Guest Post: Advice to Starbucks CEO Howard Schultz
Starbucks (SBUX) is one of our favorite topics on Postcards. We’re in the stores everyday. We vigilantly watch CEO Howard Schultz’s efforts to slash costs, revive the brand, treat employees respectfully, satisfy investors, and fight incursions by very aggressive McDonald’s (MCD) and Dunkin’ Donuts. Today’s Wall Street Journal has an interesting story about Starbucks’ latest efficiency efforts–which could compromise the brand “romance,” which Schultz has long said distinguishes Starbucks, and employee (or “partner”) morale. Sun Min Kimes, a behind-the-counter barista at a Starbucks in Ashburn, Virginia felt strongly enough about the struggles to write this Guest Post. We hope Howard Schultz reads it.
by Sun Min Kimes
I started working for Starbucks a couple of years ago, after I returned to the U.S. from Seoul. I first moved to America 30 years ago, but my husband and I went back to my native country, South Korea, when my daughter–who is a writer-reporter at Fortune–left for college. Upon our return to Ashburn, Virginia, I wanted to get a part-time job, so I drove to the Starbucks near our house and filled out an application.
I was hired after my second interview. When I started the job, I was very nervous about the long lines of customers and complicated terms for everything. Although I came here from Korea many years ago, English is my second language. Sometimes, customers were frustrated if I took too long or made mistakes. So I made my own homemade notebook of Starbucks recipes and studied it every night.
Eventually, I became comfortable at work. I began to see the same customers every day, and we became friends, even talking about our lives. I met a 45-year-old woman whose teenage son loves sports (like my children did), and a Filipino girl who thought she had to leave the states but received permission to stay. There’s a gentleman whose wife is terminally ill–he comes in, sits down, and reads a book most days. I think being here comforts him.
Over time, I grew more interested in the company. In fact, many of us “partners” feel this way. We track what is happening through various blogs. We know the business has been going through tough times, so I was happy to hear that profits recently improved. However, I wish we could increase earnings without cutting costs.
It is very difficult sometimes when there are only two people on the floor doing everything. I think that Howard Schultz has made a lot of smart decisions, but I have some suggestions for him.
Howard, I think you have done a good job of being transparent, but it would be wonderful if you communicated more with the workers. I would like to get an internal newsletter, with information about what successful locations are doing, new products, and the company’s strategy. Additionally, customer service would improve if we received reeducation. I know many of us want the opportunity for advanced training.
I’ve heard that, in Seattle, you’re creating new “stealth coffee shops,” called 15th Avenue stores, without the Starbucks brand. Customers will see through this. Instead, why not empower–and incentivize–managers to appeal to their communities by sourcing food, music, and artwork from locals while sustaining our brand?
A few more suggestions: During the morning hours at busy stores, I think many of our customers would appreciate it if a single register were designated for drip coffee. And regarding new products: I just don’t think the company is successful in creating excitement. We’re told to provide samples, but I rarely see them in stores.
I know that Starbucks has been successful with social media, but I think you should reconsider your resistance to nationwide television advertising. We need to work harder to create buzz.
Regarding our retail items: I haven’t seen sales data, but I question the strategy. The various mugs, stuffed animals, tumblers, etc. look colorful and add to the store’s ambiance, but they sit on our shelves forever. We always end up marking them down. I think we should offer fewer items, and choose them more carefully.
Finally, you should develop a new plan to reward frequent visitors. Recognition is important to them.
These are pretty small ideas, and they are coming from someone who hasn’t been at Starbucks for that long. But even in my short time, I’ve become invested in the company. I love how it fosters diversity by bringing together people from different countries and walks of life. After I left my native country for the second time, Starbucks gave me a community. I hope you can keep it thriving.
Mr. Schultz, Please do not sponser the Joe and Mika show on MSNBC in New York. There are alot of people that feel this is a show that shows alot of resentment to our President. We will not buy your product anymore. We want Starbucks to stand with people that want and need people to bring everyone that love our country together. This show only separates us from each other. We did want so much to continue to buy your product, but cannot anymore. Sincerely, An American that cares
You have partners that are not treated right this is from a customer who sees it all too often. You have partners who are golden to the customers know their drinks, names, and serve have it all ready by the time they hit the register. You have some District Managers in REno who are so out of touch with what is really going on, the spend too much time with the numbers and not enough time with the people. You have expereinced workings that are leaving by the droves, you lose because of all the money you have spent to train them, and they take that money or training dollars when they leave and then you have to start all over again with another barista, and each time there is soemthing that is bound to be missed, resulting in a declining quality not only in your product your people. IF your partners are happy, your customers will be happy, and keep coming back. I know of partners, or in this case a shift supervisor who is followed from store to store for her friendly warm treatment. Yet she is continually over looked for promotions. You are really missing it, it should be the whole experience not a piece on this day, and come back for the other piece tomorrow. I may not come back one day.
