Los Angeles Times: Starbucks’ ‘venti’ problem
This entry was posted on Sunday, March 4th, 2007 at 10:28 PM and filed under Articles, Economics. Follow comments here with the RSS 2.0 feed. Skip to the end and leave a response. Trackbacks are closed.
One Response to “Los Angeles Times: Starbucks’ ‘venti’ problem”
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There is an advertisement for some service or product in which the concept is that when you are good at something, don’t try to be good at things outside your purview. (One of those ads shows a roadside stand that says “Ice Cream Sundaes and Legal Advice.”)
Although Starbucks may have started down the wrong road even beforehand, the minute they got into the music and book markets, they were outside their area of expertise, and it was only a matter of time before they suffered for it. Because while they add to their revenue with these extraneous things, the PERCEPTION of them has gone way down – and this can have a NEGATIVE effect on revenues.
I, too, used to love sitting in Starbucks with my coffee and newspaper or magazine. Now, I go in for my short coffee, and leave immediately, because the entire atmosphere makes me shudder.
Peace.
Posted on 05-Mar-07 at 10:45 am | Permalink