BusinessWeek recently ran a piece titled How To Reenergize Starbucks, which addresses the return of Howard Schultz to help Starbucks reclaim its original spirit. The story solicited commentary for a stable of design+business folks, whose responses I found disappointing.

The folks at hipster coffeehouse Ritual Roasters dressed up as Starbucks Zombies for Halloween. Flickr link.
(The following is a combination of ideas/concepts from me and Brandon)
Starbucks is a company we think about at Adaptive Path, as it’s success was very much built on its experience design. We use Starbucks to explain the experience strategy tool of the Elevator Pitch:
For people who have 15 minutes to spend on themselves, Starbucks is a familiar social experience that brings comfort, reliability, and enjoyment to the everyday coffee-drinking routine.
Unlike other habits, rituals, and indulgences, Starbucks consistently delivers your day’s best break as a personal experience wherever or whenever you need it.
As such, unlike many in that BusinessWeek article, I don’t think it’s about The Coffee. Starbucks has to deliver a basically good product, but they don’t need to deliver a superlative product. And they definitely don’t need to sell $1 coffee — that sends exactly the wrong message, in that it moves Starbucks to the bottom of the pyramid, and turns them simply into a volume operation.
What they need to do is make the store experience inviting, not so much about pushing product, but about being that Third Place (not home or work) where people can get a respite.

“Welcome To The Third Place”, an image from a Starbucks in Australia. Flickr Link.
Starbucks needs to engage with The Long Wow. The need to assess their touchpoints for delivery — The retail environment (including music, smell, etc.), the staff and service protocol, the beverages/food, the packaging, the wifi, the streetscape (where and how it fits into the neighborhood), etc.
They need to reconsider their customers’ needs (which may have evolved since they first opened). What do you need at a third place other than a drink or a light snack? You might need a private place to chat (think bench in a park), a good place to read/study (think library), or a place for casual conversation (think bar). There’s still plenty of room in which to sell services or product, but it’s clearly not about feeling more like a shopping mall.
Approaches to consider:
+ Allow the stores more control over how they engage with their community. This is the Whole Foods model. Each Whole Foods store has a high degree of autonomy for fitting within their community. Whole Foods has been able to grow, yet still achieve that “transformative” quality for their customers, and I think this is key.

Flickr Link
+ Take advantage of the fact of real estate. Apple Stores’ success hinges on recognizing that in a physical environment, you can have a remarkable set of high-touch interactions, with merchandise and other people, that can really elevate your experience. Apple uses their stores physical-ness for classes, genius bar, lengthy trials of the products, and, to a certain degree, a cool place to hang out. Starbucks could benefit from such a mindset, with things such as book clubs and other affinity groups. Starbucks could reach out to its community and serve as a hub/meeting place for such things.
+ Let employees and service designers play with the service protocol; today, you order a coffee and pick it up a few seconds later. Nothing special or unusual ever happens during the service. Employees don’t have the means to delight or surprise a customer, or just make a customer smile. Their “cheer-chain” was a poorly handled PR stunt, but it illustrates that delightful variations in service make for a good break. It just has to be genuine, which means from the initiative of staff and not from the corporate playbook.
To finish, It would be marvelous to see Starbucks manage and operate based on experiences. They should own:
- the morning stop on the way to work
- the private chat
- the study cram session
- killing time before your meeting/date/etc.
- and keep identifying more while re-inventing the ones that have grown tired
And each store should know which of these experiences they support, and identify which customers are looking for which experience and support them in it.