Starbucks Experience is a Myth

A friend of mine recently asked if I thought selling bagged Starbucks coffee in the discount chain Costco would hurt its brand image. I quickly answered yes but said it could be argued both ways.

What a waffle! I wasn't sure so I went out and bought "The Starbucks Experience" book by Joseph Michelli.
I had a perception that Starbucks was this special kind of place—Howard Schultz, the entrepreneur who joined the company in the mid-80s, said his idea was that people would enjoy getting a quality cup of coffee in a place like a European coffeehouse where you could hang for a while.

Early in the book I was informed that Starbucks has 11,000 stores in 37 countries with 100,000 employees. I also learned that their low paid employees are called partners. That's slick.

Fifty-to-hundred pages into the book it dawned on me that Starbucks isn't so special—it's just another mega fast food chain—albeit one that is well run.  As I shifted my thinking, I also started to mentally challenge the myth about the special Starbucks Experience. Was their coffee really that great? No. Peet's is better. And good restaurant coffee is even better yet.

Then I figured out that Starbucks doesn't really sell coffee—it mainly sells drinks that don't taste like coffee. Yeah, but how about that European atmosphere? Well, if standing in long lines to get a drink in a paper cup on your way to work is European then I don't want to go to Europe. The same goes for getting my morning coffee from their drive-through store.

Howard Schultz recently commented in a magazine article that Starbucks has lost its soul and that they don't even grind the beans in the store anymore. It appears I made the right decision in believing that extending the brand into a product – not an experience would hurt the brand. A small hurt, but good branding is all about consistent alignment.

If I wanted to make my own coffee there's a lot of better choices. Every time I reject Starbucks on the shelf it's a mental mark against Starbucks the shop. To validate my POV – Howard Schultz noted on brandchannel.com that "our product is not sitting on a supermarket shelf like a can of soda." Well it is now!

P.S.
I do recognize if you have extra time the limited seating is a good place to bring your laptop or iPhone.

P.S.S.
With the new addition of breakfast sandwiches like egg sausage-McMuffin, Starbucks is becoming more like McDonald's everyday. I expect french-fries soon. If Howard was still in charge this would have never happened, and the Starbucks Experience wouldn't be a myth.

Comments

[Cassidy]

Interesting take on the Starbucks Experience. I agree on the most part with you. Starbucks is a good place to go with your friends and enjoy a nice chat, but if you're looking for quality coffee in a so-called European setting, Starbucks is not the right place to go.