Starbucks will soon be offering a new stainless steel card. It’s available beginning this Friday, and will be sold exclusively by Gilt.com. There is only 1,000 of these cards, so they’ll be gone super fast. I can’t even imagine that I’ll be lucky enough to get one!
Some readers may recall that last year Starbucks had a similar offering, producing 5,000 steel cards available via Gilt.com. Just like last year, the stainless steel card retails for $450.00, and comes with a $400 balance pre-loaded on the card. Also, once the card is registered, a Gold-level MyStarbucksRewards membership is unlocked. Obviously, it’s a pretty incredible item for the serious Starbucks card collector or enthusiast!
The official Starbucks.com newsroom article on this steel card is here.
If you want to browse through previous articles about Starbucks Card, click through here.
So who’s going to try and get one? I think I will try but the truth is, since there is only 1,000 of them the odds are against me that I’ll be successful.
(Open thread – talk about anything Starbucks related).
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@Bob Dobalina –
It did go for sale at 9 am. It really did. I haven’t heard anything to suggest that Gilt.com employees snapped it up first. As far as I know, there were 1000 cards, and about 600 (??) went for sale at 9 am. I do understand that were were a few sold early. At 9 am last Friday, I was at the Gilt.com website. I put one of these special cards in my Gilt.com shopping cart. And then, I had a moment of wondering if it was even possible to put a second one in my shopping cart, and so I went back and tried to do so. They were already gone. As far as I can estimate, all 600 sold out in about 60 seconds. Actually, I think I was bizarrely lucky to have gotten one through the public link at 9 am, but I really did. Yes, I can agree that 1,000 was too small of a number of these cards because the demand was so huge – Starbucks knows that there are tons of card collectors out there. But it was not the case that they “never went for sale.” They did. And they sold in 60 seconds. I’m sorry you didn’t get one.
@Melody, DadCooks & Denise – I didn’t hear anything about the pastries, but the store wasn’t extremely busy today and the pastry choices were slim pickings. So Denise….. You may also be correct regarding the pastry. I was a bit surprised today. I have always said that to the best of my knowledge, the La Boulange items were selling very well. But what’s with all the pastry promo’s I’ve been getting? I know we are off topic here, but is it possible La Boulange is also hurting the company? What’s your opinions if you have any?
Warming up those cross country ski’s Denise? 😉
@Chgo. – I don’t mind at all if we talk about pastries. It’s an interesting topic – I edited the thread to show it as an “open thread” so that the pastry conversation will fit right in.
For a long while, I’ve kind of felt like the jury is still deliberating on La Boulange. Compared with other companies Starbucks has bought, La Boulange seems like they paid too much. In fact, just as a comparison, Starbucks only paid something like $3 million dollars for the company that made the Clover – and that had to have been worth $100 million to them! The young guy from Seattle who sold his Coffee Equipment company to Starbucks, I think undersold it!! But hindsight is 20/20. Teavana as a real product, and an existing store and customer base. Evolution Fresh has been able to expand into grocery stores, growing the CPG business. I think Starbucks paid like $100 million for La Boulange – and as far as I’m concerned it’s still up in the air whether it is working.
Starbucks reports increased food sales due to La Boulange. But obviously we’ve all seen the pushback against La Boulange on MSI & the Starbucks Facebook page. Who knows!
But cutting back on the pastries? Maybe the idea is to bring in more lunch items, and have fewer breakfast items?? We know that Starbucks has been testing new lunch La Boulange items in some San Francisco Starbucks stores. Obviously, I genuinely don’t know, but maybe it’s a matter of limited space and cutting back on breakfast pastries in favor of more lunch items? I’m making wild, wild guesses.
Oh, as to the metal rose-colored cards from Gilt.com – I noticed that eBay is down to 112 of them being listed. I think I had seen that just a day or so, there were like about 140 eBay listings. People are really paying for those cards. Actually, in theory, they’ll appreciate since there are so few! It could be worth it for buyers now to get one for $1,500??!
Re: BOGO (or any other) codes–I use the SB app on my phone and I do a screenshot the minute I see the offer. Then I have it for check out. I even put it on my calendar–no offers get past this girl! 🙂
“Starbucks reports increased food sales due to La Boulange.”
