William Blair’s Post

Didn't think I would watch a 3 hour interview with Howard Schultz, but this was riveting. He had 90 days to raise $3.8M to buy Starbucks. One of his investors tried to bypass him with an all-cash offer. Bill Gates Sr. (!!) literally told Sam to back off, and invested in the purchase himself. He names the investor for the first time in this interview - a well known Seattle tycoon. Store economics were insane (better than most tech companies): * 80% gross margin * 2:1 Sales-to-investment ratio for new stores * 20%+ operating margin Starbucks was turned down by Goldman Sachs for the IPO, and opened at $250M market cap. Drink customization is a major feature. There are 100,000 regular variations of beverages served every day. Really interesting: Howard sees the mobile app as destructive to the experience (despite ridiculous economics, like a $14B float). After watching this, I hunted around and consolidated my Starbucks cards - I had $30 sitting in drawers, effectively an interest-free loan to $SBUX. https://lnkd.in/gn53B4F2

I loved the feel of the Starbucks in our local 📚 Barnes & Noble, 20 years ago. To recapture that feel, ☕ Starbucks needs to move away from its current assembly-line approach and allow employees to play a central role in the customer experience once again. The energy of baristas and the personal connections they formed with customers is what originally gave Starbucks the feel of a neighborhood coffee shop. What do you think? Annie --- Starbucks is in trouble again. In its last quarterly-earnings report, it announced disappointing results, including a 4% drop in same-store sales (11% in China, its second-biggest market). After that announcement, its stock plunged. (It is still well below its 12-month high.) And its founder and three-time CEO Howard Schultz once again fired off a missive on LinkedIn pleading with Starbucks’ current leaders to rediscover and embrace the company’s core purpose, its reason for existence. Schultz’s open letter, which followed another he issued in February, largely echoes the growing sentiments of many long-time customers: Going to Starbucks isn’t what it used to be, and the brand itself isn’t what it used to mean. The fundamental problem: Starbucks has been commoditizing itself. ...READ More... Starbucks #CXBrandExperience #CustomerCentricity #BrandLoyalty #CXStrategy Hon.

Visiting the place where it all started is a reminder that big dreams start small. Last week, I got to visit Starbucks' first-ever location in Seattle and left feeling inspired. From visibly humble beginnings, Starbucks transformed into a global phenomenon, and there are powerful lessons here for any company aiming to scale. Starbucks redefined coffee culture in the U.S., turning a simple coffee shop into a third place between work and home. It was not just about coffee; it has always been about the experience. Starbucks made their stores a destination, focusing on customer service and ambiance. I believe that this approach to building a strong brand identity was crucial for their growth (ensuring returning customers). So many great lessons to learn from this giant. What Starbucks teaches us is the power of vision, innovation, and a relentless focus on customer experience. Every big dream starts with a small step. Stay focused, keep innovating, and never lose sight of your vision. 🔥 #bigdreams #customerexperience #innovation #starbucks

Here is how Starbucks grew to $3,700,000 in free cash flow in 2023. I was listening to a great interview with Howard Schultz, the former CEO of Starbucks. He said the magic happened at Starbucks when two things occurred. He acknowledged that he had good ideas and concepts for the business. But then iterated the business based on feedback from customers. When you go to Starbucks, you know you can have them make the drink the way you like it. At The EnM Group, we have many forward-thinking ideas -- yet our core focus is taking feedback from our clients and iterating to best serve them. How do you plan on making $3,700,000?

How can Starbucks get it's mojo back? Several years ago, Howard Shultz came to the conclusion that Starbucks was losing its way. The brand had morphed into a fast-food business and the coffee story eroded in the process. My last agency was brought in to help Starbucks to re-discover it's authentic story, travelling the world to uncover coffee culture across the brands diverse markets. The finding were translated into a set of experience principles that became the brief for the Starbucks Reserve concept. Reserve helped Starbucks to solidify its status as a global super-brand and unleashed a program of locally nuance renewal across its massive estate. But with wfh, everything changed. New working patterns and habits changed the game, and Starbucks have been caught out trying to find the right balance between convenience and experience, ultimately serving neither particularly well. Nobody can deny the scale of the task in transforming a brands physical experience on this scale, and it's somewhat understandable that Starbucks have resorted to deploying digitally-enabled stick-on plasters to address these new norms, but now should be the time to reappraise on a fundamental level how to transform their estate to better address the balance, offering a more clear delineation of experience for customers who seek dwell and those who seek seamless conveniences. #brandexperience #starbucks #conrandesigngroup

Starbucks is struggling. It has strayed from its successful strategy of offering customers exceptional experiences and, in the process, has commoditized itself. This article analyzes where it went wrong and offers ideas for how the company can turn itself around. It holds lessons for other companies that compete by providing customers distinctive experiences. https://lnkd.in/d-MWTys2

A perfect case study as to why sometimes smartest people in business could use lessons on “business 101.” Our beloved Starbucks chose scale and expediency itstead of focusing on its core purpose: a place to hang out, relax and work….and customers happily paid hefty prices for fancy beverages. Not sure if there are any success stories where a switch to commoditization helped a business strengthen its brand and shareholder value in the long run. I am wondering whether Howard Schultz and mangers in charge can help return Starbucks to its “glory days”….if yes what will it take given its sheer scale, and how long it might take?

How Starbucks Devalued Its Own Brand https://lnkd.in/dZ5qtjRA Starbucks......has strayed from its successful strategy of offering customers exceptional experiences and, in the process, has commoditized itself........Starbucks may call it “experiential convenience,” but we consider that an oxymoron; convenience is about time well saved and experience is about time well spent. It’s really just the experiential equivalent of “shrinkflation.” In this article B. Joseph Pine II, author of The Experience Economy, analyzes where it went wrong and offers ideas for how the company can turn itself around.  It holds lessons for other companies that compete by providing customers distinctive experiences. Howard Schultz fired off a missive on LinkedIn, Read it here: https://lnkd.in/dH3cSAXH

📢 New YouTube Short Alert! 🎥 Ever wondered why Starbucks had to shut down 600 stores in 2008? Discover the story behind this bold move and the lessons learned from it. 📉☕️ Check out our latest short video where we break down the key issues and solutions that helped Starbucks regain its brand exclusivity. Don't miss it! 🚀 Watch now: https://lnkd.in/geHpvZ_5 #Starbucks #BusinessStrategy #2008Crisis #BrandManagement #HBRCaseStudy #BusinessLessons #RetailChallenges #BusinessInsights 👉 Subscribe for more business insights and hit the notification bell! 🔔