Starbucks' wall of tearor...

I recently took my daughter Christmas shopping and we took a pit stop at a Starbucks Coffee shop in Katy Mills Mall. The service was prompt and the coffee was fine. Honestly, no better and no worse than McDonald’s. But a bit more expensive. Unfortunately, the Starbucks we visited wasn’t managed by Starbucks, but, rather, Aramark.

In The Beginning, There Was Coffee. And It Was Good.

Let’s face it, when it comes to coffee experiences, Starbucks is the standard. They do wonderful things with java from adding mocha to pumpkin spice. I love the smell of freshly ground beans and brewing coffee that greets you from the moment you opened the door. Starbucks has the perfect atmosphere where your mind can wander into the right places. Whether it’s reading the Wall Street Journal or pounding away on your laptop on a report or just thinking.

QSR’s Speed Things Up

But things are changing and Starbucks has panicked. Enter McDonald’s and Dunkin’ Donuts (cue the Darth Vader theme music). How can low-end, quick-service restaurants (QSR) brands possibly have taken away Starbucks’ mojo? Starbucks allowed both of them to change the conversation from “earthy, relaxed experience” to “speed and convenience.” Starbucks wasn’t built around those values, but they felt the need to change to go up against Mickey-D’s and the Double-D on their turf.

One Venti Mistake After Another

So, Starbucks made and has continued to make huge missteps when it comes to their brand. First, and the biggest, many stores have stopped grinding their beans in-store, sacrificing the demonstrative care and appreciation for their coffee. There’s no aroma of freshly ground beans that captivates customers as they’re waiting in line. Sure, now you can get your coffee faster, but you’ve lost the appreciation of smelling it before it’s brewed.

Grinding coffee beans releases their aroma adding to the coffee making and drinking experience.

Aged To Imperfection

Second, they’ve let their stores age. Five of the last six Starbucks I’ve visited have shown their age with dented and scratched furniture, torn upholstery and wallpaper, stains on the walls–yes, the walls– and carpet and trash on the floor. I guess when you don’t care as much for the product you sell (by not grinding it fresh), you don’t really care for the place you sell it. It trickles down.

A Worthy Adversary: Sanka

Third, and most recently, they started selling an new instant coffee product called VIA. Instant coffee?! Isn’t that Sanka’s turf? Why would Starbucks compete with Sanka? In the mid 90’s, Pepsi launched Diet Pepsi Clear. It had encouraging results until Coke launched Tab Clear, a line extension of a worn-out diet soda brand popular in the 70’s. Coke positioned Pepsi Clear as just a clear equivalent to Tab. It was the ultimate sacrifice fly in branding–launching a dud product to position your competition. It was a successful move by Coke. Starbucks did it to themselves. Why would you degrade your brand equity with a Sanka-killer? It makes no sense. Again, you’ve sacrificed experience at the alter of speed and convenience.

Faux Starbucks

Fourth, Starbucks has allowed foodservice management companies to manage some of their stores. These companies always fall short in delivering the full experience. Sure, they may be trained, but they’re not ambassadors of the brand experience and how to nurture it. The paychecks of their employees say “Aramark” or “Sodexho,” so that’s where their heart is. I understand how much money can be gained by putting a Starbucks in a crowded mall food court, but not at the  sacrifice of its brand.

Starbucks Acts Like A Gorilla

And last, their ad campaign. These chest-beating newspaper ads are rediculous. Not only did the campaign fail to acknowledge that Starbucks had slipped, but they had an arrogant tone. They denied that there were any problems and that it was the readers’ fault for not seeing how great Starbucks still is. Puh-lease.

Starbucks’ Four-step Program

So where do they go from here? Here are some suggestions on reviving Starbucks:

1) Break out the grinders again. Your value proposition has suffered and this would tell your customers that you’re more than an instant cup of joe. It will also make hanging out in Starbucks more of an experience again.

2) Limit the instant coffee to retail. Don’t sell that crap in your stores. It’s just stupid.

Starbucks versus Sanka: You decide.

3) Invest in your stores again. They’re weathered, old and need a make over. Bad.

4) Close any store where you don’t control everything. From hiring employees to maintenance. No matter where your store is, it reflects on your overall company. Consumers don’t have time to research.

5) Redo your advertising or stop it all together. Just do what you did to bring you to the dance and let the good vibrations spread. Invest in public relations and community efforts because that’s what the brand is all about. If you do crank up the ad machine again, be forthright with how badly you’ve screwed up a good thing and how you’re going to get back to what brought you here in the first place.

Hope For Better Coffee

Starbucks is in decline, but there’s still time to rescue this brand. People like me, who enjoy a great cup of coffee in a cool place, are in mourning. I don’t want to hang out in McDonald’s. It’s not the same. Besides, my laptop sticks to the table.

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