@Melody – I still have no problem with the La Boulange items, except that by the time I get my drinks on weekends, the pastry is already cooled down. Getting back to that part of your comment above…. Increased food sales can be the result of people liking the food, and increased food sales can be the result of people spending more to try them. Once they try everything and make a decision whether they like all or certain items, they might start spending less and go back to their original habits. The BOGO’s and the 50% off promos are fine, but now that I have tried everything that I would like to try, I’m back to spending my money mostly on the coffee. If others are doing the same, then eventually food sales, or at least pastry sales, will start flattening out or plunging. Only time will tell.
Melody thank you for making this an open thread. Just had a sort of interesting experience at my local SB. The other day a partner told me that one of my rewards had already expired when I knew it had not but did not make an issue of it and decided not to call CS. This morning I decided to use the 50% food promo which I knew I did not use and expires on december 10 and again they told me it had expired. The DM was there and I explained to him my experience. He was of course clueless as to why it would happen and said he has not heard of these issues from anyone else. Suggested I call CS which now I will. The DM knows me and I was sort of taken aback that he seems not really interested in my issue even though he told me where to find the CS number (already know it anyway). Obviously, from other posts people have been having these same issues.
@Purple1 – I saw on MSI (at some point – I’m not sure I could find them again) a couple of threads about coupons expiring early, and I’ve seen mention of it on the Starbucks Facebook page too in the posts by others section. I’m a little embarrassed to say that I almost never use those promos that are loaded onto my phone. I constantly forget that I have them. But it seems like something is going on with expiring promo coupons because I’ve seen mention of it on a couple of different places. Since that’s the kind of thing that is hard for a DM to remedy, I can see why CS might be best? However, they should definitely have an interest and awareness in case of other customers have the same concerns.
This is a bit redundant but to be exact: I was told by an sm and a dm (as I asked: why is the pastry case so empty? at the time I usually go and it’s fairly abundant..) that, at least at this particular store, they were told to cut back on the pastry order by 1.5-2% and on STAFF by 1%! So, that’s that. big mistake, imo. (I’ve already watched potential customers walk out because the lines were so long or the partners so inexperienced, they didn’t know what to do….the partners.)
Melody just got off the phone with CS and they were quite nice and said they would contact the store to find out why the promo expired as it should not have and they gave me back a star. Denise R what a crazy and stupid decision in my opinion. We have not had issues with the pastry case being empty, but I can absolutely tell you that I have seen people walk out, long lines, and many partners inexperienced and I feel the SM or training partner has not kept up with these issues. Melody, I also think the holiday displays could look good depending on the store but around here they seem like the partners were just not into making them look good but only following the directives given by corporate.
@purple1 – A couple of months ago I had an issue at a store with a promo. This stores DM who was actually temporarily in charge of the La Biulange roll out here was actually rather helpful. He contacted somebody above him thru an email right on the spot. The problem was that I couldn’t duplicate the promo existence in the email on my phone. CS just gave me an added reward on my card. IDK….. I have experienced issues with about 50% of the promos and or codes I have received.
@Denise – What’s 1% of staff equate to at any individual store? That is such a ridiculous number. I could see 5% – 10%. But even those percentages make no sense. Cutting a shift down by one person or to 3 partners on the floor, sounds more like 20% – 25%. Cutting pastries down 1.5% – 2% equates to probably 2 pastries per shift. That number seems a bit odd considering the case seems a lot more emptier. Here is what I did learn though about the pastry. They were thawing too many out, and having to throw too many away. Maybe sales are down and their guess-timates at store level on what to put out, is not working well.
@Melody – thanks for making this an open thread. You’re a 10 for customer service as well as content.
Got a lot going on today, so just a short comment that the percentages given to @denise r are bogus, the people are blowing smoke and not wanting to tell the real numbers. Personally I am observing a decrease of at least one full-time equivalent employee and food cases that look bare even first thing in the morning, and the stock behind the counter is way lighter than a couple of months ago. I can also see the defrosting rack in back and it is sparse.
@DadCooks – I haven’t seen a decrease in the number of bodies on the floor yet, but I’m speaking based on one store in particular. But I know it’s coming. I don’t think everybody has been told yet, but I learned this from somebody who was given an early heads up. I thought I heard most partners would be limited to around 20 hrs a week. That would be bad for partners and customers.
I have been also asking about the popularity of La Boulange at this time. It seems that the pastries are selling to some degree, but they are disliked by many. I sense the overall attitude of most loyal customers is that something is better than nothing, and others are walking out with just coffee.
We haven’t launched La Boulange yet – we are scheduled to be the first market in Canada to get it, sometime in FY14 – we’re thinking summer at this point.
