Starbuck Coffee

Starbucks To Change The Way It Makes Coffee

admin — Wed, 17 Jun 2009 18:34:34 +0000

Instead of grinding coffee only in the morning, baristas will grind beans each time a new pot is brewed. Timers will buzz to signal when it’s time to make a new batch, according to internal Starbucks documents reviewed by The Wall Street Journal.

Source: Wall Street Journal

Instant Starbucks coffee?

admin — Tue, 17 Feb 2009 15:10:16 +0000

Starbucks is preparing a new brew of coffee, and is designed to mimic the taste of store-bought Starbucks. Some Starbucks will begin selling Via next month.

STARBUCKS’ E-MAIL TO EMPLOYEES

From: Partner Communications
Sent: Thursday, February 12, 2009 2:21 PM
Subject: Breakthrough Product News

Dear Partners,

This afternoon, a number of media outlets have reported that Starbucks will be introducing a new product next week. Here’s what we can tell you:

We are hosting exclusive events next week in New York and other cities where we will unveil the product. We have been working on this project for over 20 years, and have a patent pending on the technology that enables us to absolutely replicate the taste of Starbucks coffee in an instant form. And as Howard has always said, “The proof is in the cup.”

The instant coffee market is a $17 billion global market and it offers us a significant opportunity as we launch this transformational product.

We wanted to share the key points and get primed for next week. Details and samples will be arriving in stores by Wednesday, so that you can discover first-hand what all the excitement is about.

Best,

Vivek Varma
svp, Public Affairs

Starbucks Coffee Enters Bulgarian Market

admin — Sat, 25 Oct 2008 12:44:07 +0000

Starbucks is set to open its first Bulgarian coffee shop in the capital of Sofia in early November, 2008, the company said recently in a media release. The American based coffee chain will open its new store as a franchise through Greek firm Marinopoulos Bros. The store will be the first of many they plan to open in Bulgaria, according to the company.

The new Starbucks coffee shop will be located on the corner of Vassil Levski Boulevard and Gurko Street on the premises of a former Pizza Hut franchise. The Greek franchisee has also secured additional locations for more Starbucks and is looking to staff the new coffee shops.

Bulgaria is the newest European country to see Starbucks enter; Portugal saw its first shop open at the end of September. Starbucks Coffee Portugal, Lda, opened its first coffee house in the Alegro Mall in Alfragide, a suburb of Lisbon. Starbucks also has 75 retail stores in Spain and 45 in France.

What’s the taste of Starbucks Thanksgiving blend?

admin — Sat, 18 Oct 2008 09:37:03 +0000

When Starbucks called Tom Douglas asking the Seattle restaurant icon to collaborate on a Starbucks coffee blend for Thanksgiving, Douglas figured what the heck. He’s carried Starbucks coffee in his restaurants for almost 20 years.

“I thought it was going to be more of a marketing thing.”

Turns out, it was a serious culinary experience, beginning with a three-hour tasting at Starbucks’ headquarters this summer.

Douglas and his executive chef, Eric Tanaka, sampled 20 kinds of coffee with Starbucks’ top tasters, created some blends and narrowed the field to two.

“I got a little edgy, even though you spit it all out,” said Douglas, whose restaurants include Dahlia Lounge, Lola and Serious Pie.

Then Douglas whipped up an early Thanksgiving dinner at his Palace Kitchen, and they tried the coffees with turkey in a sage and sweet onion gravy.

“I didn’t realize how much the herbs in the turkey would bring out the herbalness of the coffee,” Douglas said.

“We went with the more acidic coffee, to break the fattiness of the gravy.”

Thus was born Starbucks’ first Thanksgiving Blend, a combination of beans from Sumatra and Guatemala that Starbucks stores will sell from Nov. 4 until the limited supply runs out. It will be available in 1-pound bags for $10.95 but will not be sold as a drip coffee in Starbucks stores.

Starbucks’ popular Christmas Blend, which has been around since the mid-1980s and contains aged Indonesian coffee beans, will be available this year beginning Nov. 28.

