Starbucks to Experience the iPhone Effect

Earlier this week, Starbucks switched on AT&T for internet access. Starbuck's move from T-Mobile to AT&T will result in over 12 million AT&T DSL and iPhone users having free Wi-Fi access at Starbucks, compared to T-Mobile's previous pay-per-user service.

Hundreds of stories have been written claiming the deal would benefit iPhone users, well what about Starbucks? I predict this new in-store offering at Starbucks will allow Starbucks to begin experiencing the iPhone Effect. Expect Starbucks to see an increase in store traffic and greater sales. Steve Jobs and his iPhone could help save Starbucks. After all, Howard Schultz can use all the help he can get. This is an example of the kind of strategic decisions Starbucks needs to make. The coffee company needs to stay away from brand damaging moves such as the in-store vending machine or even a Starbucks branded energy drink. 

You can find me at the Starbucks on Wilshire and Highland in Los Angeles. 

For more information on Starbucks, AT&T, T-Mobile, the iPhone, Steve Jobs, or even Howard Schultz, visit nobosh.com. 

Starbucks Introduces The Vending Machine (Clover)

Starbucks today announced that they were releasing a coffee vending machine called the clover. This is one of several ideas Starbucks Chieft Executive Office Howard Shultz is testing. The Clover also has the ability to grind beans without requiring the staff.

On Schultz's return to Starbucks, the returning CEO claimed he would re-invent the company. He sought out to return fix the broken Starbucks experience. Some of his first moves were to have stores return to grinding coffee beans in-house and other similar tactics to make Starbucks feel like the neighborhood coffee-shop it once was and not a large franchise.

The reason I'm writing this post is that I find Schultz's plan and implmentation in conflict. For example, a recent quote from Shultz said, "The goal is to reinvent brewed coffee in America," Schultz told ABC News "Nightline" anchor Terry Moran during an exclusive interview in the company's first store in Seattle. Well, how does introducing Starbucks coffee vending machines move the Starbucks experience forward? While I haven't experienced Clover, it sounds like a move in the wrong direction. In any case, its great to see Schultz trying customer ideas in an effort to fix the broken coffee chain.

For more on Starbucks visit nobosh's Starbucks page.