As a market who recently went to frozen (I’m on Vancouver Island, so we switched to frozen to cut costs – not sure why we didn’t do so earlier – coming over on the ferry *every* night? Way more sense to do every other day!) I can attest to the fact that one of the goals of frozen is to reduce the amount of food ordered/marked out. Since I control what is pulled to thaw, I can pull less food every night, and pull more during the day if things sell. The amount of food I’m ordering is less than before, but my sales are up. The amount of food I’m marking out is also less than before, and my markout targets have shrunk (by more than 1%, lol). It *was* a learning curve – my pastry case went through some sparse seasons, as did my RTD&E case, and it still does in any big season/sales change. My guess is that the markets you’re in have had the law laid down – they were given time to adjust to both new food and the new frozen business, and now? – less leeway, time to get control over the numbers. Or it could be totally different…
As to the labour, again, I am working with our old labour system, which is not quite as accurate as we’d like it to be. So, when I build a schedule, and forecast how much labour I’m going to need, I’m afforded some leeway in how much labour I actually schedule, which is usually measured in %. Currently, I usually schedule 3% over what I forecast. Again, a guess only, but I’m thinking that the amount of labour allowed is roughly the same (ie – I earn 450 hours, I should spend 450 hours, nothing more, nothing less), but when you’re building a schedule in advance, you are no longer allowed the leeway – they’ve lost a percentage or two of labour, and this would show up in the partners’ schedules, as they’re built in advance.
I think I’ve given up hope of ever writing a short comment on here – sorry for the wordiness 😀
@DadC..and @Chgo and anyone: I only repeated what I was told…I actually did not take the time to figure it out. You’re both right about the numbers, of course.
I can say for sure the customer service, at least in the bar-end (drink-making ability or even knowledge of the drink) is definitely declining, and not just in one store. Many times I’ve been in a store (not too busy at that moment but everyone knows how quickly that can change….a line can form in a heartbeat!) when the person on bar was also on the register…back & forth. 🙁 And yes, definitely a decrease in number of partners on the floor at any given time…and mostly they’re 90% inexperienced. I have patience, I am polite, I try and tell them the correct way I either want my drink or that it should be made but, for the prices we’re all paying, I do eventually want it to be correct. I think that’s the norm in any job. ?
As for the pastry decrease/decline….??? I buy one of something, at least, every day….when available. I’m doing my part. I don’t feel it’s my responsibility (obviously) to figure out the corporation’s job. I don’t think my expectations are in any way too high. But I do think someone/somewhere in Sbux is dropping the ball.
@Denise – I’m hoping you didn’t think I was beating up on you for those numbers? I don’t believe DadCooks was either. I wouldn’t disrespect you like that. I was more or less beating up on those percentages that you didn’t make up, but were given. What has me worried, is that a lot of great seasoned people are leaving Starbucks for what they see are greener pastures. Some of the newer, younger partners have me worried about the future of service, especially with less and better partners leaving for good.
Chgo and Denise R and Dad Cooks and everyone – All these questions about long lines, inexperienced partners, fewer pastries, etc. really has to be addressed by corporate SB in a way that will get results in my opinion. Why are partners leaving? I know there have been partners unhappy for many reasons and some use this job as a stepping stone to other jobs, but if SB wants to retain their employees then they have to think about what is happening. Is this an issue only in certain regions? It is true for me that almost every day I experience a partner inexperienced or not customer friendly. But, overall the partners are nice and I have met some great people sitting at my local store. I would not trade that for the weakness in the SB system.
@denise r – I do apologize if you felt that I was challenging you, like @Chgo said I too respect you. You were just the messenger of very poor and IMHO condescending communication by people in the Starbucks management chain.
@purple1 – you are right that these issues need to be addressed by Starbucks Corporate. Unfortunately, they seem to be only interested in the cold metrics (performance numbers) and do not care to look into the personnel issues that are involved, both good and bad. Starbucks has some great people working for them, both at the store level and at corporate, as well as International. However, they are exhibiting a poor human connection with their employees and customers that is endemic in way too many large companies, exasperated when the company is also International. Too many companies are not really paying attention to what is really being said in Social Media. It takes skilled people consistently monitoring the Social Media channels (and I include MSI in that) to properly analyze what is being said. There is a lot of chaff that has to be sorted through to find the very few kernels that will benefit the company and the customer. And another key is that people in the management chain need to feel free to bring up challenges and problems. Any CEO that thinks that all is going well, is not doing his/her company any service. Business is a problem with challenges constantly needing attention.
