Starbucks

As for many other consumer products, there is a reluctance on the part of consumers in the US to spend $6 on a latte. We know the prices of consumer goods are rising and there is a backlash from the consumers– the decline in the sales of detergents, nappies and luxury cosmetics.

Starbucks is seeking to turn around its fortunes after alienating customers with price increases. Even the stores are not posh. And there are lengthy queues. A revival is difficult in inhospitable trading environment.

Perhaps, the Chinese operations could be wound up. And the organisation should remember ‘retail is in detail.’

The staff uniforms have been changed. It is just incremental change. The baristas write notes on the coffee cups. It is not an effective move. There is a long waiting period –the sequencing should be improved. The little things should lead to a better consumer experience.

Americans buy Pepsi as if the country is in recession — they buy expensive large packs at the start of the month and smaller lower-priced packs as the funds deplete towards the end of the month. Thus, consumers are reining in spending.

Starbucks would not like to use technology to make stores more efficient. There will be more baristas in the stores to speed up coffee making. Ther should not be a backlog of online orders.

Cafes should be more inviting. This should be done in a cost-effective way. A late afternoon menu should serve sparkling drinks.

The prices should be maintained. Starbucks is a ‘simple everyday luxury.’

The crux of the problem is that buyers are becoming thriftier. Discerning consumers prefer a quickly made beverage in a tidy environment, with a pleasant word from a barista.