Becoming More Similar than Dissimilar?

Back in the day at Starbucks, we used to laugh at how people would try to say 'Starbucks is the McDonald’s of coffee.' However these days, Starbucks and McDonald’s seem to becoming more similar than dissimilar. (Reckon this has something to do with the “Excess of Access.”)

BusinessWeek has an interesting take on how Starbucks is becoming more McDonald’s-like and how McDonald’s is becoming more Starbucks-like …

[SOURCE: BusinessWeek | December 5, 2005]

There are two other ways Starbucks is becoming more McDonald’s-like – OPERATIONS and the “McRib Mentality.”

From an operations perspective, Starbucks is going from hand-crafted beverages to machine-prepared beverages. Starbucks is replacing all of its La Marzocco espresso machines with automated espresso machines that dose, tamp, brew, and steam milk with the push of a few buttons. Automated espresso machines make beverage prep so much easier and so much faster for Starbucks Baristas … similar to the systems McDonald’s uses to make hamburger prep easier and faster for its front-line employees.

Starbucks has adopted the “McRib Mentality” by introducing more limited-time only beverages such as Pumpkin Spice Latte, Toffee Nut Latte, etc. These promotional beverages usually bring a higher price point and add some zest to the same-old menu board for customers. The higher price points and added zest of these "McRib" beverages translates into driving higher year-over-year sales at Starbucks.

So ... what else would you add/delete/modify to this Starbucks is becoming McDonald’s as McDonald’s is becoming Starbucks comparison?

Comments

[Brad Respess]

At first, Starbucks was a novelty for us in Atlanta and the experience was enticing. Now, however, they are everywhere-airports, hotels, overseas. As they continue the trend towards McDonald-ness, they can also begin to be like TGI Friday's, Chili's, Outback. In other words, just another chain with no draw except an expensive cup of joe. The door is wide open for independents to thrive. Starbucks, now a mainstream brand, will may do well, but will battle the "blah" effect of oversaturation and standardization. Give me something local and something different.

[Stephen Macklin]

Much like McDonalds once you've been to one Starbucks, you've pretty much been to them all. The newness is gone. The coffee may be good, the "experience" may be great but its become the norm. [cliche alert] they need to raise the bar again and find a way to infuse some life back into the brand - and Pumpkin Spice isn't doing it - or they'll just continue to become ordinary.

People will start looking for alternatives just because they want something different.

Moving away from hand-crafting to automation is probably a mistake. Compared to the small independent that puts them one small step from a drive up window.