@Chgo and DadC….Thanks for your words. I didn’t really feel you were challenging me (I know we are 3 of a tight-little group 😉 but I guess I did feel some need to repeat, somehow, what I’d been told, by more than one store. So, thanx for your responses. (and @ purple1)
I went into a Sbux yesterday at ~ 11:30A and the pastry case was not even 1/4 full. There really was almost nothing. I asked the barista about it (an experienced…..now rare! one) and he told me this was not a shortage on their order etc but this was the goal: they need to get down to zero! waste (?) . IF that was the case, maybe Sbux could be a little less greedy in the first place and do as so many (as on MSI) have suggested: cut the pastries by some % near the end of the day. I don’t know their answer but I do know that if I go into a Sbux almost any time of day…certainly not even near closing!…I do expect to get some decent choice of a pastry with a coffee.
And, of course, as DadC….especially was saying: the turn-over of employees and so much inexperience at any time in any store is remarkable!
I did email a couple dms yesterday and immediately got a response, especially from my ‘regular store’. She assured me she never wanted me to go into the store and they have a very very minimal choice. I didn’t send her the picture that I’d taken of the pastry case at 11:30, but I think I will.
Anyway, I appreciate all your comments and I do hope Sbux starts opening its eyes!
Denise R I just sent off an email to the dm after having an awful experience this morning at my local store. I so understand what you have been experiencing. The lines this morning were just disgraceful and people walked out without purchasing. They have cut back partner hours and the SM was in the back and did not come on the floor to help out. He was on the floor when I first arrived and should have stayed on the floor. The wait was just awful. I hope I get a reasonable response from my dm but his responses are not very helpful. SB sure is making a mistake. Penny wise and pound foolish.
I started my employment careers in old school retail (my careers from the 50s to 70s). I have sold everything from guppies to superduty semi trucks and Lincoln Continentals. I mostly worked for companies where I was working for the person who owned the business and even when it was a “big” company (Jewels Companies and Super-Valu) I still knew the “big bosses”. There was a common ethic of training, customer service, and product knowledge. There was never any excuse for shelves to look bare in any way, particularly when I was in the grocery business. If a product was out, you went to another store and got the customer what they wanted. Someone with real authority was always available. Management always backed up the employees, but instilled the subtle skills of handling the difficult customer.
IMHO, this is all a lost art today. Sure the are isolated pockets of companies and individuals that are doing it right. But today, the attitude today is that the customer is out to screw your business and there are a lot more uninformed consumers waiting to be abused.
/rant off 😉
@DadCooks (and others) there is a ton of conversation here that I’d like to get to but I have to run out the door to work.
As to bare shelves, at least in Seattle, I think it is the expectation that you run and get things from neighboring stores. That might be easier to do when you’re near 20 other stores within one mile…
DadCooks – I have encountered what you’re describing – lots and lots of people in retail (and I definitely include some Starbucks baristas I’ve met) who think the customer wants to screw them, and are so uninformed that you can tell them anything. That’s appalling. First off, the customer is much more informed now than ever before – there is a wealth of information online. And you never know who has prior Starbucks experience; connected to Starbucks in someway; or simply absorbing a lot of info through both official and unofficial blog articles. Secondly, good customer service really does mean that people come back, and they tell their friends. Some of the things that end up being full on arguments at the registers simply should not be. But I blame Starbucks management to a small degree – store-level partners have to feel empowered to make good choices, and that means that they can never feel like there will be a world of repercussions from a DM. I believe that some stores, districts, and so forth have got that down – I see that the partners in my area (Julie’s district, Polly’s district, Coulter’s, Nica’s …) are truly empowered, and I see that all over. I was at 4th & Diagonal yesterday morning and had a pretty amazing experience at a store that I almost never go to. But, on the other hand, I just don’t think that every district or store functions like that, and they need Starbucks step in and lift them up, and elevate them to the “Starbucks experience” that Starbucks made their name on.
I have to run out the door – As usually, won’t be back to check on this conversation for a while.
I got a response from the dm re the long lines at my local store. It was the type of response I expected from him- nice but corporate. I was chatting with someone about these long lines and he mentioned he thought SB might be cutting back on partner hours because of the health insurance coverage requirements. Another person thought it is due to the new playback system in the stores. Anyone else get comments that they think it is due to the health insurance coverage requirements?
@Purple1 – A DM in your area actually said that they’d be cutting back on partners hours due to health insurance reasons!?!