The Starbucks experience changed when the “partner” rules changed. Working in a small and sometimes crowded environment with others requires developing relationships that are apparent to customers.
Starbucks lost that cache.
Employees who loved the brand and became friends with both customers and associates were admonished for the very behavior that made Starbucks special.
Many good young Managers and Baristas (sp) left for other jobs because they unfortunately, could not have friendships with their co-workers.
Starbucks don’t treat all their employees fairly, try having a disability that does not affect your intelligence and see how they treat you. They act as if you are stupid.
I never thought I would be able to buy an airplane meal outside of an actual flight. But Starbucks has made it possible with their new microwave breakfast sandwiches! How exciting for us all!
@ Brian/Regina/Canada
Brian,
I’ve found that the heads of companies aren’t in touch with the actual operations/daily flow of their business. The line staff implement what the corporate folks put on paper. Sure on paper it looks good, but in real life does it work, does it flow? More than likely it needs tweaking, even tweaking on a case by case basis. Just because your name is on the check doesn’t mean you know everything.
Well, one thing a company sure shouldn’t do is develop a gluten-free product — not do their homework, not communicate how to store it and sell it in the stores (they got moldy!) and also put out no effort to properly market it, so it did not sell well. However, SB got lotsa “aren’t we great folks” press in putting this product into the stores.
Ultimately the product — after less than a few months! — was removed. And replaced by a run-of-the-mill pre-packaged buy-just-about-anywhere crappy tasting “bar” that is GF. That is not even a Starbucks product.
There are, believe me, hundreds of thousands in the celiac disease community (people who cannot eat gluten) who feel kicked in the teeth. Personally, I’d rather have not gotten my hopes up.
Isiah – Your quip is neither funny, nor accurate.
I too work with Sun Min, and I second Stephen in every way. Sun Min is not “going away.” I have never met anyone so hard-working, respectful, considerate, genuine with our customers and team alike, and dedicated as Sun Min. I cannot come up with a word to summarize how high my opinion of her rests.
Bravo.
To Isiah in Chicago, there is no way Sun Min is going away “by the end of the week.” I happen to work with her and she is one of the most dedicated people I’ve ever met. She has nothing but respect from all the employees on staff and has one of the greatest work ethics I’ve ever seen.
Strangely enough, I can get everything mentioned here–local music, culture, atmosphere, great service, and a great cup of coffee–at a local coffee shop which I have frequented for years. I have no interest in patronizing Starbucks when I can get a better quality product with a nicer atmosphere without feeding the corporate monster.
Sorry, but I am going to say that Ms. Sun Kimes is very naive to think that any of her ideas have’nt been tried already. The very fact that she needs a forum in Fortune to “communicate” to her overlord speaks volumes! Howard is bereft of any creative ideas for turning the business around (come on, 15th Avenue stores? – oh, the Supersonics debacle!). Howard needs to go!
You couldn’t pay a consulting company enough money to get this kind of input. Praise to Sun Min Kimes and others who share in a company’s vision and brand image, enjoy their work, and are willing to offer constructive criticism to make the business better and stronger. Hopefully, she is heard and strong consideration to her points is given. Sun Min you can be a part of our team at Get10.com.
I stopped going to Stabucks last election day when I went in to get a free tall coffee, and when I told the girl I hadn’t voted yet, but was on the way, She told me she couldn’t give me the coffee until AFTER I voted. Seems higher ups don’t see that the memos on policy see their way to the front lines. That one incident was enough to send me to McDonalds everyday for their coffee.
Starsmucks has gone to only caring about the mighty dollar and poops on its employees. This is coming from a former manager that has seen a great company that cared for its employees and customers that now only cares for the $$$.
I now only go to Coffee Bean and Tea Leaf. Great product and great service. Give them a try you will see who is better.
I love Starbucks. I still do, even with all the recent missteps. My drink of choice is a latte, and every time I try it somewhere else, it’s either burnt to a crisp, or the foam is all wrong. Most of the time I can still get a perfect, smooth latte at Starbucks. And I’ll still pay $4 for it, because it’s that good.
But I won’t buy a stuffed animal, and I won’t buy a piece of pound cake, and I won’t buy a CD, and I won’t buy an espresso maker.
And yes, Panera gets my business instead when I need to use WiFi. Plus, I could sit all day in some of the older Starbucks, but the newer ones are somehow…colder in design. Hard chairs, all angles and exposed ductwork. It’s not the kind of place where you want to cozy up.
