Following the recent Starbucks news of more store closures and more layoffs, Kevin Coupe says CEO and founder Howard Schultz must go. His argument comes down to Schultz’s near-sighted business vision. It’s worth a read. Here’s a snippet…
It is my sense that Starbucks has lost its way, and that blaming the economic downturn misses the point. After all, great brands and great thought leaders find ways to transcend these kinds of challenges, profound as they may be. They find ways to reinforce the differential advantages of the brand, and to see the challenges and opportunities for strategic innovation.
Since Schultz took back the reins of the company a year ago, it has seemed like management has embarked on a series of tactical decisions designed for short-term fixes rather than long-term growth.
And things just keep getting worse for them as competitor Duncan Donuts recently announced that their coffee had beaten Starbucks’ brew in independent taste tests across the country. Add to that McDonald’s recent low-cost 
entry into the coffee drink market and our cultural darling, Starbucks, is in a tailspin. If they don’t quickly figure out how to deliver fresh, unique products with great value then they won’t come out of it. Even with all that Starbucks loyalty. And it will be time for their icon, Howard Shultz, to go.
Whether you’re a coffee shop or a church, these tough economic times are flushing out who’s really adding value to their communities and who isn’t. I feel for the many churches who have a great history but find that their story isn’t resonating like it once did. They are the Starbucks churches who are coasting on all the multi-generational loyalty they’ve built up through the years. But it seems to be fading.
On the other hand, it’s not hard to spot the innovative Duncan Donut churches out there. They’ve figured out ways to better connect to the soul cravings in their community and are bringing out more powerful Biblical solutions. Solutions that are helping people make sense of their life. As a result, they’re growing and thriving in spite of tough times…just as Duncan Donuts and McDonalds seem to be.
I read this post the other day and wondered how Starbucks may have started setting itself up for disaster when it started building drive-thru’s. I recently heard they may be starting a dollar menu too, which just seems like a bad idea. It’s not their brand.
Which may apply to the Church in that innovation is good, but every local church has a story, a vision – a brand – that shouldn’t be forsaken in the name of innovation.
Phil Cooke posted an interesting blog piece yesterday titled, “Survive this financial crisis through the power of a strong brand.” It’s here. It reminded me of this post, and draws together some thoughts on Starbucks, branding, and the Church.
Lex,
Thanks again for your insights. The Phil Cooke stuff is interesting for sure. I hadn’t heard of him. Thanks for the link and insight.
It is becoming more and more clear this issue of clarity of values and purpose is a big key in any environment especially a tough economic one like today. People migrate to clarity in uncertain times.
Thanks again.
Ed