That makes it sounds like the goal is to pay fewer partners health insurance and make sure they can’t work 20 hours a week. That’s in complete opposition to the kinds of things Starbucks says about their commitment to health insurance for part time employees – Howard was just on the Oprah Network talking about health insurance and how important it is to Starbucks. Who is this DM in your area?
No Melody I think you read my post too fast or perhaps I was not clear. The person I chatted with re the health insurance coverage issue was not the DM. He said nothing. It was just another regular customer. Sorry for the confusion.
@purple1 – Sorry no that was me – I’m sometimes trying to get ready for work and read blog comments at the same time – or what have you, but I did read that too fast.
Unfortunately too many businesses are or will be cutting hours and personnel because of ObamaNoCare. However, from everything I have read Howard is keeping his commitment to keep health insurance for Partners. It is easy to pick up rumors while in line at Starbucks.
Without official word, my observations tell me that “Playbook” is the labor driver here. What is unfortunate is that when the Holiday Season is over they may only look at the numbers to determine if “Playbook” is working. What that will miss is an objective assessment of how much business was not gained due to labor. Not all quarters that show a growth over a year ago are showing any true real growth. It gets complicated.
Dad Cooks I really did not think that the long lines and reduced partner hours were due to the new healthcare regulations but it is interesting to hear these “rumors” as you say while chatting on a line. I really do think it is related to the play book system. I sure hope they follow your thoughts when looking at the bottom line. Certainly, I cannot see SB wanting to lose customers?
@DadC…..ha! Loved everything you said.
I actually did hear from a partner, (at the 3/4 empty pastry case ~11:30A) that the hrs were being cut back to try and keep them NOT up to 20 (hrs). just fyi.
And as far as what H.S. says (ie: there would never be a lighter roast…) and what he does: sometimes two different things!
@denise r – you are right. Sometimes things are just too coincidental.
I was able to buy a card this year, and have to say I was a little disappointed… Gilt sent the cards with no packaging what so ever!! The shipping labels were glued directly onto the Starbucks box, which is now ruined.
The card is… Everything it is supposed to be! I am thinking of having it engraved with my name, and having that be my Gold card!
@Denise – Do you know when they are going to cut the hours? I’m afraid to ask them. I feel like I’m rubbing it in their noses by reminding them around the Holidays, considering they heard the bad news from me before they heard it from management. Now I wish I wasn’t the bearer of bad news. So far they have been well staffed after opening here, however many are leaving for good shortly. Of course the great ones keep leaving.
@Chgo – as an SM, I would encourage you not to mention anything to the partners because as you mentioned, it is the holidays, and that may be why their management hasn’t told them in the first place. Also, hours are always cut in January. *always* This should not be news to partners or customers. People spend less, so stores earn less hours. Especially compared to Christmas, it’s a pretty drastic difference. Who’s to say that it’s just a case of an actual number being assigned to it this year? Maybe that particular store manager decided to be fair and axe hours across the board so *everyone* works an even amount. Who’s to say that the partner who said something to Denise didn’t mishear things, or have an axe to grind, or take something out of context? Or he/she may have an unscrupulous SM/DM who *are* planning to use Obamacare to limit partner hours. These are just some possibilities – without the whole story, I hardly think it’s wise to potentially cause more turnover by telling partners their hours will be cut, without any solid facts/reasons why.
When I was a barista, one of our high-powered, realty clients told me matter of factly that it was too bad I picked this store to work at, as it would be closing in 3 months. I decided not to listen to him, but the girl on bar overheard him, told everyone she knew, and then my SM had to deal with constant customer conversations about it, and baristas trying to transfer/quit. As it turned out, the real story was that we also had a lease for the empty store space adjoining ours – (totally weird – originally the store was going to be bigger, and something happened, and they divided it up, but didn’t use the space or something) and now the lease on that space was not being renewed, but the lease on our store was. He knew part of the story – the Starbucks lease was not being renewed – but he didn’t know some other crucial details.
@Rebecca – I hear you and I get it. I brought it up only because it was my understanding that it was no secret. Some partners in stores in other districts already knew, and others didn’t. I know all too well from my own job how things get blown out of proportion, and little things snowball into things they aren’t with a lot of lies added to it. I don’t know anything about the Obamacare aspect of what is being said or anything like that. Personally…. I have come to respect many of the partners I know like they were friends, family or like they were one of my kids. I’m not into the gossip, especially the stuff whether true or not, that can hurt people. I communicate a lot with them, and my only purpose of bringing it up in the first place, was for conversation, and because I care how they will be affected.
