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Starbucks’ strategy had gone off the rails. Happily for Starbucks, the solution to its flagging performance is in its mission statement.
In its 2008 annual report, Starbucks acknowledged a decrease in customer traffic in the US and Canada due to internal and external factors. Their response was to close stores in the US, restructure its upper management, and make changes to the food and beverage menu.
Two missions?
In theory, strategy should flow from a company’s mission statement. In the case of Starbucks however, this is not an easy task. Why? Because the company has two of them. The first appears on the company fact sheet dated February 2008:
And the second on their website:
“To inspire and nurture the human spirit— one person, one cup, and one neighbourhood at a time.”
So from the get go, the company is running in two different directions.
Let’s assume that the first statement which refers to offering the finest coffee in the world is outdated, because it surely doesn’t. That leaves us with the second statement: a somewhat abstract declaration. Its accompanying guiding principles refer to:
- quality coffee;
- a perfectly made beverage; and
- being part of the community.
The grade
Using Starbucks’ own measuring stick, how does it stack up?
First, the coffee: More often than not, I hear the words “strong” and “burnt” associated with Starbucks coffee. My experience with their caffè mocha, my preferred drink, is that it is an overly sweet inconsistent drink. Sixteen years ago when I was living in Vancouver, Starbucks was a destination where the in-crowd sipped lattés. Since then, the competition has evolved, and our tastes matured. Starbuck’s has updated their interiors, but the coffee is the same old, same old. So – quality coffee, perfectly made to inspire and nurture? Starbucks gets a failing grade.
On the community side, I think it deserves a better mark. It is after all one of very few environments where professionals, families and those who are just looking to read while slowly sipping, co-exist. The stores, at least in Oakville, also support local events.
Why does Starbucks insist on wandering in the wilderness by continuing to introduce substandard fare? In June 2009, it offered a new line of food with its inspiration drawn from real bananas, instead of banana flavouring. And what possessed them to introduce instant coffee dressed up like the 1970’s version of Sanka? It hardly screams quality.
Practice what you preach
The Starbucks mission is to inspire and nurture. Why not do just that? Offer great freshly brewed coffee, properly sweetened consistent drinks and lose the Sanka. And why not purchase baked items made fresh by local bakeries? That would be a leg up for the community, wouldn’t it?
Until Starbucks returns to its mission statement, its unfortunate reality is to be the McDonald’s of mid-level coffee. Found pretty much anywhere, nothing special, just something familiar.
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