David Pullara

Thursday, March 26, 2015

Can Starbucks "Deliver" on it's brand promise?



There's a quote about the Starbucks Coffee Company I've always liked. It's attributed to long-time Starbucks executive Howard Behar, and although I first heard it over ten years ago when I worked as a Starbucks partner, I can still remember it perfectly:

"We're not in the coffee business serving peoplewe're in the people business serving coffee."

Coffee is a commodity, and it's available almost everywhere. You simply don't need to pay Starbucks prices if all you're looking for is a daily caffeine fix: if your tastes are simple, ubiquitous restaurant giants like Tim Hortons and McDonald's are more than happy to sell you a cup of Joe for much less than what Starbucks charges, and if your coffee palette is more refined, there are thousands of trendy independent coffee shops you can visit instead. So why do millions of people every day choose to pay more for Starbucks coffee?

Because it's not about the coffee, and it's about the coffee experience.

When I was a partner, Starbucks took pride in being a customer's "third place": the place you would feel most comfortable after your home and work. It's where they wanted you to go when you needed some time to yourself, or a place to meet up with friends, or a venue to meet a client that was less formal than an office boardroom.

That's the expectation they have set with their customers, and I also think it's the reason even the most passionate Starbucks fans will get so angry when they get a poor Starbucks experience: because when the experience is bad, they didn't get what they actually bought.

As Starbucks started to expand over the years, they knew they needed to sacrifice some ambiance in order to sell their coffee via different venues, but initially they kept some form of human connection. They introduced the Starbucks Drive-Thru, which had customers trade store-atmosphere for speed-of-service, but this new option maintained the same menu and the same friendly barista; the only difference was that she smiled at you through a drive-through window instead of across the counter. Then came select foodservice locations, where the experience was notably lessened from a Starbucks store, but that was easy to explain: the location wasn't a Starbucks and the people working there weren't Starbucks partners. But there were still people present, and they usually tried their best.

Then Starbucks began to remove the people from the experience.

Starbucks then moved into the coffee aisles of grocery stores (where most coffee purchases are actually made), and this turned the "Starbucks experience" into the "make sure you add Starbucks coffee to the grocery list" experience. (Sure, you could have whatever experience you wanted when you brewed the coffee back at home, but it wasn't the same as what you got when you went to a store.) Then came select offices, via automatic single-cup brewers you could have serviced with an office-coffee provider: no human interaction at all.

I'm not saying I'm against Starbucks coffee being sold in grocery stores. (That would be somewhat hypocritical of me, since my first job at Starbucks was to help put it there.) But when I buy my Starbucks from Wal-Mart during my weekly shopping trip, I'm not focused on the "Starbucks Experience", I'm focused on getting the best possible price for Starbucks coffee. And at that point, Starbucks is back to being a commodity item instead of the prestige brand it worked so hard to become. 

Where will Starbucks Delivery fit on the "Experience" spectrum?

Starbucks is reportedly testing a delivery service that will bring your coffee (and treats) right to you after you place your order from a special website. Right now it's only available in two test locations, but I can't help but wonder where this new option will fall on the Starbucks Experience Spectrum.

The coffee and food will need to be hot and fresh; that's a given. (Because who wants to be delivered lukewarm coffee and cold pastries?) And the speed of service will need to be fast, because when I need a coffee, I need it IMMEDIATELY!! And it will help if the person delivering my order is exceptionally friendly, and takes the time to get to know me if I'm a repeat customer. (Just like they try to do when you frequent the same store often.)  

If all of that happens perfectly, then I suppose it's possible to achieve an experience that is equivalent to what you'd get at a good Starbucks Drive-Thru today. If it doesn't, customers will likely be less forgiving. After all, when you're in a store and there's a long line-up, you can sympathize with the staff trying their best to fill all of the orders. When you're sitting in your office boardroom waiting for a delivery that was expected five minutes earlier? I'll bet you'd be less understanding.

But even the best Starbucks delivery service won't be the same as a store. And the store experience is what the Starbucks brand is all about.


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