Sunday, August 17, 2008

starbucked by taylor chuck (2007)



“We changed the way people live their lives, what they do when they get up in the morning, how they reward themselves, and where they meet”
- Orin Smith, former Starbucks CEO

This is the book for (a) anyone who entertains thoughts of opening a coffee shop; (b) loves Starbucks; (c) hates Starbucks; (d) captivated with the romance of coffee; (e) inordinately spends more time in cafes than his/her actual place of residence; (f) fascinated with statistics concerning the coffee industry; (g) steeped in coffee history and trivia; and (h) all of the above.

Taylor Clark prefaces his book like it was a dissertation. He explains: Starbucked is divided into two sections - In part one, we investigate the mystery of why Starbucks and coffee culture gripped America so tightly and so suddenly, and we examine some related curiosities along the way. Why did Seattle become the planet’s coffee epicentre? Why did Starbucks pay a firm to hypnotize its customers? Why doesn’t Starbucks have any noteworthy competitors? Part two explores the ethical issues that swirl around the company as it pursues its goal of global domination. Does Starbucks prey on independent cafes, as critics claim? Should we feel complicit in the plight of impoverished coffee farmers each time we buy a vanilla latter?

On a related note, Time Magazine has reported (21 April 2008) that Howard Schultz, self-proclaimed coffee messiah, has taken the position of CEO again in Starbucks after he relinquished the post in 2000 for a seat on the board (but did he ever leave Starbucks? Schultz’s office was right next to CEO Jim Donald). This is amidst growing complaints from customers, decrease in 40% of its stock price the past 12 months, and comparable-store sales turning negative.

Uncle Howie is already shifting gears. For starters, he has scrapped the breakfast sandwiches (they overpower the scent of coffee), reporting of comp-store sales (too much focus on numbers means less focus on customers), the verismo (the old machines gives baristas less control over the steaming of milk and blocks their view of patrons), cluttered counters (the mishmash of stuff distracts from coffee), and stores every corner (unwieldy US growth will slow, the company will still push ahead overseas).

And what’s in? Grinding beans in stores (will restore the coffee aroma). MyStarbucksIdea.com (a site invites customers’ gripes and suggestions), the mastrena (the barista can be seen over this new espresso machine), Conservation International (the group will certify where beans come from), and loyalty card (free drip refills and latte extras for repeat customers).

Why did Schultz return to Starbucks? Uncle Howie, the savior of the coffee universe, proclaims, “I came back because it’s personal. I came back because I love this company and our people and I feel a deep sense of responsibility to 200,000 people and their families.” Ahem (the decrease in Starbucks’ stockprice has resulted in the corollary decrease of about US$400 million in Schultz’s worth).

As the Starbucks mantra goes, “Onward Howard!”

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