Comments on: Brewing Innovation at Starbucks

By: Andrew Der

Andrew Der — Wed, 10 Feb 2010 15:21:06 +0000

Thanks for the compliment, Hal. If you’re not subscribed already, you might consider subscribing to futurethink’s monthly newsletter in addition to reading the blog:

http://www.getfuturethink.com/newsletter

By: Hal Vanalstin

Hal Vanalstin — Wed, 10 Feb 2010 11:17:26 +0000

Hey, first I want to say awesome blog. I don’t always agree with your opinions but it’s always a interesting read.
Keep up the good posting.

By: Chas Martin

Chas Martin — Wed, 25 Jun 2008 18:45:30 +0000

This is an interesting situation. The thing that made Starbucks popular was their concept of being #3. This was explained by Scott Bedbury. He was head of marketing during the great years at Starbucks. He was at Nike before that in the “Just do it” years. Bedbury identified Starbucks’ ideal position as #3, the ideal location after home (#1) and work (#2). Starbucks wanted to be the dependable environment where you could have a consistent experience. It was neither home nr work, but a refuge from both. And that worked. But, then, came the cancer concept – growth for the sake of growth. And with that concept driving decisions, Starbucks morphed from a unique caffeine refuge into a maze merchandise, sandwiches, salads, mugs, espresso makers, music, stuffed animals, whatever. It became a gauntlet of commercial noise which undermined the experience they had perfected. That experience opportunity was taken up by smaller cafes, true to the original concept of refuge.
I’m from Portland. We take coffee as seriously as people in Seattle. When gray weather comes (and stays indefinitely) caffeine is the best defense. With multiple cafes to choose from on nearly every block, Starbucks ranks #4. If there is a local, one-off cafe nearby, that’s the #3 choice for me. Can Starbucks regain the market space they created and abandoned? I think not. They’ll have to create something else. But, maybe with the help of customer suggestions, they will find it.

By: Damon Yudichak

Damon Yudichak — Fri, 13 Jun 2008 00:18:22 +0000

I was delighted to see your post and to learn of my Starbucks idea website. How fascinating it is to see some of the ideas that are being submitted. What a great way for Starbucks to get their customers engaged. What better way is there to recapture the soul of Starbucks then to find out from the customers what they are craving to make Starbucks that great experience? While it is great to see that Starbucks is gathering ideas, I will be interested to see what comes of people’s idea submission. Like any idea collection tool, if people don’t see ideas being used, then this will be a wasted effort. In the past, I have made suggestions to Starbucks that I think they should institute free Wi-Fi internet. With the proliferation of free Wi-Fi at so many restaurants and cafés, I am surprised that Starbucks has not chosen to institute this as part of the Starbucks experience. I frequent Starbucks because it is that “third place” for me. This is the place that I go to spur my creativity and meet with people. That is the reason why I don’t mind paying the money for a cup of coffee there because I am there for more than just a cup of Joe. Saying all this, if I need to use the internet, I go somewhere else that offers free Wi-Fi and Starbucks loses out on a sale.

On May 19, 2008 there was a fascinating article in the Wall Street Journal entitled Schultz’s Second Act Jolts Starbucks. Of particular interest to me was the reference that Schultz is viewed as the soul of Starbucks. This has caused problems because one of the overriding thoughts that employees base their decisions on is “What would Howard think?” This thought process can lead to debilitating group think that will choke innovation out of the company. The article talked about how Schultz personally chose the redesign of the old Starbucks logo that is being used for the Pike Place Roast campaign. Starbucks has a consensus culture that is going to have to change in order for innovate new ideas to flourish. It will be interesting to what comes of this turnaround effort.