Starbucks - WJHS Team 7A

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Drive-thru menu change causes stir for Starbucks
By Bruce Horovitz, USA TODAY
What a difference a new sign makes.
At Starbucks drive-thrus — one-third of the chain's 11,000 U.S. stores have one — newly
redesigned outdoor menu boards advise customers that they can buy Grande (16 oz.) and
Venti (20 oz.) sized beverages. Curiously, the signs no longer mention the smaller, cheaper
cup size that's still for sale: Tall (12 oz.).
This has set the blogosphere abuzz. Some believe Starbucks is being sneaky — nudging
hurried, drive-thru customers to spend a tad more than they might have intended.
While Starbucks' same-store sales have grown nicely the past year — following very
difficult years in fiscal 2008 and 2009 — this negative reaction comes as the restaurant
industry is desperately searching for ways to boost traffic and sales. Some 44% of
restaurant operators reported a same-store sales decline in July, the National Restaurant
Association says.
But Starbucks officials strongly insist this isn't about nudging sales. They say the change is
actually something that drive-thru customers have requested — a simplified menu board.
Starbucks shrank the number of items on drive-thru menus from 70 to about 25. The
change was made at all drive-thrus on Aug. 31.
"We are not being sneaky," Starbucks spokeswoman Deb Trevino says. "We did it because
our customers were frustrated with the difficulty of reading our drive-thru menus."
What's more, she notes, drive-thru customers can still order Tall beverages. For that
matter, they can even order Short (8 oz.) drinks, which aren't posted on menus inside or
out.
But Robert Passikoff doesn't buy it for a minute. The founder of Brand Keys, a brand
consulting and research consultancy, says Starbucks is playing fast and loose with its
customers.
"It's disingenuous to suggest that how they simplified the menu was to benefit the
customer," he says. "I don't know why you'd suddenly drop your cheaper item off the
menu."
Well, responds Trevino, that's because the Talls don't sell as well as the Grandes and
Ventis. "We have to make choices about what we put
on our menus so that customers can get through as
quickly as possible."
Also, she notes, Starbucks is making more room on
its menus for the calorie postings that will be
required next year under the recent health care
reform. Chains with 20 units or more will have to
post calories on menu boards for standard menu items.
For the moment, Trevino says, Starbucks hasn't received "a significant number" of
complaints from customers about the menu board change. "That said, if customers don't
like a change we've made, we listen and will make changes, again."
Dennis Lombardi, executive vice president of food service strategies at consultancy WD
Partners, says Starbucks is getting a raw deal on conspiracy theories. "Starbucks is a wellmanaged company that knows exactly what it's doing. This hoopla will eventually quiet
down — until something else replaces it."
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Tomorrow, we will have a class discussion about the information in this article. As a way
to prepare for the discussion, please respond to the questions below.
1) List two further questions you have about the content of this article.
a.
b.
2) How is this new Starbucks menu a good idea?
3) Why would this change to the drive-thru menu make customers angry?
4) What is your personal response to this story? Please explain why you feel the way you
do.
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