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A Humble Plan to Fix Starbucks and Their Financial Woes

Before I begin, let me express that I am not necessarily a Starbucks fan, nor do I avoid their coffee.  It's kinda pricey, but it tastes okay.  If I were to boycott Starbucks altogether, they would earn approximately $4.00 less each month, which is hardly "make or break" material.

I have read recently that Starbucks is experiencing some measure of difficulty, and they've closed a lot of stores across the country.  I have a plan which just might help to turn the tide.

1. Taking a page from the McDonald's playbook, why not create a "Happy Funtime Coffee" for kiddos?  From what I gathered in my marketing classes in college, if a company makes kids happy, the family will surely follow.  You want kids begging to go to your stores.  There's no harm in providing a $2.50 mini cappuccino for toddlers, right?

2. Next, give some thought to adding a character to your lineup, a la Burger King, Jack in the Box, Ronald McDonald, etc.  How about these suggestions?

The Starbuckaroo - friendly, caffeine-addled cowboy who lives on a dude ranch and grows coffee beans

Twinkle, Twinkle Little Starbucks - clearly, this campaign could be aimed at capturing the burgeoning toddler coffee market segment

When You Wish Upon a Starbucks - for older kids - inspires them to chase their dreams, fueled by a grande iced mocha

3. Lastly, IT'S JUST A CUP OF COFFEE, people!  Based on friends of mine who are coffee aficianados, Dunkin Donuts' coffee is probably as good as yours - they probably charge a fraction of the price.  Maybe you should even consider adding some donuts to your menu if you haven't already?  You could supplement your ridiculously high profit margins.

I hope you will take these suggestions seriously.  I think any one of them could save some jobs.  :)

 

P.S. On another note, could someone explain to me what the heck happened to the McDonald's crew of characters that was so popular in my youth?  I have seen Ronald pop up from time to time, but what of the Gremlin, Hamburglar, and Mayor McCheese?  That epic tale of good vs. evil played out across the ages on commercials when I was growing up.  I don't even understand the relationships of the various characters, frankly, but I do know that the Hamburglar is likely in jail by now.  Maybe that's why the storyline fizzled out?

 

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Comments

I am not a regular patron of Starbuck's either but recently I did drive thru because it was on my way somewhere, at McDonalds I am accustomed to seeing the add my change to the Ronald McDonald house for the Hospitals.. .I think thats awesome,  At Starbucks drive thru there was a large gallon jar with a sign taped to it.. TIPS PLEASE.      I thought Excuse me?  I'm driving thru?

Posted by South Austin Real Estate Blog, (Sky Realty Austin) 9 months ago

Darling Jason....I consider myself a coffee afficianado - and I can tell you Starbucks is not like DunkinDinkin donuts...lol.....I come from the land of turkish coffee.......where the aroma is your first shot of caffeine...:-)  But clever and creative with the kiddykoffee.......:-)

Posted by Liz Moras ~Chilliwack Realtor, Chilliwack, Hope, Langley, Abbotsford (Harrison Hot Springs, Cultus Lake) 9 months ago

I't amazing how this thing has affected the untouchables, Starbucks, Microsoft and other major warriors.  Love the ideas! 

Posted by Larry Bettag - Cherry Creek Mortgage 9 months ago

Hi Jason. Loved your ideas; I'm not sure Starbucks will.

Posted by Bob Foster (Century 21 Lanthorn R. E. Ltd. Belleville, Ontario) 9 months ago

Jason

Starbucks was  a true phenomenon...they bucked traditional retail rules and broke the mold. They would have multiple stores within a few city blocks of each other in major metro areas. Sometimes across the street from one another!   They over-saturated the market...it worked for a little while.

Sorry I haven't been to Active on Actrive Rain for a while so I am back. I do read your blogs . They are always good!

Posted by Trey Thurmond, College Station , Texas Homes (Classic Realty Associates) 9 months ago

Jason, the mini-cappuccino suggestion is cute.  When I was a kid, they scared us with the myth that coffee would make you stop growing. 

