In the consumer marketplace, Starbucks has become a household name. Marketing gurus have held them up as a fine case study for many years. Seth Godin once commented on their cunning marketing plan. “I’ll meet you at Starbucks” – This was the catch cry of millions of Mums and business people wanting to get together to chill out or to talk. Starbucks was simply marketed as a comfortable meeting place with couches. Serving coffee was just a [highly profitable] spinoff activity.

Today they seem to have lost their way and risk turning into just a another commodity food and drink outlet.   In Europe Mac Cafes are becoming more popular than Starbucks. Who’d have thought that would even happen?  They’ve responded with new drinks like smoothies and more food on offer. But sometimes more means less. It hinders, doesn’t add to sales or generate happier customers – It confuses. (read more). Financial analysts and investors like more. They see more products as more profit.

Today Starbucks runs the risk of alienating much of their customer base since the Starbucks ‘experience’ is being watered down, a problem clearly identified by their new CEO.

The big lesson here for small businesses in the hospitality industry is that dining is as much about the experience as it is about the coffee or food. Below is a good summary from a small business coach Jay Erret in an interview with ……

So, what should restaurants and coffee shops learn from this? Start with three ideas:

• Firstly, look at ways to engage with customers both in-shop, online and via mobile phone. Build a simple loyalty program – We do note that Starbucks are now introducing an improved program based around your mobile phone, not plastic.
• Second, simplify your menu and choices. Take special note of the environment, making it comfortable and encouraging talk. Food and drink naturally has to be of a high standard and having a unique ‘product’ or offering helps a lot. But it’s the experience and service that they’ll remember and come back for.
• Place your restaurant and menu online in a mobile-optimised website. This ties in with the mobile phone loyalty program and helps busy customer see in an instant what’s on offer. Many may like to subscribe to TXT alerts.

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