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.

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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.

 

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