Starbucks nation

This caught my eye in USA Today on the way back from recent travels (hence the lack of posts recently).  It's a great article  on the rise of Starbucks and the extension of the brand from lattes to becoming a prominent player in pop culture and entertainment - think Hear Music on XM or the recent release of Akeelah and The Bee which Starbucks struck an equity deal with in return for marketing (admittedly not very successfully. Books and digital downloads are apparently next.  While this is all interesting stuff that shows how a strong brand idea can extend your product offering, I thought one of the most interesting pieces was a recap of how Starbucks has already touched culture and left a lasting mark.  Love them or loathe them, Starbucks is probably the brand that has had the biggest impact on society in recent years.  Here's a lift from the article that recaps some of this:

•Changing what we'll pay for coffee. In its less costly markets, a "tall" (small, 12 oz.) cup of regular coffee still costs about $1.40. In its priciest market, New York City, a "venti" (large, 20 oz.) Frappuccino will set you back $4.90.

"We live in a society where people think $5 is $1 because of Starbucks," says Marian Salzman, trends guru at JWT Worldwide.

Washington, D.C., lawyer Lisa Terry, who goes four times a week, gives Starbucks a nickname based on her average tab: FourBucks.

Starbucks not only made four bucks a cup acceptable, it opened the door for others. "I got into the business because of what they created," says Michael Coles, CEO of 500-store Caribou Coffee.

Not everyone has bought in. Some 1,829 consumers were asked by Marketing Evaluations, The Q Scores Co., last year to rate 170 major brands for "value." On a scale of 1 to 100, the average score was 26. Starbucks came in at just 10. "The consumer is saying, 'Man, look what I'm paying for this!' " says Steven Levitt, president of the firm.

•Changing coffee tastes. Like it or not, Starbucks has changed expectations of how coffee should taste. "They've done a great job of raising coffee standards," says Bryant Simon, author of the upcoming book Consuming Starbucks.

Starbucks coffee buyers, tasters and its quality control team taste an average 1,000 cups per day. It's forced McDonald's and Burger King to upgrade their brews.

•Changing what we eat. "It's hard to eat healthy at Starbucks," says Marion Nestle, author of What to Eat. "Portions are too big, and the drinks are full of calories."

It's about to get easier. This year, Starbucks has started a menu revamp with more better-for-you foods. Fruit and yogurt parfaits and warm breakfast sandwiches have rolled out in many markets. New salads are under review. Even Starbucks trail mix is on tap. Healthier food "is part of every conversation we have," says CEO Jim Donald. But coffee is the focus, he adds.

•Changing how we order. Starbucks made custom ordering chic, says Brad Blum, former CEO of Burger King, now a restaurant industry consultant. "People take a sense of ownership when their order is personalized," he says.

•Changing how people meet. "There's a sense of security when you go there," psychologist Joyce Brothers says. It has given people a "safe" place to socialize, she says.

Terry, the D.C. attorney, says Starbucks is the only place she feels comfortable meeting guys on first dates. "It's cornered the market on meeting places," she says.

•Changing cities. Starbucks is influencing urban streetscapes. In brochures for high-end apartments near New York City, it's not uncommon to see "near Starbucks" as a selling point. A Starbucks in the neighborhood is "definitely an indication that an area has arrived," says Doug Yearley, a regional president with builder Toll Brothers, now putting up luxury condos near a Starbucks in Hoboken, N.J.

•Changing social consciousness. Starbucks has added more than a teaspoon of social responsibility to its premium coffee.

No other retailer in North America sells more Fair Trade coffee — marketed by co-ops that guarantee living wages to coffee growers. It has 87 urban locations co-owned by Earvin "Magic" Johnson. It's begun rolling out paper cups made with 10% recycled materials.

Many of its part-time "baristas" are eligible for health and 401(k) benefits, something that Schultz is proud of and that has had an impact on the industry. But some employees push for more. A union recently formed in Manhattan to seek more pay and "to make Starbucks more socially responsible to workers," barista Daniel Gross says.

Despite recent moves to become a cultural curator, Schultz says Starbucks still has to earn its stripes as tastemaker. Much as it would like to become an "editor" of culture, he says, "one of the great strengths of Starbucks is our humility."

(credit:  USA Today)

Comments

[Charles]

Has anyone else ever felt that the TV series 'Friends' had something to do with people hanging out at Coffee Shops?

[Jonny Ringo]

Charles - great point! I think the Friends show definitely had something to do with it!