Maybe that’s deliberate – a higher turnover – but it also makes going to Starbucks feel less “special.” If I want to hustle out the door, I can go to McDonald’s (and I already do, when drip coffee is on my mind).
I’ll be a loyal customer as long as the lattes are still good (I’m a Duetto cardholder), but it pains me to see the company throwing all this money and energy at stuff that has nothing to do with Starbucks being a good coffeehouse. I don’t want my lattes going away because they couldn’t sell enough cookies, you know?
Create a drip coffee line: now it’s going to deter customers from wanting the fancier stuff. “That line is moving faster, and I would spend less anyways.” Spending less is not the goal.
Wifi has never been free – ever!! People don’t go to Starbucks for WIFI – they go for coffee. Panara doesn’t serve Caramel Macchiatos(sp~) or Frapps, which is what Starbucks is known for.
I’m not a Starbucks supporter for personal reasons. They could have treated a 6 year employee better, and not fired me for stupid reasons. In a business stand point, I can see why they do or don’t do certain things.
Starbucks was truly a fad, and Howard’s investment in Pinkberry was a biggest clue. Business wise it is now a matter of keeping customers…. Good Luck
I am not a Starbucks employee, but I am an occasional customer. Please, please, please increase the diversity and quality of the food you offer. The pastries often look stale, and even the “healthy” muffins are way too sweet. How about some healthier (i.e. low sugar, low carb) options?
I had been a regular Starbucks customer up until a few years ago myself. As I needed to use WiFi more often, I’ve started seeking out places that offered a free connection instead of the ridiculous rates that Starbucks’ wifi provider charges. Given that free wireless internet is more and more common these days, when will Starbucks finally give in?
Great Article, I hope the individual retains her employment.
I was a Die-Hard Starbucks FANATIC, enjoying two, sometime three beverages a day, seven days a week, up until about 2 years ago. I got tired of waiting for Drip Coffee in the mornings (It’s Coffee, it’s a Morning Beverage, I was amazed that they couldn’t figure out how to solve that problem.), their Pasties became marginal at best and the Stores were no longer “Comfortable.”
I’ve been back a few times over the years but it has never returned to its former days of glory. Too Bad; but hey, Howard made a great story there for awhile.
One more thing, Howard. Do you realize how mad the customers are getting when they find out the WIFI is no longer free? I know you want us to make it seem wonderful that you get 2 hours of “free” wifi with a Starbucks card, but what happens if its their first time in and they need to use it now?
We had a lady come in the other day who had to be online for a class or she would fail. Her home computer was down, so she brought her laptop to Starbucks to get online. She didn’t have a Starbucks card, so she bought one. She called to register it quickly so she could use her computer. She still couldn’t get online. I finally got her online using my own account. I wasn’t too comfortable doing it, but she was frantic. Another partner made a wonderful Iced Caramel White Mocha for her to enjoy now that she was finally online, and we now have a customer for life.
Most customers however, get so mad at Starbucks WIFI, that they go next door to Panara where it is 100 percent free. And they don’t come back.
I think its something you really need to consider. I know you don’t want people coming in to use it without purchasing something, and I can understand that. However, couldn’t we give them a code after their purchase? There has to be a better solution.
I recently left my position at Starbucks after several years with the company. It was a shame to see a company that I not only respected but truely love come to this point. These profits are great but the price Starbucks is paying is too great. The partners are frustrated and it is coming out in their service. When I started with the company we had a simple philosophy Take care of the “Partners” and the “Partners’ will take care of the customer and the customer will take care of the business. Now it is take care of the dollar. Cut costs at every turn. Over the course of time Starbucks as lowered it’s self to The level of normal fast food and it is sad considering where it had started.
I have been a Starbucks employee for 10 years and the number one thing that i would change is to stop having the baristas trying to get the customer to buy more muffins and merchandise and start having them create friendships and real conversations with them.
I’ve been a barista for more than one year. I have become so frustrated with the feeling that Howard no longer listens to his customers or his baristas.
So many of our regular customers have stopped coming because they can no longer afford Starbucks prices. I feel that if the products were more streamlined and the money spent more wisely, then the prices of the drinks could be lowered.
We mark out (throw away or donate) SO much brewed coffee and pastries. Brewing new coffee every thirty minutes has had to have created millions of dollars in wasted coffee alone and bringing out tons of new pastries that no one wants to eat results in lots of donations to local charities. I can’t even believe how much stuff we waste.
Another important consideration is that what works in Seattle doesn’t necessarily work in places like TN. I think you need to consider each market and what the local population enjoys. What we like to eat in the south is not what most people enjoy in the NW. People hear love their breakfast sandwiches on Biscuits, not artisan rolls. And they don’t want egg on their sandwich after 12pm. Where are the afternoon and evening sandwiches?
