Wednesday, July 30, 2008

Winding me up

I've commented once or twice about the big shake-ups at my Starbucks. Given the length of time I worked there and the real affection I have for the company it's pretty hard for me to read stuff like this becuase I think that pretty much every analyst in that article is wrong wrong wrong and that Howard is making a huge mistake by focusing on stock value. But once I get started you'll end up with a 200 page diatribe complete with foot-notes and charts that won't accomplish anything since none of the analysts will read it, the reporters won't actually learn enough to not print BS and more importantly Howard could care less what I think.

The bottom line is that Starbucks business model is very good, it should be doing very well in an economic downturn (it's a faux-luxury item). But The BUX won't capitilize on this because I don't really believe that it's management (or analysts) has really internalized it true business model or understand the strategic implications of that model. Instead, I expect they will heed analysts calls to make decisions that fit the traditional fast-food business model because, well, it's a simpler model to follow.

It's a bit like watching a close family member with a great job, kids and a beautiful wife through it all away because their friends tell them they should be making more money and playing more golf. You know they have a great life, and you want to stop them from throwing it all away but in the end you know it will end in divorce, cheating and an overpriced Porche.

Mmmmmm Porche.....


At Wednesday, July 30, 2008 9:12:00 PM, Anonymous Coach Curly said...

simmer down... the best is coming.

At Wednesday, July 30, 2008 10:56:00 PM, Blogger justfivegrins said...

This is light blogging?

And that's PORSCHE you knucklehead - and I hate golf!

At Thursday, July 31, 2008 11:42:00 AM, Anonymous Anonymous said...

Pru you got it a bit wrong: when you 1st leave your wife you get the giant BMW. A few year later when your hair has fallen out and you want to trade in the 1st woman you left your wife for and go for the college party girls, THAT's when you get the Porsche.

At Thursday, July 31, 2008 11:41:00 PM, Anonymous Anonymous said...

I was hoping for some comments about 'Critical Mass' and last weekend's ugly incident.

And completely unrelated: "Tell No One" is a must-see. It's @ the Egyptian.

At Wednesday, August 06, 2008 8:13:00 AM, Blogger Argentius said...

Well, apart from the Porsche thing, I was going to mock you for saying "a close family member ... through it all away." You say "throwing it all away," later, though, so I know you get the picture.

The faux-luxury part is pretty true. Most people didn't care what I put in their cup so long as it said Starbucks and had a long name, but they REALLY wanted it to be fancy.

On of the genius parts of the Starbucks recipies is how specific they are: 3 pumps of Vanilla, 165 degrees. That way, they can create a 158 degree, 2.5 pump vanilla, half a splenda, absolutely no foam at all latte.

At most independent cafes, all you can really manage is "extra" vanilla and "not too hot," because there are no pumps and no thermometers.

Like I've said before: SBUX doesn't sell coffee. It sells control.

In an economic downturn, I'd think a lot of people would be feeling OUT of control, and that a quick fix at the 'Bux might be just the ticket...


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