Commoditization of Starbucks?

As reported in the Wall Street Journal article on February 24, Starbucks' Chairman Howard Schultz sent a recent 800 word memo to executives at the company entitled "The Commoditization of the Starbucks Experience."

Howard, you are being too hard on yourself and the company. Starbucks is creating a world-recognized brand in a segment that has seen little innovation. Though your shops may have lost some of their atmosphere, consumers still depend on Starbucks for the perfect cup of coffee everytime.

While travelling, I seek out Starbucks and on my Lexus' GPS system, it is the only coffee company that I think may have stores in every city I visit. Try searching for a Tullys in Florida! Starbucks should continue to focus on product innovation and expansion, not necessarily on bringing the stores back to an earlier time when local grinding spreads the aroma in the stores.

Store designs, too, aren't bad. Though some people in the Seattle area are rebuking the Starbucks experience, in most other locations it continues to be the best brand around. The "romance and theatre" you so passionately write about is all good and well but we need Starbucks and we want to explore new products. Look to innovate but don't be so hard on yourself...it isn't all or nothing.