WP: 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.
Starbucks Chairman Howard Schultz lamented as much in a recent internal memo to his executives. He wrote that as the world's largest specialty coffee company has expanded from fewer than 1,000 locations to about 13,000, its stores no longer even smell like coffee because of "flavor locked packaging."
His memo grieved, too, over the loss of "the romance and theatre" of traditional Italian espresso makers, which have been replaced by automatic machines. Shultz wrote that the new machines, while more efficient, block customers from watching as coffee drinks are made and sharing what he called an "intimate experience with the barista."
"One of the results has been stores that no longer have the soul of the past," he wrote. "Some people even call our stores sterile, cookie cutter, no longer reflecting the passion our partners feel about our coffee."
The leak of Schultz's lost-our-soul memo has generated buzz on business pages. But it has occasioned only a shrug from the caffeine cognoscenti in Seattle, which has more coffee shops per capita than any other major U.S. city....
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Starbucks was founded in Seattle, which remains home to its corporate headquarters, as well as to Schultz, whose wealth is estimated by Forbes at $1.1 billion....
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