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 | May 2008 |  |
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BLOG ARCHIVE
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Making a perfect espresso shot is an art. It is a delicate balance between the grind, the pressure of the tamp, the time of the shot, the time of day, humidity, etc. All adds up to the fact that is has to be done manually. And experience matters.
Just before the Starbucks' training closure I got one of the worst shots of espresso in my life at a Starbucks in Las Vegas. It's not the fault of the barista. That's just what happens when a company shifts to automated machines. Automation is great for welds on an assembly line turning out cars. it's lousy for a drink that is supposed to have nuance, life and zest.
So what did Starbucks' baristas learn. Yes, the service relationship is important. Yes, the foam has to be right. But a proper espresso shot is an act of love. And Starbucks can never get that again by pusing a button. |
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POSTED BY warren@specialtyroast.com AT 12:00 AM
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Or the end of the beginning?
The news that Starbucks is testing a $1 refillable cup of 8-oz coffee shows just how far the company has gone sideways in tinkering with its branding and customer experience.
Today in the same breath critics and the press compare Starbucks to McDonald's and other fast food providers. Until this news Starbucks could always claim to be in a different league from them and Dunk'n Donuts.
From our experience it looks like the company will cannibalize its more expensive served drinks and attract 'bench-warmers' sipping and chatting, and not buying upscale refreshment. |
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POSTED BY warren@specialtyroast.com AT 12:00 AM
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SATURDAY, JANUARY 19, 2008
The Bankrupt Red Cross
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The news is full of reports that state and national Red Cross chapters are short on funds because there have been no media-blowing natual disasters that prompt Americans to donate. What a terrible way to fund raise! Piggyback on someone else's tragedy!
The real tragedy is the lack of creative fund-raising ideas exhibited by so many charities.
Our 'bottom of the pyramid' fund-raising-with-coffee solution can actually generate MORE money than folks can give with spare change. Our average household orders two pounds per month, generating $48 annually in tax-deductible donations. Our average business creates $200 annually. Our largest donation of $3,800 annually to an animal shelter comes from ONE business that is giving hundreds of 'thank you' packages of coffee monthly.
Our model is not hard to understand. Drink or give away coffee to benefit YOUR cause. What is sad (and frustrating )is the lack of creativity on the part of the causes that can benefit. Red Cross - wake up! |
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POSTED BY warren@specialtyroast.com AT 12:00 AM
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All gourmet coffee drinkers owe Howard Schultz a vote of thanks. When I came to Seattle in 1979, fresh from my introduction of Perrier Water into the US, Starbucks was struggling with five locations and plans to expand into SF.
Howard saw the potential, bought it and made it what it is today, a global brand. Howard was a marketing genius. He somehow took a European style coffee concept and made it quintessentially American. So successful that he could copy/paste the user experience worldwide. It is one of the few American brands that is welcomed overseas. And back in the US, he built this without spending millions on national TV advertising. Amazing.
Today Howard has a more disconcerting challenge: how to satisfy the incessant demons on Wall Street to support the stock price. Yesterday on Seattle's KUOW - the UW's campus public radio station, the naive thought Starbucks needed to spend more on social justice, its baristas, etc. etc. All these ideas spend money rather than return profit. All drive down the stock price. That's not Howard's mission today.
Schultz had the genius to build a brand based on quality, respect for employees, and an understanding of the changing work place that would drive many to look for a Starbucks to meet. Now he may have to dismantle many of these initiatives. Part-time baristas may lose their benefits. Coffee quality may degrade. Design may go down..
With McDonalds now bringing espresso and lattes to their stores, the challenge to differentiate Starbucks from others will be harder, not easier. Good luck, Howard. |
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POSTED BY warren@specialtyroast.com AT 12:00 AM
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Every time you buy a bag of coffee we donate $2 per pound to your cause. New in 2008 we will begin record-keeping on your behalf so you can take the deduction on your taxes.
When we started this business in 2004 we anticipated a marketing partnership from charities. That has not materialized, so our $2 per pound has become a true donation, generating paperwork from the charities thanking us for our tax-deductible donation.
So in 2008 your receipt will show the amount you can claim as a deduction based upon the value of our coffee. The 'excess value' works out to be on-average $2 per pound. So save those receipts. Or, for a more convenient way to report your contribution, sign up for our Coffee Club. You will gain a convenient automatic re-order AND a handy year-end report summarizing your tax-deductible contributions. Happy New Year! |
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POSTED BY warren@specialtyroast.com AT 12:00 AM
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