Caribou Bumps The Brand Owner

Americans drink more coffee than any other country in the world.

So it's a big deal when the current brand owner (here's a little word association - coffee: ______ ) shows up as an also-ran. At least one reason Starbucks is closing stores and locking up for an afternoon of re-training is Caribou, a little company out of Minneapolis with stores in 16 states.

The atmosphere at every Caribou I've ever been to is great, and wi-fi is free, vs. a charge of about $4 for two hours at Starbucks, down from the old $10 rate. But those are the perks (ha!) - the core product is still the coffee right? While I've always thought Caribou's product was competitive, I'm no connoisseur, so take the results of the March Consumer Reports coffee survey. Caribou's Columbia Timana comes in second only to Eight O'Clock's 100% Columbian for flavor, and for you coffee-achievers, it's highest among the top four for caffeine content at 195 mg/cup. (Starbucks top brew comes in at #4, but that puts it in the "good" category, down a notch from the "very good.")

For the long haul, build your brand on a quality product and customer service (and a little caffeine helps too).

Starbucks - The Missing Three Hours

Caribou should have seen a little spike for three hours yesterday afternoon as thousands of Starbucks customers were forced to drive down the road to order "grandes" instead of "ventis." Can you communicate the importance of "we'd rather not do business at all than not do business right" by closing your doors to your customers in order to do training?

Jon writes to explain the logic behind Starbucks' marketing decision: Howard Schultz wants everyone to know he has "retaken" the company and is behind this move. They are reigning in growth in the States in favor of more overseas expansion which could make more sense. Building more stores doesn't mean people will stop in more times in a day for coffee just because they pass five more stores on their ride home.

They grew too fast, took business away from established stores, caused managers to miss their bonuses (because of the cannibalization) and created some unhappy baristas. It looks like they are going back to their "happy place" of what makes Starbucks what it really is; a company that is 100% coffee. To wit, they just got rid of their expanded food program. Customers don't go to Starbucks for a salad and sandwich, they go there for a latte and a scone.

It's clearly a great company that had the right marketing going, but got too big and drifted away from their roots and their niche of what they do THE BEST IN THE WORLD. If they get back to what made them great, they'll be fine. An anchor on FoxNews was just ripping on customer service and how it took ten minutes to get a latte. That's not good. You pay $5 for a latte that is made fast, well and with a dash of coffee attitude. Today's closing is for that reason. Back to basics!

Thanks Jon - great lesson here for all of us.