Regardless of what is going to happen, I don’t believe this going to be a typical, happens every year after the Holidays situation. I think this year and 2014 is going to be different. It’s just my opinion which means nothing anyway. But from my own observations, I think Starbucks has gotten themselves in way over their heads, especially in the last year and made many mistakes. Those mistakes are going to cost somebody, and we know who usually gets the short end of the stick. Just my 2¢. We’ll see! However…. None of this addresses why partners are leaving in droves.
@Rebecca – I agree with your comment and I hope you understand where @Chgo and I are coming from.
Back in “Pioneer Days” when I was in retail, the after the Holiday slump was much as it is now. However, the smart retailer knows how to take advantage of the situation. Two key points, having enough staff coverage and offering value, sprinkled liberally with a positive attitude. I looked forward to January to set a pace for not just a good year, but a better year.
I still today see a few retailers, large and small, that refuse to follow the false paradigm of a Winter slump. IMHO, it is a failure of management if they are expecting business to decrease. Guess what, that is just what they will get.
@DadCooks – Let me add this to what you had said….. Tell me if you agree or not? Aside from the Holiday merchandise, why should anybody assume that business will decrease, when especially in colder climates, hot coffee and drinks are popular in the colder season. Sure Starbucks has cold drinks that are popular in summer, but hot coffee is their core business. As far as I’m concerned, people consume a lot of hot beverages in the colder months of the year. I don’t believe that after Christmas and New Years, people just aren’t in the mood for coffee and a nice cozy place to hang out for the season. How can their ever be a winter slump when it comes to anything coffee related? It makes sense for some businesses, but it makes little sense to me in regards to what Starbucks is selling.
@Denise – I was in PR today around 11am, and the pastry case was almost empty. Just some cake pops, mini scones and some cookies when I left.
(pardon the typos)
@Chgo, I agree. Starbucks could be a great place to decompress from the chaos of the Holidays and if folks would allow a little extra time in the morning so that they could enjoy their beverage and treat, that return to the cube farm might be a little easier.
With the special January free coffee and free espresso tumblers Starbucks needs to do something to put some money in the register. Lack of choice in the pastry case and limited sandwiches will not cut it. Starbucks can promo and BOGO all they want, but without adequate products that people really like January will not have good sales numbers and it is the dollars today that determine the hours tomorrow.
An observation: There is a Barnes & Noble Cafe within 100 feet of my regular Starbucks. I have been noticing that it is always full of people (sitting around nice square and rectangular tables) and the pastry case is always full and being refilled. Even at Mall closing, B&N still has customers sitting and enjoying coffee and sweets. Starbucks is dead.
@Chgo & @Dad – I am not in Chicago (or the US at all :)), so I’m sure you are more informed than I am, and really, different markets have different goals/targets/strategies. I can see where you’re coming from, absolutely – my customers love to chat with me and my partners about anything Starbucks-related. All of my regulars know who I am, and with news about hours cuts or health care related questions, I have several regulars who would accost me, erm, take me aside 😀 and get the info straight from me. And then email my boss about it 🙂
From the comments I’ve seen from both of you here, I didn’t get the feeling you were big gossips 🙂 I guess it was just a friendly reminder that even a well meaning comment about something as important as hours could have a big effect on morale/turnover, so just be careful.
As far as slower sales in January, there are lots of factors. We sell a LOT of holiday merchandise (my store is affected more so than most – we’re at a mall :)) Our Christmas sales are driven by merchandise, and the holiday beverages. My sales mix is especially high espresso at Christmas time, not to mention that people are more rushed, and more likely to grab food, add an extra shot or flavour etc.
In January, people switch back to brewed coffee and tea in a big way. New Year’s resolutions affect us as well – how many people do you know that resolve to ‘make coffee at home to save time and money!’ I usually see regulars cut back from every day to 1 or 2 days a week. It creeps back up at the end of January, early February as they admit defeat on their resolutions 😉 They’re trying to lose weight, so they forego the pastries, and they’re keenly aware that extra shots are $0.75 more, and since they’re looking to pay off their Christmas credit card debt, every $0.75 is dear to them.
January is usually the time of year I see the “How to save money at Starbucks” articles in the paper/on the internet, and deal with lots of ‘condiment stand lattes’, trying to purchase ‘just a tea bag’ and then asking for hot water at the bar etc.
People just don’t open their pocketbooks easily in January – we’ve tried a lot of different tactics/deals – the brewed coffee tumbler is an attempt to keep people buying food/keeping Starbucks a daily habit 🙂 – we often run hot breakfast deals, and we still see the same trends – food & espresso down, brewed tea & coffee up. Perhaps we haven’t hit on the right formula yet?