Douglas plans to serve Thanksgiving Blend as the house coffee at all his restaurants in November, and it will accompany turkey dinner on the menu at Palace Kitchen.

The collaboration surprised Douglas in a couple of ways. For one, the coffee is not as heavy on Sumatran beans as he initially expected.

“I was thinking big and fat, but that’s like putting a big fat chardonnay with a crab,” he said.

Source: SeattleTimes

Starbucks dumped by their ad agency

admin — Wed, 08 Oct 2008 21:04:28 +0000

Starbucks’ ad agency, Wieden & Kennedy, has quit the account. The story on Gawker is pretty detailed, and it sounds like W & K was just fed up and Starbucks sucks as a client.

During the four years that Wieden & Kennedy, known for creative and effective ads for marketers such as Nike and P&G, toiled for Starbucks, a coffee chain built on word-of-mouth and grass-roots marketing, there were a lot of disagreements, which ended in unusual (for a large client like Starbucks) quit of ad agency.

“Wieden always felt like it was a one-way relationship,” said an executive familiar with the matter. “They felt like they presented a way to drive the brand forward, and Starbucks wasn’t receptive.” The agency wouldn’t comment beyond its statement from Mr. Wieden in announcing the resignation: “There are times when it just makes sense to part ways with a client,” he said. “In this case, this seems to be the best decision for both parties.”

Executives with knowledge of the situation said Starbucks was simply a very frustrating client for Wieden, an agency that other marketers have described as unusually honest in its communication with clients. Other agencies that have worked with Starbucks have felt frustration with the marketer too. Rich Silverstein, co-founder of Omnicom Group’s Goodby, Silverstein & Partners, which did two stints representing Starbucks, said much of the fault lies with the mercurial Mr. Schultz. “He does not appreciate advertising,” he said. “Any agency that comes in has one foot out the door already.”

Starbucks spokeswoman Lara Wyss said that such a view of Mr. Schultz’s marketing philosophy had no merit. “Howard understands the value of the marketing mix to support the brand,” she said.

Taking reigns
Mr. Schultz returned to the troubled company’s helm in January and quickly assembled a team of advisers, many of whom he had worked with for more than a decade. One such executive is Harry Roberts, chief creative officer, who has known Mr. Schultz for decades.

By a number of accounts, Mr. Roberts has taken on wide-ranging responsibilities during the past year. Under his reign, it has become commonplace for the same project to be assigned to multiple agencies on a competitive basis, according to several people familiar with the matter. “I don’t just swim in one lane,” Mr. Roberts said in a meeting last week.

There have also been deep cuts in the marketing department, as part of a plan to eliminate 1,000 nonstore jobs, and a few high-level marketers that were contacts with the agency have left Starbucks in recent months. The company declined to comment on what role, if any, Mr. Roberts has played in the recent departures.

Unrest at Starbucks is hardly new. The company has been described as a difficult client for many years. It’s infamous for greenlighting projects and later withdrawing approval. For instance, the chain made its TV-advertising debut during the last holiday season, but a broadcast campaign had been under way at least once before.

Case-by-case
Moving forward, it’s expected that Starbucks will work with a handful of agencies on a project basis rather than designating another agency of record.

“It’s not like we’re starting from a dead stop,” Starbucks CMO Terry Davenport said last week, noting that the chain has been impressed by work done for its ancillary businesses.

A spokeswoman wouldn’t say which agencies are on the roaster’s roster. But the list is known to include DraftFCB, which handles Starbucks’ grocery brands — a collaboration with Kraft Foods — and BBDO and TracyLocke, which have worked with Starbucks via its various partnerships with Pepsi. (BBDO also handled the launch of Starbucks Coffee Liqueur, which was marketed by Beam Global Wine and Spirits.) TracyLocke has another in with Starbucks by way of client Hershey Co.

Absent a traditional marketing strategy, the company’s plethora of licensed products plays a crucial role in bootstrapping the brand, although all products, including bottled Frappuccino, may compose only a single-digit percentage of revenue.

