Starbucks Gossip

Weekend OPEN THREAD: Let's get the chatter going!

Things are looking up in Starbucks-land, according to the just released quarterly earnings report. Talk about that, or anything else Starbucks-related. A reminder to Starbucks customers: here's your chance to get your coffee questions answered. There are a lot of knowledgeable baristas hanging out here. || Jump to the second page of comments.

Read what Howard Schultz and other Starbucks execs told analysts during Thursday's earnings call

Some highlights:
* "By the end of the year, our customer satisfaction scores were up a full 10 percentage points from where we began in January." (Howard Schultz)
* "We'll continue to make progress toward evolving our food business, as we expand health and wellness options for our customers in the months ahead." (Schultz)
* "Results from the two US test markets and .. the September rollout support our belief that VIA will have no impact on brewed sales volumes within our stores. In fact, while we expected some cannibalization of our packaged coffee business within the stores, the actual cannibalization rate has been very modest to date." (Troy Alstead)
* "We've gained important insights on custom brewing from our new mercantile store, the 15th Avenue Coffee and Tea store, and we will be applying some of those as we move forward." (Schultz)
> Read the earnings call transcript

Starbucks' quarterly profit beats analysts' forecasts

Starbucks earned $150 million, or 20 cents per share, during the quarter that ended in late September. Excluding one-time items, it earned 24 cents per share. (Analysts expected 21 cents.) Net revenue declined 3.7% to $2.42 billion, as overall same-store sales fell 1%. Read "Starbucks earning surge amid cost reductions" || Read Starbucks' press release

Are your customers talking about the rewards program changes?

The mainstream press is starting to report that Gold Card users will lose their 10% discount. Are your customers aware of this -- and talking about it? || Read "Starbucks Gold Card members to lose their 10% discount"

Our "Comfy Chair" columnist Juan is taking the week off

He -- like other Starbucks-watchers -- will be waiting for Starbucks' quarterly earnings report, which comes out on Thursday at 4 p.m. ET.

Is this another bogus Starbucks and the troops tale? Or is there something to it?

Lauretta writes to STARBUCKS GOSSIP: "I found out today that stores (at least in my area) have been told to pull Via troops donations baskets from the floor. We are apparently pulling the program due to "negative media coverage." But I can't find any news coverage that could be considered negative, and no comments from partners on your site yet. Can anyone enlighten me?"

I haven't seen any stories about this. What do you know? BS? Legit?

Coffee maker Illy uses backdoor to take on Starbucks in the U.S.

For more than 20 years, Trieste, Italy-based Illy has sold its coffee in high-end grocers such as Whole Foods and in coffee shops in the U.S. Now it's expanding its reach by signing contracts with cafes in the U.S. that agree to serve Illy exclusively and allow Illy a hand in quality control. I drank Illy coffee in Amsterdam, and liked it. It's more Peets-like, than Starbucks-like. || Illy to take on Starbucks in the U.S.

OPEN THREAD conversation-starter: Your thoughts on the new Starbucks Card benefits

I only know what readers are telling me. [UPDATE: DETAILS HERE.] Here's one e-mail that came in.

Tiered benefits linked to the sbux card. 3 levels. You move up tiers by using your card and collecting "stars". Each level gets all the benefits of the previous level. Entry: 0 stars free birthday drink
Green level: 5 stars all current reward card benefits
Gold level: 30 stars all current reward card benefits plus a free drink for every fifteen stars you collect and a personalized gold cards. No more 10%.
Current Gold Card holders start gold. Current Reward cardholders start green. [Starts] December 26th.

Is this correct information? Discuss this or anything else Starbucks-related in the OPEN THREAD. || UPDATE: Starbucks has put out a press release about the rewards changes || Jump to the fourth page of comments.

Three teens sentenced to up to 25 years in prison for killing Starbucks barista

In sentencing the three teens for killing Philadelphia Starbucks employee Sean Patrick Conroy, the judge said he hadn't seen them express any signs of remorse. "I believe they're sorry for where they are," he said, "but I have no sense they feel anything like true remorse for what they did." || Read "Three teens sentence in death of Starbucks manager"

"From the Comfy Chair": Juan visits the University Village Starbucks -- and doesn't hear a thing about VIA!

University Village

4634 26th Avenue NE

Seattle, WA 98105

BY "JUAN VALDEZ"

By request, this week's visit is at the University Village Starbucks. This is the one that is actually in the Village and I believe is the remodeled version. For the uninformed, the University Village store sits in a fairly large assemblage of shops on the edge of the University of Washington campus hence the name “University Village”.

So let me just start out by saying I like it. Not that it doesn't have a couple of areas for improvement but, overall, I left with a good feeling. If I were a University of Washington student with an endlessly reloadable Starbucks card, this is where I would hang out. And, judging from the lobby full of UW students, they agree.

This is a large store with about 25 tables (two of which are 10 seat communal tables) and a couple of comfy chairs and a couple of comfy couches. There's nothing particularly exciting about the space itself (a simply large rectangle) however the designers did a nice job of arranging the various stations so as not to impede the general flow of traffic.