Posted by Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate 9 months ago

Or they could make coffee that doesn't turn bitter...say use Mc Donald's coffee...which is Farmer Brothers (I used to work for a coffee company out of college)

Posted by Karen Parsons-Fiddler Broker/Realtor (Great Western Realty Group) 9 months ago

Hmmm, get the kiddos hooked on caffeine at an earlier age. Sounds like a roudy bunch:) I don't drink coffee so I really don't have a stake in this. I did miss out on the deal of the century. When I owned a Tae Kwon Do school in Seattle- one of our student's parents was helping Starbucks get started. This was when they were just in Seattle. He was going to take them public and told us we could buy penny stock in the company because they were going to go national.  My X said: Coffee from Seattle is not going national :( so he would not let us buy any of their penny stock.

Posted by Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes (International Properties and Investments, Inc.) 9 months ago

For my money Dunkin beats their coffee almost every day, as long as they prepare it the way I ask them to of course.

Wow Nestor, that's some story about Starbucks penny stock; but no sense crying over spilled beans [sorry could not help it]

Posted by Diego A. Perez (Connecticut Lawn Painting) 9 months ago

The Starbuckaroo

LOL

That should be worth 500 points right there!!!

Posted by Bruce Brockmeier - Coached By Crouch (Internet Marketing Consultant to REALTORS®) 9 months ago

Jason - I once saw a dollar figure of the amount a person would save in a number of years if they cut their Starbucks habit from a seven day a week habit to a 2 day a week habit.  It was unbelievable.  With such a good reputation for great coffee that Starbucks has, a little innovation and a few changes wouldn't hurt.  I think your suggestions are good ones!

Mary

Posted by Bruce & Mary Smith REALTORS® Savannah Lakes Village McCormick SC (Savannah Lakes Homes) 9 months ago

Jason, It seems as if all have fallen on hard times. I do like the starbuckaroo...

Posted by Michael Thornton - Nashville, TN area Home Inspector (Complete Home Inspections, Inc.) 9 months ago

Jason - just as long as they don't clone that eerie Burger King, what a creepy character. But then, there are some creepy charactes that are behind, and in front, of the counter at Starbuck's. I guess I could use my Starbuck's gift card. Not sure if it would help them, but, it would help me.

Posted by Mike Saunders (Keller Williams Realty - Greater Athens) 9 months ago

Jason,

I think I am seeing a theme starting here......Yesterday it was all about a 2 pound donut and today it is all about coffee...........HMMMM I think I will head off to Krispy Kreme for a dozen donuts and come home for coffee.

BTW, don't forget to take the wife somewhere special today.

Posted by Don Rogers REALTOR®, GRI O'Fallon MO & St Charles County MO homes (RE/MAX Gold) 9 months ago

The Starbuckaroo - now that is some brilliant marketing Jason.  If they decide to go with it, I hope you get some proceeds from it :D.

Posted by Kristin Moran, San Antonio,TX~Real Estate 210-313-7397 (Owner - RE/MAX Access - KristinMoran@Remax.net) 9 months ago

Jason, if Starbuck's wouldn't charge for their "free wi-fi", I might go back. But Latte Land is just as good, friendlier, and has truly free wi fi. Bye-bye starbuckaroo.

Posted by Maria Morton (Prudential Kansas City Realty) 9 months ago

I never drink coffee, so I'm afraid my money helps them none. I think this is a great idea for marketing. I don't have children, but the only thing I can think is, if I did have children do I really want to deal with them while they are all hopped up on coffee?

Posted by JL Boney, III Columbia, SC Real Estate (Russell and Jeffcoat) 9 months ago

I say cut the prices because it is over the top to pay that much for water and beans!

Posted by Paddy Pizappi PineBush & Hudson Valley NY Real Estate (RJ Smith Realty Real Estate Solutions) 9 months ago

Jason I remembern those characters and wondered myself where they went. But hey things change right? As far as there coffee I think they charge to much and now McDonalds now has there Premium Coffee that taste just as good.

Posted by Jeannette Neerpat, e-Pro Coral Springs/Parkland Real Estate (London Realty Corp) 9 months ago

Starbucks coffee is overprices and TOOO strong for me.

