Monday, June 21, 2010

Drinking Coffee at Starbucks

Kate Couric began the interview with Howard Schultz, CEO of Starbucks by asking him why he didn't call coffee sizes commonly like other people did (small, medium or large) calling it “doppio espresso” and other. He said that visiting Italy once he just saw those names and got the sense of that. He also said that Starbucks customers have ordered coffee calling it by thousand of different ways.

Than Kate asked Schulz about his financial problems. Because of the crisis or some other reasons Starbucks had to close 600 coffee shops around the United States and to cut 1000 jobs. Schulz tought it wasT related to Starbucks very fast growth and some mistakes that were made while the company was developing. He also add that if they had known that there would be this problem with economy they would have gone by different way.

The next Couric's question was about the Starbucks business plan. She wanted to know if they had a plan for the current “severe recession”, and Schulz answered they didn't have because the Starbusks was “recession-proof”.

The last question was about bringing prices down. She asked if Schoulz was planning to reduce prices. His answer was interesting; he said Starbucks has sold more than a cup of coffee. Anyway he said they would have offered discount cards and some less pricey coffee, but he has regretted that they were buying more efficient espresso machines and were replacing coaches to sale more and faster because the customers had blamed on Starbucks service speed. He also added that his clients wouldn't notice if he changed something like the transportation costs or waste reducing because people had came to Sturbucks for human communication.

Reading this article I had very different feelings. At first, I should mention that I am a very sophisticated coffee drinker, so I can't drink Sturbacks coffee, and can't even call these drinks coffee, so I was thinking that it is not weird that Starbucks is getting less popular. The old roasted and low quality coffee, which might stay in the shop for months or even years, a burned until bitter test milk and espresso that is being cooked against all standards don't make the coffee good. A lot of vanilla, chocolate, banana and other souses are used to give some a little nice taste to a coffee, but in reality they only make it sweet. This coffee has so many calories that you shouldn't eat all day after one drink if you are concerned about your weight. The only good point about Starbucks, which by the way made its coffee popular, is the speed of making coffee. I think now, when Starbucks is so widespread, Schulz needs to think about changing the idea of his company on something different. For example he might try to make an accent on healthy organic coffee and fast but well made coffee. He should pay attention to quality but not quantity now. Coffee that is roasted no longer than month ago and competent coaches who monitor barista's work are able wholly change the current working process what will attract more customers who are concerned about quality but not the size of cup and taste of sugar instead of taste of coffee. Maybe if Schulz had paid attention to these points the problems with his company would have been solved or reduced.

I also want to add that even though I don't like Starbucks' coffee and don't go there I like Schulz's attitude to some other things. I was impressed by his help to farmers, AIDS victims and specially by his “responsible capitalism” regarding all his employees. I think it says something about his personality. Plus I loved his phrase “if you are entrepreneur, you've got to dream big and than dream bigger.”

No comments:

Post a Comment