Warming Up Starbucks

I think returning Starbucks CEO Howard Schultz is doing a good job so far. He’s the one that put the coffee chain on the map and, as with Steve Jobs at Apple, was exactly the right guy to come back and get the business back on track.

One of his best ideas so far has been seeking your ideas for how to improve Starbucks. The company has a website called My Starbucks Idea where you can throw out your ideas, see what other customers think, and even watch as the company puts various ones under review, shows which ones are already in development, and otherwise reveals status.

Some of my favorite suggestions from among the most popular are:

  • Finally, offer free wi-fi access.

  • Offer a free birthday drink.

  • Create a punch card where frequent sippers get every 6th or 11th drink free.

  • Sell a healthy breakfast.

  • Make a swipe card so regular customers can scan or swipe it inside the door, pay directly with the card, and have the order go straight to the barista so the card holder can skip the register line.

This gathering of ideas from customers is a great, free way to see how to make Starbucks exciting again.

We’re long SBUX because I don’t see any reason it won’t recover. Two years ago, the stock was almost $40. Today, it’s under $18. Sure, there are reasons for the decline, chief among them a weak consumer in the midst of recession and higher food costs, but the business is a winner. Look at the revenue history in millions of dollars:

1998 $1,309
1999 $1,680
2000 $2,169
2001 $2,649
2002 $3,289
2003 $4,076
2004 $5,294
2005 $6,369
2006 $7,787
2007 $9,412

You don’t want to miss that kind of revenue growth on sale.

This entry was posted in Uncategorized. Bookmark the permalink. Both comments and trackbacks are currently closed.
  • The Kelly Letter
    A Complete Investment Management System
    The Kelly Letter  every Sunday morning by email.
    Like no other. Many subscribers say this is the best read of their week, astonishing in its ability to distill seven days of noise into one succinct overview of the very few items that might matter. Start your Sundays right!
    A one-page Quick Start Guide
    with page number references to full information in The 3% Signal. You'll receive access to this right away so you can begin transforming your portfolio into a performance machine immediately.
    The 3Sig Calculator.
    A thing of beauty! You'll use it to generate your own personal signals every quarter including exact share amounts to buy and sell based on your account balances. It emails you the results to make later quarters easy by keeping last quarter's numbers at your fingertips. Some subscribers say this tool alone justifies their subscription price.
    The subscriber-only section of this website
    where likeminded investors are commenting on notes and discussing in forums. Jason joins these interactions every day. They're a treasure trove of investing tips and wisdom.
    The archive of Kelly Letter notes.
    It’s a research center, searchable and smartly tagged to make gathering time-stamped material on covered subjects easy.
    The subscriber podcast.
    Jason reads every letter word-for-word. This feature was requested by subscribers who prefer audio learning. They listen on their Monday morning commute, during a workout, or while reading along at their computer.



    $200/year
    Save 17%



    $20/month
    Pay as you go
    Or sign up to receive free email and learn more about the system.
Bestselling Financial Author