Posted by Rebecca Gaujot Lewisburg WV Realtor (Coldwell Banker Stuart & Watts Real Estate) 9 months ago

LOL! I can't believe that YOU are suggesting that children be given caffeine! Aside from that, I personally think caffeine is harmful to the human body. I have to take a lot of medication for Fibromyalgia, yet I can't have caffeine! I won't bother with details, but caffeine IS a drug, and I think more people should take that seriously.

Posted by Lisa Hill (Daytona Beach Real Estate) (Florida Property Experts) 9 months ago

Jason...I think you have a plan.  Someone with a level head should intervene!

Posted by William Feela Realtor 651-674-5999 No. Branch,MN (WHISPERING PINES REALTY) 9 months ago

Jason,

You might have something but I doubt Starbucks will see it your way! I love the Starbuckaroo..you should get royalties on that one!

Posted by Dorie Dillard: Canyon Creek & NW Austin Living (Coldwell Banker United) 9 months ago

Jason - I don't drink coffee, but I recently talked to somebody that works at Starbucks and they said that all kinds of cutbacks are occurring. from cutting the part timers with full benefits and reducing managers etc. Yes I'd have to say they are feeling the crunch. (except you'd never know it at the nearby Starbucks - every time I drive by their drive through is packed full ~Rita

Posted by Kenna Real Estate ~ Denver Real Estate 9 months ago

Jason,

I love coffee. When I do want the "good stuff" i'll pay 2 bucks  for a cup of Pikes Place coffee at Starbucks.

I don't see the promo of caffeine a hit with today's youth. But when you think about it, we are one fat around the belly of a a nation stuffed with cheese, sauce and beer.  So maybe your idea will work. Maybe they could squeeze some syrup, cream and carmel in the coffee while they're at it.

Posted by Greg Nino Houston Texas (RE/MAX West Houston Professionals) 9 months ago

Oh how I miss the hamburgler! My fave marketing slogen had to be: Twinkle, Twinkle Little Starbucks

I think its a fantastic idea to market to children...everyone else is doing it right? ;)

Posted by Kelly Noble (Campbell Homes) 9 months ago

That is funny because I have not seen or heard about the McDonalds crew for a LONG time.  As for Starbucks... you may not go, but I spend enough there for you and me both.

Posted by John Cannata - LegacyTexas Mortgage Sr Loan Officer - Frisco Texas ( 972-325-4912 Also available evenings and weekends) 9 months ago

Jason:  I love this post, how come you don't have all your buttons at the bottom?

You had me laughing with the "$2.50 mini cappuccino for toddlers"

A friend of mine who is in marketing came up with a junior version for Moe's, something very much like what you are describing it.  It has been so succesful, the company is taking it national.

Thanks for the laugh.   Tere

Posted by Tere Rottink (Wainwright Real Estate) 9 months ago

It looks to me that Starbucks priced themselves out of the market. In these tough economic times, prople are using more discretion in their spending.

Posted by Cheryl Powell- SFR,ABR,Broker,Realtor- Remax Signature- Concord NC Real Estate (RE/MAX Signature Properties - The Powell Team) 9 months ago

I think the best move for Starbucks is to downsize. It was never sustainable to have one on every corner. 

Posted by Casey Wright (Wright Brothers Communications) 9 months ago

Jason,

Looks like Starbucks could use some of your ideas. Frankly, their prices are rather high and never really understood how they were able to sell this long their product for that.

Posted by Esko Kiuru - Las Vegas NV Mortgage Consultant (FHA, VA, Conventional, Refinance, Jumbo) 9 months ago

Hi Jason...I absolutely love Starbucks and think they have the best coffee, but rarely go there because of their prices. I think making their prices more reasonable (especially considering the current economic times) would help them save their company.

Have a great day,

Anne Rains

Posted by Anne Rains -Bethlehem Georgia Real Estate Agent (Real Estate Agent for Keller Williams, Atlanta Partners) 9 months ago

Jason - Don't forget the Fry Guys (a much later edition) and I believe the Gremlin you're referring to is actually Grimace, the purple blob monster thing that loved Shamrock Shakes.

Posted by Matt Stigliano (RE/MAX Access - San Antonio Real Estate Rockstar) 8 months ago

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