StarBucks' Dreams!!
Coffee! That sounds so good especially when you think of 2 different cultures. France & StarBucks (SB)! (well, don't know if I can call SB has made a culture for coffee, but its American, established World Wide & has its own taste for coffee, a different culture of its own). French coffee doesn't need a mention. The taste itself talks. If you haven't tasted one, you may want to think about stopping at Cafe Du Monde, the next time you visit New Orleans. Its just not the taste, but the French culture to define a coffee shop is to have a crowded dim lit place where people smoke.
So, where do SB blend into this French culture? I doubt if SB ever had a blend in. SB is like making a high class fashion statement - Bright Lights, not too much of crowd, no smoking shops. So, why is SB opening like 23 stores in France? Who does it count on?
My take is the tourist segment. Once it can pull in the American & Asian tourists, it'll eventually make impressions on the French market to stop by & take a look; French Market, I mean, the middle & upper middle class. Then comes the point where French people want to have the coffee as they always do. They end up 'to go' or outside the shop 'coffeeing' where they have the freedom to light a cigarette.
Now, coming to the interview with Howard Schultz in 60 Minutes
Opening 5 stores every day looks like an over kill on investment. I just wonder how SB is really making a return on all those investments. Likewise, why to open multiple stores across the streets - Does this have any kind of business strategy - To avoid long queues? Around my house, I have 3 SBs and the status quo of this area is lower middle class. I'm not sure if the stores around me are really making that much business. If people have come for StarBucks and if they like it, they are going to wait for it. But, understandably, people who come to StarBucks are the upper class who don't want to wait, don't want to waste time but to make worthy of the time they spend in SB & at the same time, make the 'fashion' statement.
At the same time, people don't hesitate to come to SB. You know why? Because, customers know that the major part of the money they give goes for good cause - The employees health insurance (even for those who work only 20 hours per week), stock options, the price money for farmers (which is never a bargained rate) who grow coffee beans and much more. Isn't it great, WalMart?
I just can't accept the idea behind 'Tall'. If people order a TALL, they are satisfied with the drink before they have had it. But the word 'Small' & 'Medium' will make them have more. Its just a mind set based on the word used at that instance. Make business out of people's mind set. I guess that will sure make a difference. Also, I'm not sure about the whooping number of 55,000 - the possible combination of drinks. My goodness! When do customers get time to analyze & order the specific drink they want.
'Akeelah & Bee' - What a way to market this movie on 60 minutes just before it is getting released. I have seen trailors but never realized that its from SB. After knowing that its from SB, my heart has a small inclination to watch it. (Lets See!)
The concept behind this business is always a marvel to me. The idea that Howard Schultz from Projects in Brooklyn, is behind this $29Million company really makes me think about me & my status. Hats off to you, Schultz. Your secrets, mysteries & magics have worked out miracles.
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