Contrary to popular belief, Howard, most of your employees do not feel the love from Starbucks. I was told in a recent performance review that although I am an extremely hard worker and have given the store manager no reason to rate me low, he must do so at the request of his superiors. He said “everyone has room for improvement”. I asked him to name something I need to improve and he couldn’t think of anything. This resulted in me getting a much smaller raise than I deserved. Your employees are also worried about getting enough hours to keep their health insurance and to pay their bills. Thankfully, that has improved some with the new optimization (i.e. layoffs of some less than optimal employees). And thankfully, that store manager was let go and I have been assured that I will be graded fairly next performance review.
And I realize that the new procedure for griding coffee every 8 minutes is to encourage the wonderful smell of coffee, but did you even consider how we are going to find time to do that? Do you realize that we often have one person to manage both the front and drive thru register and just one person to make the drinks? While the register person is trying to help a walk in customer, they are simultaneously talking on the headset to the person in the drive thru. Its frankly rude to both customers, but something we have to do. How are we supposed to do all that, brew coffee every 8 minutes, and find time to clean? Not to mention take a break.
I’m trying my best to work with you Howard. I really do appreciate my job and work hard, but I wish you would just listen sometimes. From a barista point of view, it can be very disheartening.
One thing I never understood about Starbucks, especially when it seemed that the music business was doing pretty well- Why doesn’t Starbucks sell books? They could mix nationals with local and even self-published authors. With their reach, they could outrun Oprah and the publishers would kill for the rights to the outlet. when i wrote my book and self-published my book, my unit cost was almost as low as a Starbucks and books don’t get made wrong (shrinkage), get spilled and also encourage people to hang out in the store and buy another carmel whatever.
Pattie – You know Howard. Be sure to tell him that this blog post got more comments than just about any of your others. (Including those written by you and him)
I have stopped going to Starbucks. They only have register for a line of 30 people. Their coffee is very bitter.
I now go to Koffi Palm Spring; they have the best tasting coffee on earth. Short lines, everyone pitches in to help, compared to Starbuck where you have 30 people lined up and some empoyees just standing there-damn it open up another register!
I haven’t stepped foot in a Starbucks in about a year. Too many things I loved about the place changed. Mainly making me pay for extra caramel in my caramel frappucino.
You would think the single register is a no brainer. I can also understand why this doesn’t take place. No matter how you designate the register. You will always have those few customer that will cross the line. They get their way and everyone else in line will expect the same.
As for those items that just sit on the shelves. Don’t take those awa just yet. I have my eye on a coffee maker. Just waiting for another markdown.
THis was a great article. These are the folks that deserve the real credit. Keep up the great work Sun Min Kimes.
I used to go 2 to 3 times a week, sudently they changed bread vendor and soften the flavor of their cofee, now I only go ocacionaly. I tried to send my complains, but they have no way to receive comments from their customers, and with out feedback they can get lost.
Yes! PLEASE, Howard, dedicate just one register in the morning for drip coffee. I have a simple order: “Grande House.” It takes 30 seconds to fill my cup and complete payment once I get to the register, yet I wait 5-8 minutes.
Good suggestions here from your front lines.
Thoughtful and well written. Her point about training should be taken seriously. research has demonstrated that performance improvement training brings results to the bottom line. Often, good ideas come from front-line workers and this is a classic example. I hope this comes to Howard’s attention and he acts on these suggestions.
it was a great article; i really enjoyed reading it… nice lady.
There a lot of great comments here. I have to agree with the idea that SB offers way to many products. About a year ago, they went through a great marketing campaign and pushed they were going to get back their roots….COFFEE. This is where Pike Place coffee began.
Oh how quickly they dismissed this idea. They decided that they needed to push more health conscious option and began serving “fruit smoothies.” They have discontinued several of there bagged bean offerings and changed some of them to seasonal offerings. Now, at least in the Pittsburgh area, you cannot even get a cup of the traditional “bold” coffee after 12pm. I don’t know if this is a regional concept, but I feel it’s really a poor choice when you are a coffee shop.
Starbucks is suppose to have the feel of being a local coffee shop but is so heavily micro-managed it is not funny. Many local factors affect each individual store. i.e. school graduation, a local festival, an annual sporting event. Many of which would not be figured in when the DC auto-ships coffee and other products based on previous years sales and the previous 6 weeks of sales.
Another person commented about the inadequate management that Starbucks hires that can’t even read a P&L. I think the inadequate management that they hire is a reason why so much micro management has been occurring.
