In an effort to placate pissed off shareholders Starbuck’s CEO, Howard “I see nuttink” aka “Sergeant” Shultz blames the current “economic tailspin” for his company’s woes. Earlier this evening I was at Starbucks. At 8:00 pm the place was full. The biker chick in front of me ordered a 6 shot latte. The PTA moms were having a meeting there and all 10 were fully grande mocha’ed up. Esposa and myownself enjoyed our usual venti machiattos. The place was packed.
So tell me. Is it the economy or possibly the wild-assed building spree and insane expansion strategy that has his ship dragging bottom? Is it possibly the recurring price increases that are driving people away. Or could it be the abject failure of their recent “reeducation” exercise? How do you expand the way Starbucks has over the last few years and retain any semblance of quality, continuity and consistency? It’s about more than the same mermaid wallpaper and funky lights. It’s about finding quality people that give a crap and not hiring the first Mickey D’s reject that walks in the door to be your numero une barista.
So blame it on the economy Sarge. Keep dragging in those “rebuilding the empire CEO” cheques. Ride this bitch for all it’s worth, then deploy your golden parachute. You need to get your mind out of the cupholder look around.
It ain’t the economy. People are drinking coffee, just not yours so much anymore. It’s poor management and the blindness that comes with outrageous success that lead one to believe the good times will roll on forever.
Ask a few”retired” telecom execs how that worked out for them.