How Starbucks Got Disconnected

With every cup, with every conversation, with every community– we nurture the limitless possibilities of human connection.

Starbucks could not be more plain with its mission. When Howard Schulz first founded the company, he modeled it after the great cafes of Europe, where people gathered and interacted with other members of the community. He founded the company with the idea of bringing this to the United States. The idea of the Third Place – not home, not work, but another location where people came together – was so sorely lacking in the US at the time. Sure, the coffee culture hadn’t emerged yet either, and getting a decent cup of coffee (although coffee purists generally turn their noses up at Starbucks) was a lot more difficult back then. Coffee was just part of the experience. At its core, the company was there to foster human connection – and it was part of every interaction with the brand. So much so, that we’ve praised Starbucks in the past for being so clearly focused on its Fundamental Human Value of connection. 

I remember what an earth-shattering idea it was when Starbucks offered free Wifi. You could plunk yourself down and do your work without going into the office – something that seemed all but unthinkable until then. When you needed some time to think, to write, to really concentrate without the entire office knocking on your door every 5 minutes, it was liberating to go to Starbucks for an hour and escape. To be around like-minded people who were also thinking, dreaming and working. It was home away from home when you traveled. They called out your name when your drink was ready. You had a special language – in the know people had their special three pump half caff macchiato or whatever else you said when you customized your order. Starbucks welcomed you into a global community. And their business exploded for decades.

But as noted in a recent HBR article, Starbucks’ performance has been suffering. Their stock tumbled after results showed a 4% drop in same-store sales. The article points the finger very clearly to the company’s drift away from its purpose. It’s something we’ve noticed as well. 

When brands start to do things that are in direct opposition to their Fundamental Human Value, it’s a massive red flag.

(As a quick reminder, a Fundamental Human Value is the emotional need that a customer has that a business satisfies.) In my own neighborhood, Starbucks swapped a comfy cafe location for a drive thru. It’s all about churning people through. There’s almost no space for seating – except a few metal chairs in a tiny outdoor patio that sits on a busy stretch of Ventura Boulevard. Hearing other people or even listening to something on your laptop or phone is next to impossible. Employees stand outside wearing headsets like at In n Out or Chick Fil-A, taking your order as you roll down your window from your hermetically sealed vehicle. There’s no chance to strike up a conversation with someone in line. Or to peruse the pastries and food options. And lest I sound like the Boomer I am, I have also succumbed to using the app to order ahead, to minimize the time spent at Starbucks. Just another way that the in-person experience has shrunk in importance. When you visit a Starbucks, it no longer feels like The Third Place – you feel like you’re IN third place. You’re de-prioritized – behind the drive-thru and mobile orders – an afterthought at best or a nuisance at worst. 

The HBR article points out that even the small human touches that used to be part of the experience are gone. The name that used to be hand-written on your cup has now been replaced by a printed sticker. 

To be fair, many retailers have struggled as technology and the pandemic have altered the habits and preferences of a new generation of shoppers. But Starbucks’ choices have consistently put them at odds with the idea of connection. Scale and efficiency shouldn’t win every battle. When brands become completely unmoored from their Fundamental Human Value and their purpose, results will inevitably suffer. 

HBR suggest a few remedies that Starbucks can pursue to reconnect with their brand’s core of connection, and it offers a start on the road back to success. Sometimes, however, brands need to revisit their FHV altogether. It may be that Starbucks is so far gone that it no longer can provide connection at scale. That’s OK too. We’ve seen Patagonia move from a brand whose purpose is to enable Exploration to one whose purpose is to save the planet. And it’s working. 

It’s not the purpose itself that’s the problem. It’s when the purpose isn’t aligned with the product and experience that problems occur. That results in cynicism and alienation among your customers – something that’s often worse than the company having no purpose at all. 

It’s not the purpose itself that’s the problem. It’s when the purpose isn’t aligned with the product and experience that problems occur. That results in cynicism and alienation among your customers - something that’s often worse than having no purpose at all. 

Bring inspiration and innovation to every athlete* in the world.

*If you have a body, you are an athlete.

 

Bring inspiration and innovation to every athlete* in the world.

*If you have a body, you are an athlete.

 

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