SavvySugar -- It Makes Sense.

Guess How Much Water Starbucks Wastes Every Day

SavvySugar — Tue, 07 Oct 2008 09:30:42 -0700

Starbucks' water practices became the target of a recent investigation led by British newspaper The Sun, and if accurate, the findings are disturbing to conservationists. The investigation was prompted when a UK couple alerted a Starbucks employee to a running faucet, and the employee acknowledged its company policy to keep water running throughout the day to prevent germ buildup in the taps. Imagine what the water bills must be like! On top of the rising price of commodities, it's no wonder the drink menu is expensive.

Starbucks defended its policy to ABC News in a statement saying, "Starbucks' challenge is to balance water conservation with the need for consumer safety." Can you guess how much water The Sun estimates that Starbucks wastes every day by leaving the water on?

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McDonald's Ad Tries to Put Down Starbucks: Hit or Miss?

SavvySugar — Sat, 04 Oct 2008 11:00:34 -0700

In one of its not-so-subtle new commercials, McDonald's uses a conversation between two women to attack the stereotypical Starbucks culture. Does the commercial succeed in making you want to try McDonald's coffee, or does its snotty portrayal of Starbucks rub you the wrong way?

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McDonald's Ad Tries to Put Down Starbucks: Hit or Miss?

Hit!

Miss!

Undecided.

What You Can Learn From Starbucks' Independent Competitors

SavvySugar — Tue, 26 Aug 2008 12:30:22 -0700

Smaller coffee shops neighboring chain-of-all-chains, Starbucks, told The Seattle Times they no longer fear being pushed out of business by their famous Frappucino-making competitor. While Starbucks was initially a threat to independent shops, they were able to channel the success of the chain and sustain viable businesses, too. Find out what this attitude has to do with you and job searching when you

Starbucks's Plan: Caffeinated Gimmick or Good Business?

SavvySugar — Wed, 06 Aug 2008 08:00:23 -0700

Starbucks' newly announced $2 afternoon beverage is reserved for customers that have already purchased a coffee drink earlier in the day. Essentially, the plan is a buy-one-get-one-half-off promotion, and Starbucks knows that many consumers have a tough time passing up what's perceived as a "discount." On one hand, the three-week promotion might encourage daily customers to return in the afternoons when they may normally opt for another type of pick-me-up. But on the other hand, I'm not sure the promotion will attract customers who are already loyal to Starbucks's competitors when it requires visiting the store twice in one day. After all, $2 is still money in your pocket if you weren't planning on spending it in the first place. Do you think the promotion will help get the ailing company back on its feet, or do you think it will be an overly caffeinated flop? Source

Starbucks's Plan: Caffeinated Gimmick or Good Business?

Caffeinated gimmick!

Good business!

Something else. I'll tell you in the comments below.

Do You Know Someone Who Has Lost a Job This Year?

SavvySugar — Wed, 30 Jul 2008 06:30:34 -0700

The names of all the companies that have announced staffing cuts this year are beginning to run together. Most recently, Starbucks announced their plan to cut almost 1,000 non-store jobs in addition to the 12,000 or so layoffs that will come as a result of the 616 store closures. All of this grim employment news has me wondering, do you know anyone who has lost a job this year? Source

Do You Know Someone Who Has Lost a Job This Year?

Yes, I know at least one person who has lost a job this year.

No, I don't know anyone who has lost a job this year.

Unfortunately, I went through a job loss this year.

Something else. I'll tell you in the comments below.

Caffeinated Regulars Launch Save Our Starbucks Campaign

SavvySugar — Tue, 22 Jul 2008 15:29:59 -0700

Now that Starbucks has come forward with its official list of stores to close by the first half of 2009, some of the stores' regulars have banded together in launching a Save Our Starbucks campaign. On its website, the caffeine crusaders are asking other Starbucks lovers to "tell the world your Starbucks story and how much you value your local location."

The appeals from customers are coming to Starbucks in the form of letters, phone calls, and petitions. One woman, a facilities manager for a software company in Manhattan, said this of the Starbucks closing in her company's new office building: "Now that it's going away, we're devastated."

California, Florida, and Texas will see the most store closures, but proportionately Mississippi, North Dakota, Minnesota, and Nebraska will be losing the largest percentage of locations. The Wall Street Journal smartly points out that "Starbucks outlets serve as key draws for other retailers, making the loss of one a blow to the surrounding area."

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Find Out If Your Neighborhood Starbucks Is Closing For Good

SavvySugar — Mon, 21 Jul 2008 14:00:05 -0700

No more need for the rumorville, because Starbucks has released a list of the 616 stores that will close their doors for good by June 2009. You may have just been getting to know the green-aproned staff at these locations, as most were opened sometime in the last two years.

The 616 of Starbucks's 7,087 total US stores were unprofitable and many could identify another Starbucks as neighbors. While this close proximity would make it easy to borrow milk, it did nothing to increase sales. You can discover if your neighborhood's Starbucks will be permanently hanging up the closed sign by checking out a map of the exact locations.

