Keith Barthelme’s Post

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Global Meat Operations & Retail Expert | Leading Consumer-Centric Growth | Driving Collaborative Progress in Fresh Categories

Businesses like coffee shops are used by consumers in vastly different ways compared to other retail outlets. Coffee shops often serve as an oasis or a safe place. It's a place to get warm and rest for a moment. This essence is similar to how public houses functioned in medieval times. Starbucks may have either intentionally or unintentionally overlooked this emotional nuance. This is unique to this type of retail business and independent from the challenges faced by other retail operations. #innovation #management #technology #creativity #future

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Neil Saunders Neil Saunders is an Influencer

Managing Director and Retail Analyst at GlobalData Retail

It’s no secret that Starbucks has been struggling. In the latest quarter, same-store transactions were down by 7% across North America. This is a pretty serious drop that encompasses both existing customers visiting less frequently and some stopping visits altogether. Starbucks initial response to the problem has been to focus on price – offering deals to try and entice consumers. This is fine, as it goes. But it does not address the elephant in the room: the quality of the experience. Partly because of staff workload, partly because of deliberate changes to stop people lingering for too long, partly because of a lack of investment, Starbucks has become a far less attractive place to visit. That has driven some patrons to other outlets, including independent coffee shops – many of which pay close attention to the vibe of their stores. Starbucks has a difficult balancing act. It is a volume business, but it is also a brand. And that brand and the experience it offers matters. An interesting article by CNN (link in comments) looks at Starbucks’ evolution from trying to be a third place to a coffee production line. #retail #retailnews #foodservice #coffee #restaurants

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Keith Barthelme

Global Meat Operations & Retail Expert | Leading Consumer-Centric Growth | Driving Collaborative Progress in Fresh Categories

8mo

Has Starbucks lost sight of the emotional connection consumers have with coffee shops, and how can they restore it?

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