"Good Morning, I need a cup of coffee" by Jeffery Gitomer

the business of coffee houses

"Good Morning, I need a cup of coffee" by Jeffery Gitomer

Postby jpscoffee on Wed Dec 16, 2009 5:20 am

I don't know how many of you read Jeffery Gitomer, but someone passed this on to me, and I to you. Remember this is written from a customer's point of view, as a matter of fact, from many customer's point of view. You and I will have different opinions on a some of the "facts" as presented, but I still think it is a good read and something to learn from.

Good morning, I NEED a cup of coffee, by Jeffery Gitomer

When I say “Starbucks,” what one word comes to mind?

Every day millions of people wake up, go through their daily morning routine, and with coffee on their mind, head out to their Starbucks oasis.

Ever go to Starbucks? Sure you have. Some of you hundreds of times. Some of you thousands of times. You have your order in mind before you ever get there. You stand on line, patiently waiting your turn to exchange your money for your reward - your cup of coffee exactly the way you want it. And maybe some other up-sold item. A muffin. A scone. A piece of pound cake. A cup of oatmeal. A breakfast sandwich.

The proliferation of Starbucks is nothing short of phenomenal. But you can read about that elsewhere. My focus is on why you go there, and continue going there.

What makes Starbucks a sought-after destination for you to spend more money on a cup of coffee than you’ve spent anywhere else in the world? And for millions of customers, why you’re willing to do that every day. In any weather. In any economy.

Yes, you’re looking for a morning jolt. But why Starbucks?

Here are a few of the reasons people (including me) go there:
Atmosphere. Looks like a living room or a break room. Relaxed.
Warmth. I feel like the whole place is a cup of hot coffee.
People friendly. Smile is their order of the day.
The ability to customize your order. Size. Content. And the widest variety of product (eliminating the “We don’t carry that” option from their response).
Speed of delivery. They have a system. Somebody takes your order. Somebody else makes your order. And maybe even a third person gets your muffin. You don’t have to wait long for gratification.
Consistent quality of product. Whatever you were thinking or hoping for when you walked in the door is exactly what you receive a few short minutes later. You get what you came for. No matter where I am in the world, my cup of coffee is consistently superior.
It’s easy to buy and pay. Starbucks has their own prepaid card. They’re so popular that people give them as gifts. I’ve often wondered how many hundreds of millions of dollars go unused, laying around somewhere in Starbucks coffers. But the bottom line is a high percentage of people pay with those cards, and millions of people gift those cards. It’s likely that you have purchased and used, been the recipient of, or given the gift of a Starbucks card. Their latest way to purchase is the mini Starbucks card that you can put on your key chain. (You can no longer leave your car running if you have the card on your keychain.)
Technology friendly. I can Wi-Fi there. It’s easy to get connected. The Wi-Fi element in Starbucks is so significant, that T-Mobile and AT&T are slugging it out to see who can pay more for the privilege.
Business friendly. People meet there to do business. There are plenty of tables and chairs. Some even use Starbucks as an office.
Social friendly. People meet there socialize.
Clean restrooms. For the most part.
Their latest addition - the little green stick. How obvious is that?
Beyond a cup of coffee. You can purchase other stuff at Starbucks besides your cup of coffee. A pound of your favorite blend to take home. Mugs to drink it from. And espresso machines so you can be your own barista.

SUMMARY: People are willing to stand on line, pay in advance, and walk three blocks in the rain to get their Starbucks jolt.

LESSON: Look at the Starbucks model of multiple ways to purchase the same core product. Coffee. Look at the atmosphere in which they sell it. Warm and friendly. Look at the consistency of the delivered product. And look at the detail that they go through in order to make certain that you are gratified to make that purchase, and likely to return. Then compare those elements to your business. And tell me if you can stack up to the Starbucks standard.

How friendly are your people?
How flexible are your product offerings?
How easy is it to buy things and pay for things in your company?
Who is willing to come to your place every day and spend money?

CHALLENGE: Take ten of your people - your sales team, your office team, even your production team - to Starbucks on a field trip. Buy stuff, drink stuff, eat stuff, and study what it is that they’re doing in order to make the customer loyal without sacrificing price or quality. Bring that information back to your business and put it into action.

I’ll have three shots of espresso in a tall cup with a splash of coffee. Make sure you put in a green stick. What’s yours?
Posts: 41
Joined: Tue Mar 31, 2009 1:49 pm
Location: Holland, MI
full name: Jack Groot
company: Midwest Barista School and JP's Coffee
: www.midwestbaristaschool.com

Re: "Good Morning, I need a cup of coffee" by Jeffery Gitomer

Postby Charles Nelson on Sat Jan 23, 2010 1:46 pm

This is the most informative write up on Starbucks I have ever read. I just took over a cafe, doubled the sales and made it crazy busy and then sold it recently after a couple of years. I am planning my next cafe and will be keeping Starbucks in mind. They do know how to work it! Coffee awful though!
Charles Nelson
Downtown Coffee
900 Fort Street Mall
Honolulu, Hawaii, USA
Charles Nelson
Posts: 2
Joined: Mon May 26, 2008 2:50 am
Location: Nagano, Japan
full name: Charles Nelson
company: Kohikan

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