Source: Adage.com

QuickOrder: Starbucks ordering on iPhone

admin — Mon, 06 Oct 2008 11:21:11 +0000

Multimedia designer, Phil Lu, has created some mockups of an iPhone application that he calls “QuickOrder”. The series of images show how oa systrders with iPhone might work at Starbucks. Its pretty cool.

In an application with the U.S. Patent Office filed on Dec. 20, the Cupertino, Calif.-based computer and gadget company described a wireless system that would allow customers to place an order at a store using a wireless device such as a media player, a wireless personal digital assistant or a cellphone.
The system would, for example, allow customers to order a drink with the press of a button on their iPhone which would then notify them when their order was ready. The Forbes article suggests that this may put Apple’s partnership with Starbucks in a new light.

Apple has already integrated iTunes song purchasing closely with Starbucks. iTunes and iPhone users can already purchase playing music at Starbucks with the tap of a button:

Say you’re in line at Starbucks. Just click on your iPhone and order what you want. Then just point barcode/semacode at scanner and voilà: Your order is on way….

Starbucks Idea: Vote for your Starbucks

admin — Wed, 20 Aug 2008 20:24:27 +0000

So, pull up a comfortable chair and participate in My Starbucks Idea. We’re here, we’re engaged, and we’re taking it seriously.
This is your place. Let’s see where we can take it together.
— Howard Shultz

Starbucks has just launched My Starbucks Idea, platform that lets consumers shape the future of whole company. This new effort arrived just in time, as its brand and experience turned bland, trading quality and connection with consumers for explosive, world domination aimed growth.

My Starbucks Ideas is a very positive move for Starbucks for two reasons.

1) Starbucks’ communication department tried to convince me last year that the company doesn’t need to invest in engaging its consumers online because it already touches millions of them in person every day. Wrong. According to the 2007 National Consumers League study, 79% of consumers are actively seeking information about companies’ social responsibility, looking online first. The conversation was simply happening online without Starbucks.

2) Starbucks’ focus on growth traded the authenticity of the brand and openness to feedback for higher, blander sales. Rather than listening to them, the company made consumers feel like activists for their concern about the environmental impact of their indulgences.

Social web technology is finally connecting people and companies again, as we connected with local store owners before the rise of globalization, big box retail, and the low, low prices we demanded. For example, the local coffee shops I frequent in San Francisco have listened intently to their customers, adding bins for recycling and compost, using biodegradable straws and to-go cups, serving drinks in real cups, implementing loyalty punch cards, and installing free wi-fi, because that is what consumers wanted. Meanwhile, Starbucks was building stores, serving blander coffee and experiences than ever before. Is it any wonder why Starbucks isn’t Wall Street’s favorite new toy anymore?

Yet, if Starbucks listens to what its customers and employees are saying, its dreams of a ubiquitous, Utopian experience that enriches lives might actually come true.

Confessions Of A Starbucks Barista

admin — Sat, 09 Aug 2008 09:54:50 +0000

Jesse, who has worked at Starbucks for almost a year, has written a mythbusting “Buyer’s Guide” that will help you in your quest to save money when ordering your favorite Starbucks beverage. Our favorite tips? Frappucinos are a rip off, there’s no free ride at the drive-thru, and ordering a latte with chai syrup is cheaper than a chai with espresso

I've been working for Starbucks for almost a year, and my love for coffee and free coffee beverages are what keep me there. As much as some people may complain, Starbucks does offer a high quality coffee, even if it comes at a premium price. Here's my take on some tips for ordering at Starbucks in order to keep prices low and tastebuds happy. I'll also try to bust down some myths and educate about basic coffee principles.

Starbucks Myth #1

Starbucks coffee tastes burnt.

While it’s true that Starbucks does tend to roast their beans a bit darker than most other coffee places, what you’re tasting isn’t actually “burnt.” The Specialty Coffee Association of America says that standard brewing should have two full tablespoons of coffee for every six ounces of water. Most other coffee shops and restaurants will barely even use half that much coffee. The coffee then ends up tasting much stronger than what most casual coffee drinkers are used to. Choosing the mild coffee of the day isn’t really going to help if you think Starbucks coffee is stronger. The mild coffees tend to have what’s known as a stronger acidity. Acidity refers to the sharp taste on the tongue and how long the flavor of the coffee lasts - not the actual PH balance. If you don’t like the taste of burnt coffee, you’ll probably shy away from Latin American and African coffees which have a higher acidity.