The system that Starbucks uses to promote from within or direct hire leaves so much to be desired. Maybe I just had a very bad experience with Starbucks but I’m sure I’m not alone. Store manages are held to a certain standard and must act with ethics and integrity, but it doesn’t look good the people above them do not operate with the same level of ethics or integrity. I witnessed way to much “open” barista, supervisor, assistant store manager, store manager; district manager fraternization. Depending on who you were it got over looked and even joked about at levels that it should not have been joked about. Actually, it got over looked and even rewarded with promotions in several cases. Anyways, maybe it isn’t like this in other areas, but perhaps Starbucks should encourage there VP’s to be a bit more involved and aware what goes on with there DM’s in their regions.
The biggest suggestion for Starbucks…Improve the taste of your coffees.
What a great article! It was so honest and without hyperbole. I hope that Starbucks management will see this – she had some great ideas that are worth considering. Maybe companies should look down the ladder for ideas instead of always relying on the “suits” – you might find that your “troops” have some great ideas that are worth experimenting with!
What a terrific commentary, Starbucks are lucky to have such a great employee, they are very very hard to come by.
I appreciate that Sun Min Kimes ideas are very genuine and real, but many sound better on paper than how they could be executed in real life.
I also hope that she posts her ideas on the partner side of mystarbucksidea.com, a perfect place for these kinds of discussions.
The reality is that many Starbucks stores are too small for a separate drip register, and consequently there would be a confusing amorphous line. Furthermore, at this time drip brew consists often of no more than 15% of a store’s sales, thus a dedicated register may not be profitable or sensible. I can remember the days of a “whole bean” register and “beverage” register (very early 1990s) and even that confused customers.
She writes: “Finally, you should develop a new plan to reward frequent visitors. Recognition is important to them.”
Currently there are 2 main rewards programs in place and adding a third would create enormous confusion. Not everyone wants the exact same reward. The only reasonable thing to do is simply and consolidate the existing reward programs as much as possible.
She is incorrect that the “stealth” coffee shops are called “15th Avenue stores”. The first of three Seattle stealth stores is called “15th Avenue Coffee and Tea” and the next several stores (so I hear) will have names that reflect their neighborhood location.
All in all, I have no doubt that Sun Min Kimes has lots of genuine passion and ideas for Starbucks, and I hope that she takes those to mystarbucksidea.com where she can have a real engaged conversation with both partners and/or customers.
Melody
(@starbucksmelody on twitter)
(Please pardon typos)
I LOVE STARBUCKS . I USE TO GET A VENTI CARMEL MACHIOTO EVERY DAY. BUT MY JOB IS AFFECTED BY THE ECONOMY SO I AM ON A TIGHT BUDGET. I GET ONE EVERY THURSDAY…. AND LAST WEEK I DID GET A SAMPLE OF A SMOOTHIE ! YUM. I AGREE W SUN SOUNDS LIKE A GREAT EMPLOYEE
As a Store Manager at Sbux, I agree with most comments left. I think Starbucks is lucky to have a partner who cares enough about the company and feels comfortable enough to come forward and make some suggestions.
I agree with almost everything she says, but will also have to repectfully disagree with the separate line for drip coffee. I also manage a high volume store and with proper deployment and great partners, our speed of service is fantastic.
Customer voice is somewhat confusing to me. I came from a company in which EVERY customer was given the opportunity to call in and discuss the level of service they recieved.
At Starbucks, it is a rolling 3 month score, and about 10 responses a month. My store sees approximately 4600 customers a week. I don’t see how customer voice can be an accurate depiction of the level of service delivered from the store.
It seems recently a lot of changes have been implemented to strengthen the brand. I applaud Howard Schultz as I have seen many positive changes.
Slashing training courses has become an issue. I have parters ready to attend the Starbucks Experience class but can’t because no one is available to teach it. What happened to Situational Leadership class, or Supervisory Skills class? These tools would have been useful to my Shift Supervisor team. With the slash in Non-coverage time, I barely have enough time to “Respectfully” deliver a performance review. My store is so busy, I find it difficult at times to stop and pull someone off the floor to do so.
My suggestion would be to begin empowering the Store Managers to make the right decision. I do understand that improper store management has ultimately crushed some stores, but for those of us who are successful, we should be given the TIME to push our stores even further.