My store is a bit of an anomaly in that my sales literally double for 10 weeks, and then literally drop back down again within 2 weeks of Christmas. Not every store will see such a drastic difference – for me it means I take vacation in January, and encourage my partners to do the same. I also keep this in mind when I hire, and definitely don’t mind hiring partners who are going back to school in January. Doing a Christmas at my store is also great experience for people wanting to move up, so I tend to write PDP’s with my partners in Oct/Nov, let them run with them over Christmas, and then have them ready to promote in Jan.
I slash my food as well (though, with freezers, it is easy for me to thaw more food if it’s selling, so my case should never be empty – yay!), and often cut some low sellers so that I can bring in more of the items that do sell. But I can also say that I have seen stores that have not done these things and overspend on labour and waste a lot of food. Once again, I’d assert that perhaps this year Starbucks is ensuring everyone is following strict guidelines. Perhaps they are being a bit heavy handed, or there are stores that don’t understand how to put those guidelines into practice.
In summation, there *is* a sales slump, as hard to believe as it my be. We definitely have opportunities in how we deal with that slump, and I agree that empty pastry cases/less people on the floor will perpetuate the problem rather than solve it. I’m fairly confident that both partners and customers would like to have a different solution, and I believe we will come to one. Hopefully sooner rather than later!
@Rebecca – I wasn’t assuming you meant we were gossiping. We’re just a bunch of adults here sharing in a conversation. I think it’s productive. I tend to stress that much of how I feel is based on personal opinion. We all have opinions of our own. Who is to say who is right or wrong when it comes to an opinion? We can choose to have opinions that are in harmony or differing, but as far as I’m concerned, we’re good! I have no problem with you. In fact, I like to hear other peoples opinions because some times there is more truth in what other people have to say. That gives me an opportunity to see the big picture and try to make sense of what is truth and what isn’t. You don’t have to convince me what you meant. I will respect what you say whether I agree or not. Be yourself! I don’t know everything. Sometimes if I just listen to what other people say, I may actually learn something I didn’t already know. 😉
@Chgo: not surprising about the PR store. I hope you let your dm know…..our dm has been very responsive. (was not the Mt P store where I saw the BIGGEST shortage of pastry on a Tuesday at 11:30A)
I agree (well, naturally 😉 with you and DadC…about all this.
And as far as January being such a big New Year’s resolution month: I think that’s true in theory, but not so much in reality. I worked part time for quite a few yrs as a Personal Trainer in various gyms, park district and otherwise. The slowest month for new memberships? January. Many people are out of extra money to use at a gym and even those resolutions, unless you’re already a gymrat in the first place, maybe the first week a little bump in usage but otherwise? slow. (or, just the regulars)
@Denise – Most retailers have to cut back hours in January. And it’s what describe. People overspend in December and then cut back in January. I would expect that hours will be cut across retail business all over, regardless of industry. January is a very slow retail month, generally speaking.
@Melody – I have a hard time believing that people cut back on everything. To me, going to Starbucks is something normal that people do everyday. Sure you lose those customers spending extra during the Holiday’s on Starbucks drinks and Holiday Merchandise, but in my experience, Starbucks returns to normal after the Holiday’s. I don’t see any decrease in customers coming in. It appears they return to buying what they normally would. I know there are statistic’s that say people spend less after the Holiday’s, but I don’t know that I believe everything applies. For one, people don’t splurge like they used too for the Holiday’s. That gives them more room to continue spending on things that they normally do the other 11 months out of the year.
I could see increasing labor during the Holiday’s, then cutting back to **Normal**, but labor on the floor during shifts, doesn’t appear any different now then during the rest of the year. So how do they cut back to normal, when there was no increase in the first place? I was actually told that Starbucks was going to hire before and then again after the Holidays. Since La Boulange, they don’t have enough labor on the floor as it is. If the answer is to run out of La Boulange items within 5 hours of opening, to justify cutting labor, then Starbucks is making a huge mistake.