What you probably should order is an Starbucks Americano. An Americano is espresso and hot water to dilute it to the flavor strength of brewed coffee. It’s milder in body and won’t seem as “burnt.”

As far as price goes, standard coffee is the cheapest that you’re going to get at Starbucks. It does seem to be a bit more expensive that other coffee shops, but remember - they’re using more actual coffee. An Americano runs more expensive because making the drink takes more man hours. We’ll break down the cost of espresso later.

Myth #2

Instead of paying higher amounts for iced coffee, I can just buy regular coffee, ask for a cup of ice, and pour the coffee over that.

Iced coffee is brewed double strength before it’s poured over ice in order to give it the regular strength of coffee. If you just buy a regular cup of coffee and pour it over ice, you’re getting extremely week coffee that’s half as strong as it should be.

Myth #3

Going for the Venti espresso drink is a better value.

A Venti drink is twenty ounces. It has two shots of espresso in it. The Specialty Coffee Association of America says that there should be one ounce of espresso for every eight ounces of beverage. This means that there are eighteen ounces of milk for two ounces of espresso - that’s a lot of milk! The only drink sizes that meet the SCAA regulations are the eight once Short that has one shot and the sixteen ounce Grande that has two shots. The tall is twelve ounces and also only has one shot. Because Starbucks follows SCAA guidelines strictly, they won’t put two shots into a tall or three shots into a Venti because that technically would be too much espresso.

What people don’t realize is that Starbucks even offers the Short. Back in the day, there were only two sizes - short and tall. As our American appetites grew, so did the size of our drinks. But the short is actually a lot closer to the size of what a traditional latte would be. It’s also a couple dollars cheaper than going for the Venti.

Now my personal preference is one ounce of espresso to every four ounces of beverage - but I like my drinks strong and I get them for free.

The Truth About Espresso and the Great Frappucino Swindle:

A few years ago, Starbucks made the jump to automatic espresso machines. Standard procedure for pulling a shot of espresso requires grinding into the portafilter, tamping it down, locking it into the espresso machine, and pressing the button to start the water. The Starbucks machine does all of this with the touch of one button - it also stores the coffee grounds as compressed pucks in a drawer that needs to be emptied only twice a day. This saves a lot of time for baristas, especially when there’s a long line. The shots themselves are very good for an automatic machine. But these machines cost about ten thousand dollars apiece compared to about three thousand for a quality manual commercial grade espresso machine. That’s a lot of money to recoup at about two dollars for a double shot. Not to mention that Starbucks also pays its employees a higher wage than most coffee shops because they don’t make as much tips working at Starbucks. The cost of operating a Starbucks is astronomical. But the quality is there.

Even with the cost of these machines, Starbucks doesn’t charge much more than your local coffeeshop. In fact, sometimes it’s cheaper. And the way they recoup these costs? Frappucinos. A Frappucino is a blended coffee beverage that most people find quite tasty. But what the hell is actually inside it? Standard Frappucino recipe relies on using a Frappucino Base and ice, along with a pump of the flavor syrup of your choice. And the Frappucino Base? First you add instant coffee to water. Then you pour in a box of Frappucino Mix, which lists its first ingredients as “Milk Ingerdients.” The amount of high fructose corn syrup and strange processed food materials in these things is scary. And the best part? They will run you about four bucks a piece. It doesn’t cost barely anything to make one, but you better believe that they’re going to overcharge you for it. And because the Frappucino base is already extremely sweetened, the recipe only calls for one pump of syrup even though you’ll be charged the full thirty cents. A Tall drink usually gets three, a Grande four, and a Venti gets five pumps.

If you like cold drinks, try an iced latte or a mocha. It won’t taste as sweet, but here’s the best part - if you pay for syrup, you can ask for as much as you want as long as it’s only one type! Standard Starbucks practice is to charge for each type of syrup used not how much of each. You can avoid this by asking for half and half - if you like the taste of Vanilla and Hazelnut, ask for half Vanilla and half Hazelnut - this will help from being overcharged.