Untill last January, the last five years of my life I have worked for starbucks. I recall when Howard came back, how happy and proud I was. The hope was shortlived. Here is two cents from a former manager. Do what you do best. The promos rarely bring in new business. Instead volume stays the same and costs go up. There is a balance between being excited about a new offering and shoving it down customers throats. The success of my store should not have been measured in units sold daily. The customer voice is a flawed program. I have seen managers nearly fired for low scores. But their bottom line is higher than previous years while overall sales are down. And everyone knows that people will respond when they are upset. Furthermore, anything less than a perfect mark doesn’t count. Nobody is perfect. Any store with all perfect marks is probably offering an incentive (against the “rules”) to do so. There has also been far too many managers in place who do not know how to manage a business. If you can’t read a P&L, you can’t run your business.
I will respectfully disagree about the drip only line. Proper deployment and good staff should have your line moving quickly. A drip line will only take manpower away from other areas more crucial during peak. I ran a high volume store. Trust me on this.
I wish starbucks the best. I still hold stock, frequent the stores, and miss my customers who made it all worth it.
I worked at Starbucks for 11 years, until recently when I opened my own business. For 11 years, I worked my way up the chain – from Barista to Shift Supervisor, to Assistant Manager, to Manager and back to Shift Supervisor while I got my business plan together. Suffice it to say, I’ve been around the block a few times at Starbucks and here are my thoughts:
Sun is right about her suggestions. However, everything she cites has either already been done or will never be implemented the way they should by Starbucks.
An internal newsletter? It’s in the portal, located on the main computer of each store. Nobody at the store level reads it anymore because there is a lack of communication at the regional, district, and store level. Essentially, corporate is so focused on communicating profit than they are communicating the side of Starbucks that matters.
Reeducation? Howard Schultz went on a training rampage about 2 years ago. However, those trainings were in-store trainings. Prior to 2002, the company had trainings outside of the store setting that focused on efficiency, customer service, equipment, and leadership stores. Those trainings are now in-store and the implementation is shaky at best. A store manager faced with mandatory spending cuts will likely cut training for a Shift Supervisor or Barista and put them directly on the floor. I’ve seen this happen in more than a few stores.
15th Ave Stores? Big mistake.
Empowering and incentivizing managers? Great idea that was tried in a few test markets back in 2005-2006. I am not sure what the results were, but I do know that each Starbucks region contracts with local delis and pastry producers. That’s why you see different pastries in different regions of the United States.
Drip coffee line? I know a pilot program was tried at some point during my employment, but was eventually discarded. The philosophy was that if a customer waits in line a little longer, they will look at the selection of pastries or tumblers and decide to buy that instead.
Samples in stores? Sun is right – the implementation is lacking. Howard Schultz is a great communicator, but if the implementation at the store level isn’t happening, then you can’t generate excitement. Of course, implementation of sampling requires that an extra Barista be available for sampling and talking about the samples. In this economic environment, sampling is prohibitively expensive because of the store mandate requiring optimum scheduling. More often than not, the store will need those Baristas on the floor, attending customers and they will not be available for sampling.
Nationwide commercials? No. There’s no heart in that. However, if profit is what Schultz is looking for, then it may work. The question there is whether the core starbucks customers would negatively respond to television advertising.
Stores should offer fewer items. This was recently implemented the last two Christmas Holiday seasons, where the number of items offered was drastically reduced. I completely agree that it would help, but the last numbers I saw (from 2 months ago) show that even with a decrease in the quantity of items, nobody is buying.
There is still room for improvement. I would have stayed at Starbucks forever had I not received an opportunity of a lifetime. I wish it the best and hope Howard Schultz is able to get store-level implementation of his initiatives. He has great ideas, but needs to revitalize the store-level ownership feeling we used to have.
I agree with several of her suggestions. We frequent Starbucks several times a week and I would love to see customer loyalty rewarded. That being said, I also have no idea why they are trying to sell me a plush monkey. So take back some of the crap on the shelves and put out more useful things that can be given as gifts, like the tea boxes and selections that come out at Christmas.
Not having free wireless is also a drawback, there have been times I have bypassed sbx because I needed a connection and could get it elsewhere. If they don’t want you there all day they could at least give you an hour.
One thing they have done right is the “treat receipt”, goodness knows how much extra we’ve spent coming in there because of it!
The arrogance of some business owners astounds me. They think they’ve got it on lockdown just because they’ve been in business for 10 or more years. Well guess what, we’ve watched countless longterm businesses fail while their owners cry about the bad economy. That excuse is wearing itself out. The bad economy is in fact weeding out companies that are run by morons.
If Starbucks doesn’t appreciate Sun Min, another smarter company will.
In Corporate America it’s never about the customer, it’s about the investors or owners.
Coffee at Starbucks tastes burnt. The price is 2x what it should be. It is recognized as a Yuppee outpost. Nobody buys mugs and stuffed animals, especially if they can get it free somewhere else.
What an excellent, thoughtful article! If Mr. Schultz wants to live up to his and Starbucks’ reputation, he will take Sun’s suggestions to heart. I think she’s right on!
