Starbucks: We Don't Hang Out There, Anymore

"[Restoring the Starbucks' brand] ... also means reinvesting in comfort and amenities for people who want to hang around."  From Harvard Business Review article "How Starbucks Devalued Its Own Brand," by B. Joseph Pine II and Louis-Etienne Dubois.

From financial performance to employee relations, Starbucks has mutated from the setting to have coffee and more to a troubled business - and brand. Pine and Dubois attribute that to the compromising of the in-store experience aura to profits. 

There was a time when we hung out at Starbucks. Like the old-fashioned book store it was a place to schedule meeting up with friends in a genteel environment. We could also bring in our PCs to do work, with the pressure of the office, including the home office, seemingly off. All that was worth the premium price of the beverages and food treats. There was a mood lift.

No more. The seating - hard-backed chairs - has no ethos. Electrical outlets aren't so plentiful. The staff seems distant. The interior decorating lacks ambiance. The last three times I was in Starbucks I didn't feel receive the emotional ROI I used to. It will be a while before I return. That will be when word-of-mouth on my networks gush that Starbucks is back. 

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