coffee shops. You have coffee but everything to go with it packs the calories.

Starbucks has made some strides in this area and I would argue that is part of basics: A variety of things to choose to have with your coffee.

many times there's no real growth among corporations who explode by opening "X" number of stores each year. There's a false sense of growth is for Wall Street's entertainment. Many corporations are required to open new stores regardless of what existing stores are producing. There's no real growth happening although it appears that way. Could "five bucks" see the error of such thinking and get back to it's "roots"? Perhaps.

many times there's no real growth among corporations who explode by opening "X" number of stores each year. There's a false sense of growth is for Wall Street's entertainment. Many corporations are required to open new stores regardless of what existing stores are producing. There's no real growth happening although it appears that way. Could "five bucks" see the error of such thinking and get back to it's "roots"? Perhaps.

I love to read what u guys think.
I wish someone could just take a position and bullet point it into a plan they would execute. It's great for all of us to be a Monday Morning Quarter Back. I would love to see one of us stick their neck out and live by it