So, by fall 2008, Starbucks won’t serve sandwiches anymore.
Wow. Now a coffee shop is just a coffee shop. No more wonky stacks
of bread, meat, eggs and cheese to microwave. No more hard knobs of
croissant to tear and chew like a hyena clenching and pulling at wild
boar entrails.
After the company released its financial results for the first
fiscal quarter, Howard Schultz, chairman and chief executive told The
Associated Press: "The decision and the courage it takes to remove
something when there's pressure on the business — like the sandwiches —
is emblematic that we're going to build for the long-term and get back
to the roots and the core of our heritage, which is the leading roaster
of specialty coffee in the world.
Here’s something kind of cool: Starbucks is going to slow growth in
the United States by opening up fewer stores. Schultz said the slowdown
in U.S. growth will allow the company to make better use of its
resources.
Slow growth? Isn’t that supposed to make stockholders twitch? Aren’t
they just as impatient as Starbucks coffee drinkers who tap the counter
while a barista foams their skim latte?
I think it’s great that Starbucks sees slow growth and a more
specified business strategy − coffee, not sandwiches − as the smart way
toward future success.
New stuff is coming, too. The company has been testing $1
extra-small cups of drip coffee with free refills in some Seattle
stores, which it is doing to respond to the economic pressures many of
its customers are facing. Some analysts say it could draw in new
customers and drive up sales if they decide to upgrade to a more
expensive drink.
Does all this mean that McDonald’s will call off its gourmet coffee shtick?
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