By John I. Todor, Ph.D., author of Addicted Customers (www.AddictedCustomers.com).

“Coffee addicts were shaken, and stirred, recently when a memo written by Starbucks Corp. founder and Chairman Howard Schultz was posted on the Internet. Noting with a mixture of pride and horror that Starbucks has gone from 1000 to 13,000 stores in 10 years, Schultz expressed  regret over a “series of decisions that, in retrospect, have led to the watering down of the Starbucks experience and what some might call the commoditization of our brand.”

“In his memo, Schultz noted that increasing the scale of Starbucks had led to a number of necessary corner-cuts. For instance, the introduction of “flavor-locked packaging” that has caused stores to lose their distinctive aroma, or the decision to install automatic espresso machines. “We solved a major problem in terms of speed of service and efficiency.” Schultz noted, but “overlooked the fact that we would remove much of the romance and theatre that was in play with the La Marozocco machines.” (Los Angeles Times, March 4, 2007)

Here’s what I had to say about Starbuck when writing Addicted Customers in the summer of 2006.

Starbucks. Until recently, Starbucks Baristas made all espresso drinks from scratch. They ground the espresso coffee beans, hand-tamped them into the espresso handle, and watched over the steaming process to make sure the espresso was made within 30 seconds. If it took more than 30 seconds, the employees were told that the air would degrade the coffee and they were instructed to throw it out and start over. That was then. These days, most Starbucks use automated espresso machines. There’s nothing for the Barista to do but press a button. Of course, the new process saves time, and someone at Starbucks believes time is money.
An informal study suggests that the switch to the automated espresso machine might be having unintended consequences. In the past, the Barista made the espresso drink from scratch and almost always looked the customer in the eye as he or she handed it to the person, smiled, and vocalized a greeting. The employee was engaged and pleased to give something he or she had made to the customer. That might still happen in some cases, but more and more often, customers feel that the espresso drinks were put on the counters by disengaged employees who don’t even look at them. Certainly, there are many Starbucks employees whose inherent courtesy keeps them engaged and engaging, but this is not the norm. Check it out for yourself the next time you order a Starbucks coffee. If you’re on the receiving end of the Get Shorty blank expression, think about how that makes you feel, and make a point of remembering that feeling. Now, the next time an employee is especially personable, contrast those feelings. Which customer experience do you prefer?

Posted by John Todor on Friday, March 9th, 2007 at 8:18 am.