Let me add one more thing to the notion of less spending after the Holiday’s. Speaking only of the opinion of somebody who frequents a Clover store……. Reserves can be an expensive guilty pleasure. Some view Starbucks as being expensive 12 months out of the year. Prices in general in Starbucks continue to climb, and La Boulange items are no exception. No matter how much the prices go up at Starbucks, that hasn’t stopped the regular Starbucks crowd from spending regardless of what time of year it is, so I’m having a hard time believing that the Holiday’s will do much to affect spending after December. I really do believe that at least for now, Starbucks is one of those exceptions. I think it’s one of those places where normal spending continues, and normal spending justifies normal spending. Without any increase in labor that I have seen, at least to me, I don’t see any justification to cut labor from where it is now. Of course it isn’t my decision, and I could very well be wrong, but I just don’t make sense from what I see on a daily basis unless they give us less to buy in the future.
I am agreeing with what Chgo said about Sbux and ‘normal’ spending and what often appears to be too few partners on the floor. With the exception of huge, continual-customer Sbux (like Streets of Woodfield), most of the cafes have the usual ebb and flow…..sometimes one customer at a time and then in a flash, there’s a line out the door. I see this in every store I go to, and not really much different in December….maybe spending more but mostly the same customers coming in for coffee (or whatever drink) and often a food item. That in itself is a current “mess” from what I see, often, in any given store. Today I was in my regular place and at ~1P, the food case didn’t have a lot to offer. There was ‘enough’ for the moment but every Sunday, in this store, about 30+ people come in after church, almost all at once. That alone would likely empty out the food items available today by probably 3P. (the store is open from 4:30A….when I understand there are almost zero customers… to 11:30P. )
Also, I don’t think the Sbux in the Seattle area can really, it seems, be compared to the rest o the country. It’s always fun to hear and see what’s happening there but clearly they seem to get much different attention than the rest of us. And I can see why, altho I don’t see it as necessarily ‘correct’.
Well, sorry the rant. I just see, as Chgo was saying, prices continuing to rise and the service is definitely not the same, nor even the offerings. I know a couple bar drinks that I used to drink regularly about 4 yrs ago and the price was at least reasonable. The same drink now cost easily $7.00 or $8.00, depending on shots. sz, etc. so I generally only get them as a “reward”, not to mention I need to feel the person on bar can make it like I want it, and that’s also rare….so much inexperience. When I look back, it’s been big increases.
ok. done ;(
@Melody – Since we are in an open thread, have you been able to try the Starbucks Reserve Finca Nuevo Mexico yet? Is it an upcoming thread?
@Chgo. – I haven’t tried the Reserve Mexico coffee yet. It’s already on StarbucksStore.com, so it’s certainly public knowledge already. I usually write about the Reserve coffees after attending an East Olive Way Coffee tasting for it, but I think Olive Way won’t have another coffee seminar until January. Maybe some other store will do one where I can write about it! 🙂
I have a long list of things planned for upcoming threads, but some of them are timed after the big January 7th launch.
Back on the topic of the gilt.com cards – I see pics of the actual cards all over the place, but oddly mine hasn’t arrived yet! I’m starting to worry!
I tried it! I will give an opinion if you do a thread on it. However I would like to try it again first. The flavor kept changing. Keep the faith on receiving your card soon.
@Chgo – Back when Starbucks still had Organic Shade Grown Mexico, it was a coffee that had a lot of different flavors at different temperatures. A great example of how flavor changes as it cools off. I wonder if this new Mexico coffee is the same.
I miss the OSGM Melody! It was one of the 1st coffees I tried and liked on the Clover, and then it was gone. I’m not sure if it was the OGSM, but I vaguely remember we had a discussion about a certain coffee that changed flavor as it cooled either here or at msi. I guess I will just tell you what I thought. I sampled a full short cup. At first it tasted rather flat, but with each sip the flavors opened up. It never quite got the opportunity to cool, but I will say it got better with each sip. Is it the best Reserve I ever had? No! But I did like it, and look forward to enjoying a Venti this week to get a better taste of it. It probably would have been nice to be able to compare it side by side to the OSGM.
There you guys go again, talking about Clover Coffees, while those of us in the boondocks have to roast our coffee over the campfire, grind the beans on a rock, and boil brew in a big enamel pot over the campfire 😉
@Melody – I too hope your stainless card arrives soon. Gilt’s HQ is in New York so it takes awhile for the pony express to get across country. At least the passes seem to be clear.
@denise r – I could write the same “rant”. As a 15+ year regular at our Mall Starbucks I have a comprehension of the customer ebb and flow that no one at that store will ever have. Managers seem too restrained by the requirements of Starbucks HQ. Now with labor thin someone cannot even run to another store to deal with an out of stock situation. This Mall Store is a prime example of how Starbucks has made a wrong call on a store location and size. If this store was larger, had more product, and had an entrance in the Mall it would have sales through the roof.