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They Smelled the Coffee at the NYTimes

Our friend, colleague, commenter, and blog post-er, Mike Neiss, is quoted in today's New York Times in Joe Nocera's column titled, "A Double Shot of Nostalgia for Starbucks." Mr. Nocera quotes from Mike's post titled, "Wake Up and Smell the Coffee." The Times article explores the two sides of Howard Schultz: the man nostalgic for the Starbucks past, and the man who only cares about opening more retail outlets than any other store in history. For me, though, the most damning fact for the ubiquitous coffee chain is a "survey of 20,000 people by phone and in person that showed that Dunkin' Donuts now had higher customer loyalty than Starbucks." Yikes.

Erik Hansen posted this on 03/03/07.

Comments

Donuts versus coffe...surely some brand synergy about one needing the other, even as a neighbor?

Hi from Dubai Tom - when are you headed back this way? Em and I just had to post this as we take a coffee break during our career break as we write up our self-help book, GO! Smell the flowers. http://www.gosmelltheflowers.com

Posted by GO! Smell the flowers at March 3, 2007 12:09 PM


It wouldn't surprise me to learn that loyalty to DDs is more lasting that that of Starbucks. Although a lot of customers enjoy the atmosphere of Starbucks, I strongly suspect that there are many who can see through it for what it is - a facade that really isn't all that genuine. The atmosphere they wish to present loses it's flavor when it becomes ubiquitous. Whereas DDs is just what it is - a non-pretentious place to simply get good coffee at a more affordable price. No mystery there.

Posted by Tim at March 3, 2007 3:38 PM


1. Low-class - low-IQ types @ NYTimes eager to denigrate a super successful international free enterprise star like Starbucks - such a surprise - what next - NYTimes scathing attack on coalition troops & Christians?! ... Times as fishwrap @ best.

Posted by sean_seattle at March 3, 2007 4:53 PM


Well, I am one of those that love Dunkin Donuts' coffee. It is usually one of my first stops when I am in "Dunkin Country." Their coffee is hot, flavorful without the bitter after taste!

Posted by Val Willis at March 3, 2007 9:04 PM


Sean - great observations but I must disagree about NY Times - we have 'Daily Mail' in UK. That puts NY Times in SECOND PLACE for fish (and chips) wrap :-) - Take care

Posted by Trevor Gay at March 4, 2007 4:10 AM


This Washington Post story fairly frames the challenge for Starbucks. One part growing fast vs. quality, one part standardization vs. uniqueness, one part factory at the counter vs. personality, and few others thrown in.

http://www.washingtonpost.com/wp-dyn/content/article/2007/03/03/AR2007030301100.html

Is Malaise Brewing at Starbucks?
Chairman Laments That Chain Has Lost 'Romance and Theatre'

By Blaine Harden
Washington Post Staff Writer
Sunday, March 4, 2007; Page A09

SEATTLE -- Starbucks has lost its soul and does not know where to find it......

Posted by Jeff at March 4, 2007 10:46 AM


Constant pressure to grow comes with being a public company. It's the reason why some very successful players like Koch in the US and Semco in Brazil stay private.

In theory, the Starbuck's experience is supposed to be something like the European cafe. In the ones I've visited, the experience was qualitatively different from any Starbuck's I've ever visited in the US. The the Euro cafe worked at a different pace, the cups weren't make of paper and capped with plastic lids so you could walk or drive and drink your coffee.

I don't go to Starbucks because the experience I get is more wired and frantic than those Euro cafes and the coffee isn't all that good.

Posted by Wally Bock at March 4, 2007 11:12 AM


I don't have a brilliant post.
But, I keep asking..
Isn't it Starbucks about the coffee?
Dunkin" Donuts about the donuts?
McDonald's about burgers (and fries)?
Toyota about cars (I have one) that start up and run..for a long time?
Apple about "toys" that work with computers and both are easy to use?
I'm sorry. I've oversimplifed....

Posted by NGR at March 4, 2007 6:31 PM


Starbucks starting losing its way when it introduced Lite Notes coffees. They were inconsistent with the Starbucks expectation from day one. I was told by a barista there that the light coffees constituted less than 10% of retail volume after a full year of availability. That tells the story.

Light tasting coffees from Starbucks were a pitiful example of trying to appeal to everyone. No brand can do that.

I have also been told that they are finally pulling them. A number of years too late for the Brand reputation.

Posted by Frank Lane at March 4, 2007 8:33 PM


Dunkin' Donuts more loyalty than Starbucks? Hard to believe. Every DD I've ever been in has been grubby, cheap, and often part of a gas station. My taste buds think their coffee sucks. Every Starbucks I've patronized has been clean, bright, fairly efficient, and serves (in my opinion) great coffee. What's wrong with Howard's email to the "troops?" NOTHING! It shows he is paying attention. Good for him. Starbucks will grow stronger because of this.

Posted by Mike at March 5, 2007 7:25 AM


First of all, kudos to Mr. Neiss for jumping from blog to page. It's always nice to be noticed!

Being from New England, I can see the reason for brand loyalty to DD. Despite some people's experiences of only encountering a DD at a gas station, up here they are on just about every corner, and for the most part are reasonably well kept. Their coffee is consistent, and for the most part, the help can be too. Also, DD plays to the hard-working, no frills attitude of many New Englanders (if we're rugged enough to withstand our winters, then we don't need $4 coffee creations). Finally, it is interesting to note Dunkin's forays into StarBucks' territory with their simplified lattes and such.

Posted by Nick Adams at March 5, 2007 8:33 AM


Both Starbucks and Dunkin' Donuts had better watch their backsides because the ever-expanding empire of Tim Horton's is breathing down both their necks. Southerners don't know about Tim Horton's yet, but they will soon, I'm sure. This Canadian-based coffee, soup, sandwich, and bakery juggernaut has been expanding at a pace to equal Starbucks recently. Good quality food, coffee, tea, and a nice clean place. Coffee brewed by the pot and kept 20 minutes only, never longer. I think I just talked myself into a visit. See ya!

Posted by Mike at March 5, 2007 10:20 AM


The Starbucks experience? I can buy Starbucks coffee from pump Thermoses in any hospital cafeteria in town, or pick up some beans from the drugstore on the way home.

Or drop by the local Tim Horton's where there are several types of soup on the menu, more than a dozen types of doughnuts and cakes, sandwiches made fresh for the customer, and yes- a decent cup of coffee.

Posted by Lois Gory at March 6, 2007 11:08 AM


What "makes" a Starbucks experience is not the "commoditization" of the brand, or whether they use an automatic vs. a manual espresso machine, so much as the people who work there. My brother-in-law is ferociously loyal to his local Starbucks (to the point that -- having given up coffee because it aggravated his gout -- he goes there for tea), mostly because the employees are friendly, cheerful, and know him by name. That's the "Don't forget why you're here" that Howard Schultz should be pushing.

Posted by Paula at March 6, 2007 3:08 PM



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