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A Starbucks Closing Near You

SavvySugar — Wed, 09 Jul 2008 11:07:46 -0700

It's a fact that Starbucks will close 600 stores and the whole process will continue into 2009. It's also a fact that the US is saturated with the coffee shops. This map, however, is the result of tips from Starbucks employees and some eavesdropping reporters.

There are nowhere near several hundred locations listed, but you can check out the specific stores that are supposedly closing. This map is far from complete as it shows only one CA location and zero in Arizona — two states where Starbucks overestimated the buying power of residents facing foreclosure. If you know of a store that's closing the Seattle Times wants you to let them know.

Trick Question: Where Is the Nearest Starbucks?

SavvySugar — Mon, 07 Jul 2008 08:07:51 -0700

It didn't come as much of a surprise when Starbucks announced they'd be closing 600 stores and eliminating 12,000 positions, and when The New York Times took another look into the company's troubles it exposed that real estate was Starbucks's biggest fumble. The two-page article can be summed up with just one observation: "Starbucks misjudged the risks of putting stores close to each other."

You can say that again — Google Maps turned up 99 locations within just one mile of Sugar HQ! How many Starbucks are within one mile of your home or office?

Starbucks to Close 600 Stores and Fire 12,000 Workers. . . Is Anyone Surprised?

SavvySugar — Wed, 02 Jul 2008 04:04:31 -0700

After spending the first half of the year exploring different initiatives meant to direct the coffee company towards a successful future, they've come to terms with the numbers and have announced their plan to close 600 underperforming stores and get rid of 12,000 jobs. That second number represents about seven percent of the company's global workforce.

The news is obviously not good for those employees whose positions will be eliminated, but is anyone actually surprised that so many stores will be closing? The company seems to have learned the hard way that too much of a good thing isn't so great. Their initial success spawned the opening of its stores in every coffee-drinking town and city it could, and its overachieving growth has led to its current demise. The decision to proliferate in booming California and Florida is one that the company now regrets — the housing crises hit these places the hardest and people are less likely to grab a jazzed up cup of joe when they can't pay their mortgage.

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Uh, Oh, More Trouble Brewing For Starbucks

SavvySugar — Fri, 04 Apr 2008 06:27:56 -0700

Starbucks must have smelled this one coming. After the ruling from a California court last week that Starbucks owes its CA baristas $105 million because it allowed supervisors to get a piece of tip jar action, now the New York Times is reporting that a similar suit in New York has just been filed.

One of the lawyers who brought the case to NY is trying to make it a class action on behalf of all the state's baristas. Meanwhile, the CA case is being appealed and CEO Howard Schulz deemed the ruling “extremely unfair and beyond reason.” A Manhattan barista interviewed by the Times said she's paid $10.03 an hour after working at Starbucks for three years, and a shift supervisor who has the same amount of time under her green apron makes $10.25 an hour.

Does it make sense that $0.22 more per hour and additional responsibilities disallows supervisors from partaking in the tip jar? The real issue is that the supervisors are considered management and the tip sharing offends state law, but these suits do seem slightly frivolous.

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Should Starbucks Owe Its Baristas $105 Million?

SavvySugar — Sun, 23 Mar 2008 11:09:40 -0700

Lately, Starbucks has been as visible in the news as its stores are on the streets of San Francisco (and Manhattan, and Los Angeles, and...). The most recent headline features Starbucks and its tip jar — they made a California court appearance together, and the tip jar won. Well, more specifically, the baristas won $105 million in back tips in a suit surrounding the fact that Starbucks permitted shift supervisors to share tips. The New York Times explains that supervisors make coffee alongside baristas, but they also have managerial responsibilities like directing employees and setting schedules.The baristas won because they had CA labor law in their favor. The law says that tips can be pooled among workers but owners and their "agents" (managers and supervisors) can't get a piece of the pool. Starbucks plans to appeal the decision and described it as “fundamentally unfair and beyond all common sense and reason.” Whose side are you on?Source

Should Starbucks Owe Its Baristas $105 Million?

Starbucks is right, it doesn't make any sense. They should win the appeal.

This is a legit class-action. Starbucks was disobeying the law.

Other. See my comments below.

Is The New Starbucks Community a Smart Business Idea?

SavvySugar — Thu, 20 Mar 2008 04:59:57 -0700

Well check you out, Starbucks. At its annual shareholder meeting yesterday, the under-performing company announced some initiatives that stray from what the brand has turned into as of late. I found the most intriguing idea to be their version of a social scene — just yesterday they introduced an online community, My Starbucks Idea, where customers like you can get in touch with employees and make suggestions. Not only that, but Starbucks' head honchos will contribute to a blog that will live on the site. The new community is a natural fit for the revitalized image CEO Howard Schulz envisions for the company. In his opening remarks at yesterday's meeting he said, "We somehow evolved from a culture of entrepreneurship, creativity and innovation to a culture of, in a way, mediocrity and bureaucracy." YumSugar has all of the details on the new coffee ideas that made caffeinated waves at yesterday's meeting, but before you check them out tell me if you think the new community makes good business sense. Source

Is The New Starbucks Community a Smart Business Idea?

Yes. I'll be contributing my ideas on how to improve the company through the community.