Sun is clearly a valuable employee. Great suggestions. However, this brand is dead and has no chance of being revived. Partly because of many mistakes made by the company in mismanagement, over-expansion but also due to the times. The economy and the mindset that once brought prosperity has changed. The gas guzzling SUV drivers -Lincoln navigators, Cadillac escalades, etc- now have bigger fish to fry facing foreclosure and job losses. The 15th Ave shops is the worst idea I’ve heard since hearing the Dixie Chicks weren’t Country anymore.
Starbucks changed the game for me the moment they became a business rather than a welcoming social atmosphere. Competitor’s are friendly, sociable, and don’t push products in a clients face like Starbucks began doing in recent times. It became a business when free WiFi was contracted out to the highest bidder. It became a sales corporation that can’t serve a customer a drink without offering two other drinks and an array of pastries. I even burned my hand the first time my drink was served without a thermal sleeve. This non-personal, ignorant service to customers is what’s killing Starbucks.
It’s amazing how some business owners are so closed minded!!! Seriously this barista has daily contacts with customers! She of all people would know what the customer wants and what the customer doesn’t want. If you are a business owner you should listen to the people that have one-on-one’s with the customers. How do you figure that sitting in a big man’s chair gives you the right to say you know what people want!Maybe fi companies listened to their workers more instead of being so closed minded, so many companies wouldnt be going under. Everytime I go to a store of any kind I have noticed the lack of customer service given. Perhaps giving the customer what they are asking the workers for would help.This is coming from someone that has had 20 years of customer service experience and management.
So according to you, Brian/Regina/Canada, the customer is always wrong?
Well done, Ms. Kimes. You write beautiful and have excellent business sensibilities. I hope Howard is listening.
I think that Ms Sun’s ideas are good. But I have another point to make. What I don’t understand as a businessman(I do own my own company)is why the two negative posters are so defensive about Ms Sun’s temerity in offering advice. Even if they are successful (good for them), do they think that they have nothing to learn from the people who build their success up front? I always listen to advice. If it’s good, it’s good; if it’s bad, it’s bad and I can choose not to take it. And it’s free.
Why not reinstitute the rewards card for a free coffee drink for every 10 drinks a customer buys. This is giving back value to loyal customers. Giving back value will return back to you and your stockholders in the long run. As quoted by Shakespeare” the more you give the more you will have.”
My girlfriend used to work at Starbucks. I heard how the normal “baristas” were fine and good employees, but how the manager(s) seemed to be generally very lazy, sitting in the back talking to each other even though they could plainly see people waiting in line or things needing to be done out front. The worst part, however, was the foul-mouths of many of the employees and others working in the back, where customers cannot hear them. It just was not a good environment in which to work, and I’m glad she quit.
Sun Min Kimes makes some good suggestions, and I hope that others also think about how to improve the brand (which is faltering due to an overall lowering of standards and dilution of the luxury brand flavor, as others have mentioned here in the comments).
SBUX could probably get more business if they offered some more promos. McD’s has been giving out coupons for free breakfast sandwiches with purchase of a latte ($3 in my area). It ends up being not a bad deal, considering the latte itself is kind of pricey IMO. I’m sure McD’s is making a decent amount of money off the promo because the food doesn’t cost that much to make, but they’re still getting $3 here and there that they otherwise wouldn’t.
I never bought into the concept of high priced coffee- McDonalds is my choice.
Walt from Georgia
The 15th Ave Cafes have been in the news for a while here in Seattle. No Surprises There.
These are all great suggestions from Sun. Without crossing lines.
If her ideas are employed maybe Schultz can win back some of his local Seattle business
I used to have a son-in-law that after working at a business for about 3 months thought he knew more than the owner. This business had been around for about 20 years. He was let go after about 3 days of pushing his knowledge on the owner. This person in the article just revealed what may have been company secrets about the new chain and should not feel bad if they cut her loose in the very near future. Here is some good advise…scrape up your own money, start your own business and go be succesful with employees that tell you how messed up your business is.
If ever Starbucks ever is able to tap into the creativity of employees such as this one, the brand will be unassailable. I think Ms. Kimes has tapped into a key point, that many of these stores are really micro-communities, and should be allowed to innovate to better serve their local customers.
BRAVO! As a Starbucks customer for over 10 years I applaud Sun’s suggestions. This is a person who cares about the customers she serves and the company that writes her checks. Wouldn’t it be nice if all employees were that insightful about their company. It would probably do away with 75% of those in management.
I have one more idea to suggest…please turn down the music. Sometimes it is so loud I can’t concentrate on what I’m reading or hear my partner’s conversation.
