As many may know the majority of US Starbucks closed yesterday from 5:30p – 9pm for a company wide training session. Touted as half-training – half pep-rally, Starbucks seeks to turn around their recent financial losses and their growing reputation as producers of mediocre drinks.
With the economy on the decline, one could gather that there is also another underlying motive. Coffee drinks (especially those that cost upwards of $4.00) are the type of luxuries people cut back on in a recession. This is no time to be off your game.
This is a good reminder for all businesses to re-evaluate where their products and services stand in the mind of the consumer. Estimates are that yesterday’s Starbucks training session cost the company upwards of $5 million in lost revenue. But in context of their annual revenue of close to $10 billion, this is a good investment to safeguard against losing their customer base when discretionary dollars are tight.
Beth Anne Whalen
Director of Business Development
Palo Alto Software Inc.