"We somehow evolved from a culture of entrepreneurship, creativity and innovation to a culture of, in a way, mediocrity and bureaucracy."
No, it’s not a radio CEO, but it sure could be. It’s Howard Schultz, the on-again-off-again CEO/creator of Starbucks. Returning to the helm of a suddenly struggling company in a more competitive, recession-scared world, Schultz has laid out an aggressive to new plan… to Wall Street and his thousands of stores.
It’s about bringing back that original feeling that you had many years ago when you walked into a Starbucks – that your coffee was custom-brewed, and the barista knew your name. Schultz is also initiating a loyalty club component so that "regulars" (like me) can enjoy greater benefits. And overall, it’s about a high-quality coffee experience, rather than the brew that McDonald’s or Dunkin’ Donuts offers.
All of these innovations and improvements will cost money. They will take time. But that’s the process that’s required in the quest to re-imagine and improve the experience of walking into a Starbucks.
These are bold steps, but they’ve already attracted the attention of investors, customers, and the company’s employees. Every industry goes through a downturn, a challenge, and at times, a redefinition of its purpose. Schultz may not have all the answers, but he’s bringing back a sense of leadership and change to his company. He also realizes the showbiz aspect of the Starbucks experience. As investors and employees lined up as early as 6 a.m. for the company’s stockholders’ meeting, they were treated to a barbershop quartet and baristas serving free coffee. At the end of the day, Starbucks – like radio – is in the entertainment/experience business.
Radio could clearly learn some lessons from Schultz’s efforts to resuscitate his business – both with customers and investors. It starts in the boardroom, but needs to ultimately change and electrify the customer contact point – Starbucks stores. Or in our case, our radio stations.
Now if they’d only make free Internet part of their new initiative.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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By getting back to basics, is Starbucks really innovating? The coffee king’s real issue is that it lost focus of what’s most important — damn good coffee made by people who are friendly. Like so many companies, once Starbucks hit its stride it decided to cut costs and branch out. It cut costs through its coffee making process and it branched out by becoming a record company, sandwich shop, and a few other silly things.
Only time will tell if the “innovation” of getting back to basics will put Starbucks back on track. What the old/new CEO needs to do is look at Steak ‘n Shake. It makes burgers and shakes. Sometimes they ‘shake’ things up with a new shake flavor, but that’s about it. What they get right time and time again is making great burgers and delicious frosty drinks.
“At the end of the day, Starbucks – like radio – is in the entertainment/experience business.”
So true. Too bad too many managers come from non-radio backgrounds. You want to sell advertising, but don’t have a background in radio? Why not try billboards? There’s ZERO entertainment tied to that.