Thanks for the great coffee Starbucks!
These are some great ideas from a barista. Sbux has lost it’s romance and luxury however. It’s just not as sexy as it used to be….simply because it seems I can get it any any place of commerce I visit (ie grocery store, mall, target.) While these sites might be providing much needed revenue with little capital cost they are completely ruining the brand. If sbux 2.0 includes one at every corner I would much rather choose the locally owned shop.
Dear Mr. Schultz:
You should pay attention to suggestions by your partners who work everyday on the front lines. Input from them is invaluable because they see firsthand what the strengths and weaknesses are.
Starbucks should listen to this employee. She is focused on customer service. Imagine that?
Kudos to this smart lady!
As an owner of a successful 6-store operation, I find it very interesting how so many people can still find it in themselves to tell managemenrs/owners of successful operations how they should run their companies. Amazing to constantly hear this from people that have little or no financial investment. Thanks.
Great insight from Sun! I commend you for speaking up and being the voice for your fellow colleagues.
Localising the Starbucks stores rather than a costly rebranding (e.g. 15th Avenue) will do more for engendering community support and providing shareholder value. I like the express line for drip coffee customers, too!
Move this person to the Executive suite ASAP!!!
i told Sbux many years ago what can improve it, but no one manager were able to deliver these ideas to higher level management. top managers etc. don’t want to listen to anybody. all things that Sbux is trying now were proposed long time ego. what Sbux is doing now it’s not a clear solid line, it’s dash-line- that means in grawings invisible line. it’s not succes. it hysteria.no respect to workers at all, there is only show inside of the company. Show must go on! that’s it. Sbux is a monster not flexible to people needs. Management particularly bad. Sbux layed off workers who did good job but keep almost all midle managers who brought company down. What kind new ideas they can develope?
they are buzy to secure their position by any means. they are YES men, and Sbux cultivates such attitude.
everything that Sbux is doing- it’s copy of experience of others but in very clumcy way: sevice,design,etc.
English is my second language but i hope it is understandable.
All of her suggestions make me think of my favorite coffee shop, Dunn Bros. I think Sun Min Kimes is spot on in her suggestions. The are the attributes that keep me going to DB and not starbucks.
I agree with you, Sun Min. Although I am not an employee of Starbucks, I am a great fan and usually get dinged for being so faithful to the company. I believe in Howard Shultz and his dream to create a company that not only takes care of his employees but wants to reach out to the community. I’ve seen the cut in the cleanliness of the stores. I know that workers are trying not only to maintain its cleanliness but be great Baristas at the same time. I do however see a love of their company again. Lets hope we don’t lose these faithful employees because they are overworked. Let them be what they were trained to be, fabulous Baristas. that make fabulous coffee. Keep going Mr. Shultz you are on the right track.
..sounds like some very sound advice. As a holder of shares from first issue, I’d hope someone listens to and acts on these recommendations.
Wow, what a great piece of insight from one of Starbucks employees. I hope the CEO sees this and implements some of what this woman recommends. Generally speaking, great strategies and tactics start from the bottom and rise. This happens because the people on the front lines know what the customer wants, not the people in the corner office. Very nice letter thanks for publishing it.
I think you have some very insightful and great suggestions. Your right, Starbucks is a community, so much more than a “coffee shop”. Having local musicians and art work would be powerful for the art industry of your local economy. That alone would increase Starbucks business.
Good for you!
I stopped going to Starbucks because I did not want to wait 10 Minutes or longer for Drip Coffee! I’m saving over $60 Bucks a month…multiply that by thousands Starbucks!
Good luck to this young lady. An Accent reduction class given at the Local Community Colleges can help you better understand the Customer’s needs, Further your career and help you assimilate to further your prosperity.
Good luck!
Co-founder and creative director of Tory Burch LLC
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I have been working for Starbucks since 2005, so I have seen it go through its ups and downs. It is just a part-time job, but with recent working regulations I feel like I’ve sold my soul to the company.
I ended up trying to quit at the end of the summer because I didn’t think I could balance my junior year of college with a mandatory 16hour week schedule, but my boss begged me to stay. There have been so many job cuts and people just quitting out of frustration that my store has suffered. I stayed on, but I often regret it.
I feel forced to sell products like my job depended on it. Give it a rest Howard, they’re already in the store, if they don’t want to buy VIA, they don’t want to. I personally can’t stand the crap and can’t believe I wasted a free mark-out on it.
I’m to the point now where when our customer invoice comes back and it says that the partners look sad, tired, and over worked, I just laugh because they can tell from the outside that something is wrong.
Howard… go sit on your piles of money somewhere and just let well enough alone.