In particular, the clover machine sits over in its own section past the hand off pane rather than be attached to the serving line. The retail section sits on the opposite end of the serving line; easily accessible but not in the way./CONTINUED IN THE FIRST COMMENT

Do you care that Starbucks settled with an ex-employee who jumped to Dunkin'? Or that Starbucks endorses Referendum 71?

Those are the two SBUX-related items that are in the news this week. I suspect it's the latter story that will have conservative Christians screaming boycott again. Referendum 71 would uphold state of Washington law that extends marriage-like benefits to gay, lesbian and some senior couples.
* Starbucks reaches $500,000 deal with former executive
* Starbucks adds name to list of employers supporting R71

Let's get another weekend OPEN THREAD started!

Discuss the Halloween plans for your store -- or bring up anything else Starbucks related in the open thread. Customer questions for Starbucks employees are welcome, too. (Reminder: Keep the conversation civil.) || Jump to the fourth page of comments.

"From the Comfy": What stores should Juan review before he rides off?

Starbucks 1720 Commercial Avenue

Anacortes, WA 98221

BY "JUAN VALDEZ"

After working for SBUX and then doing this column, I honestly thought there was pretty much nothing I hadn't seen before.

Well, after my visit to the cafe store in Anacortes, Washington, I have to admit I was wrong...I hadn't seen it all.

Anacortes is way up in the northwest corner of Washington state, on the tip of Fidalgo Island. It's a sleepy little fishing town that's grown primarily by annexing pockets of commercial real estate (primarily Sharpe's Corner) that are completely disconnected from the town proper.

So let's figure out what it was I saw that was so unusual.

Normal looking exterior – check

Really crowded back bar (it's one of those unbelievably cramped stores where the back counter and cabinets literally are in your face) – check. I've not reviewed one of these kinds of stores but Ive worked in them. I don't know the general consensus on Starbucks Gossip but I always found them to be yucky to work in simply because there was no room to maneuver./ CONTINUED IN THE FIRST COMMENT

Judge says Starbucks' tips policy violates Minnesota law

A federal judge in Minnesota says that "Starbucks' policy violates Minnesota law by requiring employees who work on a particular shift to share tips received on that shift with employees who do not work on that shift," On Sept. 30, he denied class-action status for a lawsuit filed by two former Starbucks baristas, saying that the interests of the class would be divided, because some baristas come out ahead with the current policy. Read "Starbucks' tip policy violates Minnesota law"

Backpacker: I'll feel like I've reached heaven when I hear that Starbucks is selling VIA by the jar

When that happens, "I can measure my own amount of water, spoon in the amount I want and then savor the moment," writes Ray Ford. How about making his dream come true, Starbucks? Read "Starbucks leaves a bad taste in a very needy guy"

Ask questions. Make comments. Let's get the weekend OPEN THREAD going!

Join the OPEN THREAD free-fall-all, where anything Starbucks-related is up for discussion. || Jump to the fourth page of comments.

Starbucks customer wants to know why he can't get a slice of lemon with his iced tea

Anyone have an answer for him? The guy writes of his lemon problem: "Seems to me this is a serious mission disconnect for a company with the rather modest goal of giving people drinks they like." Read "Where Starbucks Fails"

Teens say their favorite place to frequent is Starbucks

The teenaged survey respondents were asked to write in responses on blank lines, rather than choose them from a list. Following Starbucks on the school-based survey were Chipotle, Chili’s, Olive Garden and McDonald’s. Following Starbucks in the online survey were Olive Garden, McDonald’s and Red Lobster, with Applebee’s and Chili’s tying for fifth place. || Read "Teens seek value, preferably at Starbucks"

"From the Comfy Chair": It took nine minutes for Juan's drink to arrive, but...

Starbucks

12209 NE 85th St.

Kirkland, WA

BY JUAN VALDEZ

And now we take you into a McDonald's...no, wait, a Burger King; well it used to be either a McDonald's or a Burger King in another life. Now the building sits on a very busy street in Kirkland, Washington as a remodeled Starbucks and it's probably one of the largest ones I've seen yet although the former Cafe Starbucks store down in Madison Park likely gives it a run for its money, sizewise.

Not only is the street busy but the store is too. There was a line nearly the whole time I was there from the late morning into the early afternoon. A store that is as big as this one is pretty much a nightmare to keep clean but, amazingly enough, this one was pretty darn clean. I never saw the condiment bar get filthy nor the tables left filled with litter. The floors were free of debris. The cold and pastry cases were clean and stocked nicely.

In fact, the only thing stopping the store from getting an A on my little scorecard was the fact it took nine minutes to get my drink. There were just four partners on the floor in this drive thru cafe and, frankly, I considered the store to be understaffed even though they handled things quite well.  This store is definitely a high volume store and it seems unconscionable to have only four partners working especially since it's a drive thru./CONTINUED IN THE FIRST COMMENT

Starbucks takes Clover brewing systems out of seven Boston stores

Has Starbucks lost interest in Clover now that it's taken it away from the independent coffee shops? Here's what the company says: "Starbucks remains committed to the Clover Brewed Program, and we look forward to expanding the program to more than 250 Starbucks stores in 2010." We'll see -- and bet that it'll never happen. Read "Starbucks tweaks test of Clover brewing system"