No. It's a lame attempt to connect with customers who have already moved on.

Other. See my comments below.

Should Starbucks Ditch the Tip Jar?

SavvySugar — Mon, 03 Mar 2008 12:57:25 -0800

We've been following Starbucks CEO Howard Schultz in his publicized efforts to improve the company and its stores. In just the past month or so we've heard about the decision to nix breakfast sandwiches, test the $1.50 cup of coffee, the free WiFi arrangement, and witnessed the commitment to retraining its baristas to make the coffee the best it can be. A writer at the Wall Street Journal suggests that getting rid of the tip jars by the registers could be a more meaningful step than the ones that Mr. Schultz has taken. He argues that "the tip jar subsidizes the company's payroll costs" and compares contributing to the tip jar with making a donation to Starbucks. The writer adds that to maintain its quality staff, the company would have to boost employees' wages without the tip jar. Source

Should Starbucks Ditch the Tip Jar?

Yes, a big company like Starbucks shouldn't rely on tip jars to make up the difference.

No, I don't think the tip jars have any relevance to Starbucks' declining success.

Other. See my comments below.

Starbucks Is Adding Free Wi-Fi to Its Menu

SavvySugar — Tue, 12 Feb 2008 11:23:35 -0800

You were on the money when many of you said free Wi-Fi would be a good place to start improving Starbucks. The company has partnered with AT&T and will begin offering free wireless access this Spring. Customers carrying a Starbucks card can use two hours of free wireless per day, and beyond the allotted time they'll charge $3.99 for an additional two hours. Monthly memberships for $19.99 comes with access to any of AT&T's 70,000 hot spots around the world, and if AT&T is already your service provider you'll have unlimited Wi-Fi access at Starbucks.

Does this announcement make up for their decision to nix the breakfast sandwiches that so many of you will miss?

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Starbucks Says No to Breakfast and Cannibalization

SavvySugar — Thu, 31 Jan 2008 07:46:00 -0800

Starbucks has been taking baby steps towards improving its business model and image, as proven with their recent $1 short brew testing and their latest announcement that they're getting rid of hot breakfast sandwiches. Truthfully, I never noticed they even offered breakfast sandwiches, but CEO Howard D. Schultz explained that they interfere with the smell of coffee. Well, at least I don't know what I'm missing. Anyone out there going to be enduring breakfast sandwich withdrawals? In other Starbucks news, they're reducing the number of US store openings this year from 1,600 to 1,175 stores. Mr. Schultz defended the decision when he said, “by reducing the number of openings, we expect to optimize our resources and potentially reduce cannibalization of our existing stores."

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News Flash: Starbucks Tests Dollar Cup of Joe

SavvySugar — Thu, 24 Jan 2008 07:51:13 -0800

Last week, many of you thought that Starbucks' removal of organic milk from their menu wasn't the best move for the company. As part of Starbucks' efforts to identify with its customers, they've been experimenting in the Seattle area selling a $1 "short brew" with free refills. A company spokeswoman says that it isn't part of any business strategy, but it sure seems strategic to cut the eight-ounce short size price by one third (it usually costs about $1.50). If this is the start of Starbucks shaking off their expensive rep, I'm all for it.

News Flash: Starbucks Aufs Organic Milk

SavvySugar — Wed, 16 Jan 2008 07:56:30 -0800

Starbucks announced they'll no longer offer organic milk as of February 26. A memo that went out to employees read, "If a customer requests organic milk, let them know that our milk is now rBGH-free." It's supposedly the first change of many as the company tries to get its groove back.

What Would You Change About Starbucks?

SavvySugar — Wed, 09 Jan 2008 07:02:40 -0800

How does an international company — whose stock fell 50 percent just last year — begin to make a comeback? Starbucks' solution is to bring back their big shot. As of Monday the founder of the company, Howard D. Schultz, has returned as chief executive with hopes that he'll turn the company back around.

Aside from sales suffering due to typical economic forces, Mr. Schultz said the company that had started as “quintessentially entrepreneurial” is now “soft." He admitted that Starbucks no longer focuses on the customer and his intent is to concentrate on the "customer experience."

McDonald's is busy gearing up their brand new teams of baristas to make you a cheaper latte this Fall, and Starbucks will need to prove they're worth your extra cash. If you were in Mr. Schultz's shoes, what changes would you implement for the suffering chain?

How Much Is That Milk in the Window?

SavvySugar — Fri, 04 Jan 2008 09:42:56 -0800

With all the research that's been done on dairy and weight loss, I didn't think there was a silver lining to my milk aversion. Turns out I'm actually saving a lot of cash by ordering soy in my lattes. Remember when Starbucks raised their prices in August? They blamed the extra nine cents per drink on increased dairy costs.

Some people are even cutting their milk consumption so they can afford to drive their cars. Sound extreme? Consider this comparison:

Even with gasoline prices soaring, milk still tops gas prices. The nationwide average for a gallon of whole milk is $3.80, according to the U.S. Department of Agriculture. That dwarfs the nationwide average of $2.99 for a gallon of unleaded, according to AAA.

The cost of other food and non-alcoholic beverages also rose over the course of the year. Have you noticed?

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