Have you heard about Starbucks’ new retail experiment? The coffee chain that spent the last decade stamping out carbon-copy store locations is “de-branding” a number of locations, starting with a Seattle location, now called “15th Ave Coffee & Tea.”
Gone is the familiar green and white mermaid logo. So, too, are the automated espresso machines. In their place is a “no-name” logo and an old fashioned La Marzocco espresso maker, a beer and wine list, and a whole lot more.
Is the world’s largest coffee retailer experiencing a mid-life crisis? A case of branding remorse? Back in 2007, a memo from Starbucks founder Howard Schultz regarding the “commoditization of the Starbucks experience” was leaked to the press. Some changes were made right away across the Starbucks empire, but not on the scale of what the company is attempting at 15th Ave. Coffee & Tea.
John Moore at Brand Autopsy, a noted observer of the Starbucks saga, suggests that this is all part of the company’s effort to reclaim its soul:
This is clearly an experiment, a four-wall enclosed retail petri dish. It’s a way for Starbucks to RE-learn some of the personal touches it has lost due to making so many compromises in order to grow to over 16,000 locations in 40-plus countries around the world.
As part of its laboratory experiment, Starbucks is introducing some new ingredients to its retailing mix, including:
- serving alcohol
- roasting and brewing coffee in small batches
- conducting coffee cuppings
- hosting live entertainment.
This experiment brings up some vital questions that many retail chains ought to consider, especially as they find that their carefully-coiffed customer experience no longer brings the foot traffic it once did.
- Is there an inherent limit to the appeal of a globally consistent customer experience?
- Is it possible to “engineer” what we hope customers will perceive as an unscripted customer experience?
- Can large retail chains, which live and die by highly refined processes, large-scale supply-chain managment and thin margins, successfully incorporate non-scalable merchandising techniques?
- Or, to put it more directly, can a mega-chain create a mass-customized customer experience?
Perhaps Starbucks isn’t even asking these questions. Pilots are meant to be just that: experiments that help us understand what customers do or don’t respond to. Scaling up, rolling out is another artform altogether.
What do you think of Starbucks’ latest incarnation? Have you visited the new store?
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The only way this can have any real chance at success is if Starbucks Corporate “lets go.” Each individual outlet would have to have almost total control, because you can’t “localize” a “neighborhood café” in Montreal, Ontario from Seattle, Washington.
I believe it’s John Moore at Brand Autopsy, not Dave.
D
@Jeffry, I agree. If this is about achieving some level of authenticity (which, presumably, is what some patrons are looking for), it’ll be tough to pull off with a centrally-controlled approach. However, the they mesh smart local management with the cost benefits of centralized purchasing, real-estate management, etc., they might have a shot.
@Daylin, thanks for that catch. In the spirit of “publish then edit” I’ve corrected Mr. Moore’s name.
I am not a lover of Starbuck’s coffee but love the atmosphere. To me, coffee is more than just a drink – it is a social “event”, relaxing with good conversation. Coffee is good in any type of weather. We are Texans and have brutally hot summers but coffee always tastes good, any time of day. It is “fun” to try different flavors or types to compare & try to taste the differences in the beans. Different coffees from different regions have separate tastes. A cup of steaming coffee, yum.
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