Other tips for money saving:

Soy milk costs more. Organic milk costs more. They’re tastier, but also cost more.

If you like the taste of espresso with a chai latte, ask them to ring it up as a latte with chai syrup added instead of a chai latte with espresso added. Espresso costs about fifty cents to add a shot while syrup is only thirty cents. If you get a Grande latte, you already get two shots and only add thirty cents for the chai syrup. If you get a Grande chai latte and add two shots, you’re adding about a dollar to the drink.

Try to do the math - sometimes it’s cheaper to ask to be rung up as a larger size instead of a small size with an added shot. It never hurts to ask - Starbucks employees are people too and probably don’t want to overcharge you.

Don’t use the drive-thru. If you use the drive thru, every single modifier gets added on the computer, otherwise your drink won’t be made right. Usually asking for soy milk as a creamer is free, and you can ask them to put whipped cream on anything for free as well, but if you go through the drive-thru you bet your sweet bippy you’ll get charged for it.

And finally - try it without a flavoring! Milk is inherently sweet because of lactose and only gets sweeter once steamed. You don’t always need a vanilla latte and after ten drinks it’s like you’re getting a free Tall latte! Once you get used to the flavor of espresso and milk, then you’re one step closer to order regular brewed coffee which is as cheap as you go.

However, if you’re a tea drinker you’re in luck. Hot and iced tea are just about the same price as coffee.

Starbucks: More closures despite strong protests

admin — Fri, 25 Jul 2008 17:19:56 +0000

Starbucks’ decision to close approximately 600 underperforming stores elicited a round of protests from some of its customers, but the company is moving forward with its plans.

From YouTube posts to a SaveOurStarbucks.com Web site, lobbying from local officials, and at least one employee protest, many want the stores to stay.

Starbucks, however, says the closures are necessary to rein in spending, boost the bottom line, and bring a long view to building up customer satisfaction, which Howard Schultz, the company’s founder and CEO, noted in a statement when the closings were announced July 1.

“In January, we committed to transforming the company through a series of critical and strategic initiatives to improve the current state of our US business, and build the business for the long term,” he said.

Bridget Baker, communications programs manager, corporate communications for Starbucks, told PRWeek, via e-mail, that the company was “humbled by the support we’ve received from our partners (employees) and customers regarding the closure of our stores.”

Baker noted, though, that the closings are final, pending operational and contractual factors and events.

“We see the response from customers as a demonstration of customer loyalty and the emotional connections [they] have with the… brand, Baker said. “This validates our long-term opportunity and reiterates that the Starbucks Experience simply cannot be duplicated.”

Starbucks’ earnings reflected its struggle in the current economic climate, with the March 30 second quarter results falling approximately 28% from the year-ago period, while store operating expenses rose. The stock jumped 3% after the closures were announced.

“We recognize the impact this announcement has had on the communities where we operate and value the feedback,” Baker added. “We are working to address the questions we’ve received.”

The SaveOurStarbucks.com site was created by Paul Konrardy, COO of LoudClick.net and a regular customer in Richfield, MN, after the announcement. While Konrardy’s local store was not closed, he says his site provides Starbucks’ fans with a place to post their opinions about the closings. It also offers links to petitions that were started to save local venues across the US.

Konrardy noted that within one 36-hour period, there were about 3,000 page views, and the site got attention from various media, ranging from NPR to FoxNews, though he has not yet heard from the coffee retailer.

“I’m pretty gobsmacked by it all,” Konrardy said.

Starbucks’ customers also channeled their concerns to a “Save Starbucks Paris, [TX]” MySpace page, as well as numerous pleas for Starbucks’ to reverse its decision on the company’s corporate site, MyStarbucksIdea.com.

Starbucks works with its AOR Edelman and a number of other agencies focused on specific regions, like Cone in Boston, The Frause Group in Seattle, Airfoil in Detroit, and rbb PR in Coral Gables, FL.

Edelman deferred its comment to Starbucks.

