On July 18, 2007, The Wall Street Journal had an article about Starbucks’ plan for growth. Aggressively, its 11,000 locations would nearly double into 20,000 over the next four to five years. I guess if any company was going to do it, might as well be the company that has the easiest access to mass quantities of caffeine.
Still, I was highly skeptical of the idea and I went straight to my neighborhood baristas for their first-hand opinions: “Wouldn’t you like it if there was one across the street and you wouldn’t have to make a u-turn every morning?” Convenience! Of course! America’s favorite commodity. But not exactly the selling point I figured for America’s favorite coffeehouse.
On Christmas, I decided to start some coffee talk: “I think Starbucks is starting to lose it.” It was the wrong time to start this conversation because an hour later, my cousins apprehensively handed me their gift of a Starbucks mug.
Something was happening to Starbucks though. I couldn’t define it but it wasn’t the same.
On Tuesday, January 8, 2008, Starbucks evidently saw it was beginning to burn out too. They ousted the current CEO for a former one and switched agendas - slow down the new store openings and focus on improving the current customer experience.
These days, CEOs and companies rarely seem to take their original flavor into consideration when they have the ability to take over the world. We’ll be in that position one day and the choice of what to do on top isn’t limited to nutmeg and whipped cream. As it turns out, sometimes the risk that might gain you more isn’t worth the cost that might leave you less. And ultimately, at least for the starting to struggle but smartly staying safe Starbucks, the buck stopped there.
Inspired by “Starbucks Adds Key Post Amid Growth Plans” by Janet Adamy.
The Wall Street Journal. Wednesday, July 18, 2007.
“Shultz Takes Over to Try to Perk Up Starbucks” by Janet Adamy.
The Wall Street Journal. Tuesday, January 8, 2008.
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