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Professor @ Harvard Business School | Bestselling Author | Co-host of Fixable with Anne & Frances | Thinkers50 | Advisor

Starbucks’ stock price dropped sharply after the company reported a slowdown in sales, profits, and store visits.   Everybody seems to be worked up about it, especially former chairman and CEO Howard Schultz.   In our latest Unsolicited Advice segment on Fixable, Anne and I spill the tea (er, coffee) on how the company can turn things around. Harvard Business School | TED Conferences | Pushkin Industries

So good. So true. It must be hard to deliver empathy in the world of mobile order and pay when the modal thing a customer says to the barista upon entering Starbucks is “where’s my coffee?” Starbucks has some stores now that are mobile order only where you’re not allowed to talk to the employees. I’ll submit they’re also in the business of coffee. My chemical dependence still makes me a relatively-frequent user, but I now have a home espresso machine that’s a reasonable substitute for that facet of the value proposition. Coffee alone drives me to the store a few times a week — when I don’t have time to make it at home. When it was coffee and empathy, I went every day.

Mahek Shah MD, MBA

Physician Executive Leader & Private Investor | Strategy Transformation & Innovation | Helping companies leverage AI, Value Based Care for Growth Strategy & Operational Efficiency

1mo

Howard has to bring back the 3rd Place mood. And how they ARE delivering HEALTH CARE INSURANCE for ALL their BARISTAS (even PT) as part of the EMPATHY business they are in. 2nd, I'd go so far to say are in the CONVERSATION business, a unit of the EMPATHY business. How many 1st time meetings, some first dates, some hot summer breaks have been at a Starbucks. I can recall countless times my mother would want coffee in the middle of the afternoon to have 10-15 minutes to sit down with her twins and just be... those moments are priceless. Forever memorable too.

Gitanjali S.

Chief Strategy Officer| Executive Leadership| Growth Adviser| Design Thinking| ESG

1mo

The reason certain coffee shops of Starbucks were my favourite was because it became a favourite hang-out place with my friends. We felt warmth, some vibes making us feel like a place where one could spend even several hours chatting about our lives. The coffee wasnt really a favourite but what felt great was even if we didnt like it the staff was generous and courteous to turn it the way we asked for. In many other outlets like in malls, airport hubs it felt a mental pressure to quickly mention what we 'exactly' need to order and pay quickly and move away from the queue ...there was no smile and it was 'drab and dry' vibe. So we just took the coffee and stepped out of the place and sometimes wondered do we even need this coffee? Was it about coffee or the experience or the company we had?

Sean Rickman

Senior Technology Leader

1mo

Sorry, Starbucks are in the business of coffee - good quality coffee. They use more product in the cup than say, Tim Hortons, for a premium. But ultimately, the company is selling a quality product as a convenience to busy folks on the go. They also offered a place to meet and sit and work over free WiFi. And they did/do all of these things well. The problem is that in times of austerity people look at these discretionary prices and make a value proposition: "is this something I absolutely must have and derive value from or something I just want?" A Starbucks that began to base its business model on the up-sell (novelty beverages, extra pumps of this/that, sandwiches, pastries etc.) is going to feel buyer-retrenchment pain faster than say, a Tim Hortons. If empathy is what Starbucks thinks they need to stress, they're in for a lot of economic pain ahead.

Kevin DeSoto

Manager, Advisory - aIQ /GenAI Transformation Delivery at KPMG US

1mo

I love this. I use to work for Starbucks. Back then it was ALL about the team. ALL about the customer. ALL about connection. ALL about the human personalized touch. As a barista we anticipated our regular customers and started making their drinks when we saw them walk in the door. We greeted them by name. We made each person feel welcomed, remembered, valued. And they kept coming back. It truly was their third place: 1. Home 2. Work 3. Starbucks That does not exist. It’s gone. And I’ve seen the shift. Starbucks has an opportunity to bring back the human connection between the barista and the customer. Like I say… Happy employee. Happy customer. Happy profit. Let’s get back to empathy, connection, belonging and experience people again. This simple, basic recipe applies to every company in the world. Bring back people over profits. Because when your people are taken care of it will show in your profits. Read that again. I hope the culture leadership team at Starbucks are reading these open, honest and priceless posts. You can do it guys!! ☕️ ❤️ ☕️❤️☕️

Eryn Dewald

Senior Advisor @ Alberta Health Services | Certified Coach, Leadership Development

1mo

I’m a dedicated Starbucks customer, often visiting with my dogs for coffee and pup cups. The staff there always brightens my day with their smiles and chats. Years ago, a less cheerful staff member made me visit less, but since her departure, the positive atmosphere is back. It's clear that great store leadership shines through the staff's attitude. It's not about the coffee...it's about the experience. Yes, I so agree, Starbucks can boost profits by investing in people and their stories.

Anthony D.

I utilize 𝗔𝗡𝗔𝗟𝗬𝗧𝗜𝗖𝗦, 𝗖𝗢𝗟𝗟𝗔𝗕𝗢𝗥𝗔𝗧𝗜𝗢𝗡,& 𝗦𝗧𝗢𝗥𝗬𝗧𝗘𝗟𝗟𝗜𝗡𝗚 to build commitment & momentum. I build Leaders who build Leaders. I create AGILE HR & Talent teams Speaks on “Discernment“

1mo

Like the engine is the Honda as a core competency. What is the core competency of Starbucks that they should be leveraging?

Tara Schweizer

Clinical Trial Data & Technology | Trial Delivery | Clinical Operations | Data Management | eCOA | eSource | SaaS Implementations | Site Solutions

1mo

Can empathy scale?

Jade Duggan, M.Ac. (She/her)

Leadership is public health. Get better at it. Effective leadership presence for change.

1mo

I haven’t listened to the whole podcast (and will!), but I’m with Anne Morriss here, though I wonder if @Howard Schultz is making a difficult internal bet about having to address global issues directly to fulfill the delivery of empathy- and doesn’t *want* to be in the (possibly more difficult than coffee) business of diplomacy or values. Personally I think there’s a “3rd space” option here too but it takes a really strong leader to hold that conversation without coming across as either activist or avoidant- and he’s bumped into the line repeatedly over the years and may be making what he thinks is a necessary choice?

Bettina van Bevern

IT Personal Training · Mensch im Business · „Kneistermeisterin“ und Unternehmerin

1mo

Yes, lady's ... that's what we - all of us - need ... empathy 😘 👏👏👏 ... Starbucks ... phew ... completely overrated ... And they've lost the "thread". 🙏 Frances Frei + Anne 👋 …….. When was the last time you saw "Funny Face"? This film with Fred Astaire and Audrey Hepburn ... 1957 ... You know ... "Empathicalism" ... 😅

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