PR pros noted the attention could give Starbucks a unique opportunity - if handled properly.

Carrie von der Sitt, SVP at GolinHarris, said that Starbucks needs to properly leverage buzz so attention doesn’t turn sour.

“You’ve got people working as brand advocates and trying to rally behind an institution that’s a part of them,” von der Sitt said. “It’s important you find a way to harness that loyalty [and] demonstrate how much you value their commitment to your brand and how significant their involvement is in the future of the company.”

With such financial burdens, consumer efforts probably will not have much impact on keeping local stores open, said Andrew Silver, North American consumer practice leader for GCI Group.

“Downsizing is a reality of the business… [However], we are in the age of consumer empowerment… Starbucks needs to acknowledge consumer passion for their brand and find an outlet for that passion, while still doing what’s right for their business to maintain growth and profitability,” Silver added. “That’s a hard balance to strike.”

Starbucks to Close 500 More Stores

admin — Wed, 02 Jul 2008 10:12:44 +0000

Starbucks will close 500 more locations in the U.S. and cut 7% of its work force.

The pullback is a sign that the Seattle-based coffee giant is continuing to see weak sales as high gas prices and other pressures on consumer spending prompt Americans to cut back on extras.

It also shows how badly the specialty-coffee business is struggling just as mainstream companies, such as fast-food giant McDonald’s Corp., are beginning to invest heavily in it.

Starbucks said the 500 stores just slated for closure, as well as 100 others it announced plans to close earlier this year, will shut down in 2008 or early next year.

The company said it will eliminate as many as 12,000 full-time and part-time retail positions in connection with the closures; some baristas will get jobs at other stores. Starbucks said it had 172,000 employees as of last year, the latest count available.

Starbucks didn’t disclose which of its about 11,000 U.S. stores it will shut, but said the affected stores are spread across all major U.S. markets. About 70% of them have opened since the fall of 2005, it said.

Workers will find out whether their store is closing by the middle of this month.

The closings are bad news for commercial real-estate developers who have relied on the cachet of Starbucks to attract other tenants. Starbucks said the sites earmarked for closure include those that aren’t profitable at the moment or aren’t expected to provide the company with acceptable returns on its investment.

During the last fiscal year, Starbucks opened about 2,500 new cafes across the globe, or about seven outlets per day. The purpose of its rapid expansion was to boost sales growth and siphon traffic away from some of its stores where long lines were driving away customers.

Also fueling the push was company research that showed people sometimes weren’t willing to cross the street to buy a cup of coffee. But the density of Starbucks stores in places like New York and other large cities turned the chain into a symbol of ubiquity, spawning countless jokes.

Last year, as Starbucks’s sales began to soften, it became clear that the company’s expansion was cannibalizing its sales in a way that was threatening the chain’s success, as well as causing the quality at its existing locations to slip. Analysts have said that Starbucks lowered the bar for choosing new locations in recent years.

The closures will “take pressure off some of the stores” located in the same immediate area, said Pete Bocian, Starbucks’s chief financial officer.

Starbucks has been struggling to attract customers amid the slowdown in consumer spending and increasing competition from other coffee and restaurant chains.

Longtime Chairman Howard Schultz took over as chief executive in January to revive the company, whose stock had lost about half its value in the previous year. But the company’s shares have yet to rebound.

In May, activist investor Nelson Peltz’s Trian Fund Management disclosed it had taken a stake in the chain, putting pressure on Mr. Schultz to improve results.

Mr. Schultz has been pushing through changes, including the introduction in April of a new, milder daily brewed coffee that the company says has helped boost Starbucks’s drip-coffee sales. But, in doing so, he has alienated a small group of loyal Starbucks customers who prefer the strong coffees on which the chain built its reputation.

The store closures are likely to please Wall Street, which has called for more shutdowns and swifter spending cuts at the company. During the next fiscal year, which starts in September, the company plans to open fewer than 200 company-owned locations in the U.S., down from its earlier forecast of 250.

Starbucks has said that it is shifting some of its expansion abroad, where markets are more promising. We hope one of promising markets will be Slovakia.