Starbuck’s

The news about Starbuck’s having to close some 600 locations has drawn a lot of attention and varying comments.  This is interesting to see because it is a classic case of a company that started out with the right employee culture but then changed into a company that was focused more on their brand than their employees.  I can only hope that Howard can pull this back, but I am afraid it may be too late.  The concept of Starbuck’s, being a cafe oriented meeting place much like you see in Italy, was a great idea.  Having the employees (associates) engaged in the customer process, an even better idea.  For some reason, we just did not mind paying $4.50 for a cup of hot water when that started out.  Then the cafe image became (at least where I am) a bunch of tables on the sidewalk that are facing a parking lot.  Then the process of employee interaction went from having your name called to having your type of drink order called and leaving it up to you to figure out if you were in fact “next” for that order.  When the cost of gas started to compete with this, Starbuck’s started to lose out.

Too bad, this was a company that really “got it” as far as Employee Motivation was concerned.  They truly believed that an employee (I know they do not call them employees) was indeed a valuable asset.  But then stores became more important and they added “stuff” (CD’s, cups, machines, etc.) to sell and got away from allowing those great employees to create an experience for us.  Truth is, we were (still are??) willing to pay for the experience!

I for one will be watching this and see what they do to gain back that employee interaction.  While some of the Starbuck’s locations have an Employee of the Month” plaque hanging up (okay, Associate of the Month), this situation will call for a lot more than that.  They need to really get involved with a true Employee Recognition Program, one that will create that atmosphere where customers will feel that experience again.  McDonald’s or Starbuck’s?  I choose Starbuck’s, but I would go to McD’s if the experience (and cost) is the same.