The Starbucks Brand is Struggling
OK, This has nothing to do with the bad experience I had in Starbucks yesterday - or indeed should I say things I have observed pretty regularly lately. I have noticed a definate decline in their customer service levels. Yesterday I had to wait 10 minutes for a drink - after having to remind them. I was then offered a free coupon - and after the staff searched high and low they could not find them. It reminded me of how Starbucks staff would bend over backwards for you 10 years ago.
Well this personal experience aside I read today that they are closing 61 of 87 stores in Australia. This came after the news that they are closing 600 stores in the US.
Perhaps this is an effort to get their affairs in order after a period of expansion that seemed excessive. Time will tell as to how successful they will be.
July 31st, 2008 at 8:49 pm
The economic condition is resulting in less disposable income and businesses like Starbucks, restaurants, car washes are all taking the heat. Neat thing about heat, it often purifies and what it leaves behind is better and stronger than before….Or it leaves scorched earth and ashes.
How the leadership of Starbucks adjusts to the challenges their buyers face will determine their result.
My guess is Starbucks will come out of this stronger. The have a history of tuning into their market, creating breakthrough experiences, and authentically connecting. They have been there, done that, and it’s much easier to reconnect to a culture focused on customer experiences than to create a new one.
My guess is their CEO is in locations asking questions. Those locations will be malls and grocery stores, and not his stores. He will focus on how to appeal to the potential customers who could buy, but are not shopping for his product, and then those shopping for his solution, and lastly his current customers.
Mark Allen Roberts
http://www.tunedinblog.com/blog/pragmatic-marketing.html