What does Starbucks have in store now??
As some of you may have already seen, Starbucks has plans for tomorrow. With Howard back at the reigns it seems he is pushing to bring the original ideals of the very first Starbucks stores back. As you can see on their website they are promoting a big change tomorrow, 04.08.08.Thru a couple sources, I have read online that they will be implementing their original logo and original brown color scheme on some in-house print materials and cups. Have also heard they are planning on including the roast dates on coffee and I imagine espresso whole bean.
Another release I have heard is in the works is their "Pike Place Roast" which I imagine is a new house blend of sorts? Supposedly, with this "new" coffee they also plan to implement a shorter (30 minute) holding time for their brewed coffee.
The other day here in Portland, I walked by a Starbucks in a busy neighborhood here in Portland and was a bit shocked to see this sign on each of the doors:
This is at a location that is a block away from coffee bars including Peet's, Caffe D'Arte and numerous Stumptown accounts. Are they serious? They have their two super automatic machines pulling the "best" espresso in Portland?
So what does all this mean? Obviously, we are seeing a recognition from Howard, that the quality based independent retailer is major competition. For years indy coffee houses have been raising the bar with education, quality coffee, and consumer awareness. Another aspect they are planning on focusing heavily on is customer loyalty. With substantial offers to card holders, the big green also sees the huge value in developing regular customers, like us independents try so hard to do.
This is all in addition to their purchase of the Clover, which I have heard is being called "fresh pressed" coffee in a couple cafes in Seattle, and can be ordered in ceramic cups, while the coffees being explained in detail to order.
I plan on following what goes on tomorrow, the next week, month, etc. very closely. As this industry becomes more and more competitive, it will be so key for all of us to have our finger on the pulse of where we are headed. Many of us are already doing many things right, but to succeed in many markets, everything must be perfect.
I am interested in hearing what others think about how this will effect the short and long term future of the industry. Can Starbucks really reposition themselves as the "neighborhood" coffee bar, which is quality driven?
- Matt
Comment
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Comment by Aaron Meza on April 7, 2008 at 2:56pm
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In the long run, this will be a good thing for independent cafes.
With Starbucks' volume and number of locations, they can never possibly be as adaptive as an independent coffee house. Independents have the ability to recognize what their local customer base really cares about. That marketing edge could be { fair trade, organic, fresh roasted, press pots, high end chocolate, wine, beer, etc. }. Every local market responds better to a particular niche - you can capitalize on that.
I also hope that these changes help independents realize that they can charge more for a better coffee. If Starbucks is selling 8 oz of Clover-brewed coffee for $2.25, then an independent serving higher quality fresh-roasted coffee should charge more. Starbucks' is going to have to do all of the leg work and marketing for charging a higher price point, so you should ride the coattails of their marketing effort.
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Comment by Matt Milletto on April 7, 2008 at 12:07pm
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a link on their site, from today, telling about the new Pike Place Roast.
"In recognition of this monumental event, Howard Schultz, chairman, president and ceo, will join partners (employees) and customers, beginning in New York, to celebrate a passion for coffee in a simultaneous, nationwide, coast-to-coast, coffee tasting conducted by Starbucks coffee experts." (taken from Article)
Is it a blend? is it a line of S.O. coffees? It seems that the biggest difference I can tell is that it will be served fresh, hand scooped, and brewed which will increase the theater aspect of the traditional coffee house experience. Gee ... what a revolutionary concept! :)
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Comment by Jack Davis on April 7, 2008 at 11:44am
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I was just telling a cafe that I'd like to see the mermaid return to her original form, nipples and all. The purchase of Clover is a bit of a bummer (ours is now an orphan) but I think it'll open up the marketplace to more new ideas in the long run.
As far as becoming the "neighborhood" coffee bar, sbux has a big hill to climb. In the beginning, they did a lot of people a service by educating the general population about coffee in general, even though it was "their" way (caramel macchiato, anyone?). Now that there are more shops doing a better job than sbux ever did, they've got to get their mojo back in a big way. There's also the whole issue of the golden arches and dunkin donuts.
Reacting to the market, indeed.
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Comment by Pablo Castaneda on April 7, 2008 at 9:55am
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hey Matt:
i think they are reacting to the changes of the market, they have realized that people is learning more and more about coffee not only as a simple beverage. They do have the resources to get back to the neighborhood coffee bar, the question is would PEOPLE trust them to do so since they are noticing other places have better coffees? One way or another they are reacting to the market.
Good article compadre.
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