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Posts with tag: coffee | Return to ShoppingBlog.com Homepage

Business Week: Starbucks' Hard Sell of Via is Irritating Customers, Baristas

Business Week reports that Starbucks' aggressive sales pitch for its new instant coffee Via is really irritating customers and baristas alike. Baristas seem themselves as bartenders, not sales people, and really hate having to push the new product. Customers don't like the hard sell either.
It's too early to say whether Via is a success. But judging from the coffee blogs, including the company's mystarbucksidea.com, for some baristas the pressure to sell the product is intense and unwelcome. "This is the most stressful promotion I have ever experienced, and I've been with the company for seven years," a barista wrote on starbucksgossip.com. Some customers are finding the hard sell a bit exasperating, too. As one wrote: "Please no more high-pressure Via sales pitches. It's annoying … it's completely out of line with Starbucks' vibe."

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Starbucks sees great potential in Via: Instant coffee is a $21 billion global market. And Starbucks made a significant investment in Via, the biggest product rollout in its history. Naturally, executives set ambitious sales goals. There, perhaps, lie the roots of the problem. Starbucks baristas typically think of themselves as akin to bartenders, not salespeople. "We were just told to place a Via 12-pack in the customer's hand while asking if they would 'like to add some Via to their order,' " blogged one barista. "I have seen more annoyed customers than enthusiastic ones from all these strong-arm sales tactics. ... Not to say it's not a good product. I think it just needs to be kept in the supermarkets next to the other Starbucks mass-market frill."
We've seen Via in our local Starbucks but so far no one has tried to sell us any. We haven't tried it, so we have no idea how it tastes. But then again we really don't drink instant unless we are in some kind of emergency situation where espresso is unavailable.

Posted on November 13, 2009
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Seattle's Best Coffee to be Served at Subway Chains

Seattles Best SubwayForbes reports that Seattle's Best, a coffee brand owned by Starbucks, will be sold at Subway. 9,000 U.S. Subway shops will carry Seattle's Best coffee by the end of this year.
Starbucks said Subway will add the brew to more locations next year. Seattle's Best will also be served at 800 Canadian locations by late December.

"We want to be able to take Seattle's Best Coffee out of the shadow of Starbucks and really, for the first time in its history, have a life of its own," Starbucks CFO Troy Alstead said during a conference call Thursday evening
The deal gives Subway a good gourmet coffee to sell which could make it a more attractive destination for coffee lovers. Some Subway shops sell more gourmet items than others. Those that have more gourmet sandwich fillings will likely to sell more gourmet coffee.

Posted on November 6, 2009
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Starbucks Seeing Uptick in Sales

Starbucks has been hard hit by the recession as consumers cut back on items such as gourmet coffee. It has closed many locations to save money. But now the company says that demand is starting to pick up.
Chief Executive Howard Schultz said in a conference call that a "more disciplined focus on operations" helped the company increase earnings and that it is seeing improvements in its surveys of customer satisfaction. During the quarter, Starbucks cut prices on so-called easy-to-make coffees, while lifting prices by as much as 30 cents for larger and more complex drinks, such as a venti caramel macchiato.

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Mr. Schultz said the company is encouraged by the national rollout of its Via instant-coffee product. Via is "resonating with customers" and is having little negative impact on traditional coffee sales at Starbucks, he said. Starbucks began making Via available in September in all its cafes in the U.S. and Canada, as well as in other locations such as hotels and bookstores. The company created Via, which costs $2.95 for a three pack, to try to reach consumers who aren't inclined to splurge on a regular coffee purchase.

Starbucks, which has about 11,000 U.S. outlets, reported $53.2 million in restructuring charges for its fourth quarter, almost all of which stemmed from store closings. The company said it had shuttered nearly all of the roughly 800 U.S. stores and 100 international stores in its previously announced store-closing plans.
The company is cautiously optimistic about the upcoming holiday season.

Posted on November 5, 2009
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Illy Coffee Makes Its Move in North America

Photo of woman drinking Illy coffee Italian coffee maker IllyCaffe SpA is making a move on Starbucks. Illy is a closely held company based in Trieste, Italy, that makes really delicious coffee. We love it hot or iced. Now Illy is expanding its reach and negotiating deals to be the only coffee served at selected cafes.
For the shops, aligning with a premium brand is a way to differentiate themselves from chains and other independent shops--and to charge higher prices. At Caffe Greco in San Francisco's North Beach neighborhood, owner Hanna Suleiman says sales have increased by 10% and profits by 3% since the shop signed up with Illy a year ago.

Illy began signing up independent shops, mostly in Italy, three years ago in a program called "Artisti del Gusto," or Artists of Taste. It brought the program to the U.S. last year. Illy supplies shops with Italian espresso machines, coffee cups, artwork, drink recipes and intensive training, after which the cafe becomes a certified Illy purveyor. In return, the shop must agree to serve only Illy coffee for at least three years.

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There are currently 28 U.S. shops operating under Artisti del Gusto certification and Illy plans to add 100 more in the next three years. The company also is moving the program into Canada and Mexico.

Illy staffers in North America visit certified shops to check quality standards. The stores are routinely scored on how well they steam milk and clean the espresso machines. If cafes aren't performing up to par, Illy provides additional training while reserving the right to yank their certification, says Gregory Fea, chief executive of Illy's North American business.
The more Illy the better, as far as we're concerned.

Posted on November 4, 2009
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Dunk Mug Contains a Compartment to Hold Your Cookies

Mug Cookie Holder


The Dunk Mug has a compartment where you can keep a couple cookies or biscuits. The mug comes in right and left handed versions. It is made and manufactured in the UK. The idea behind the mug is to keep you have from having to juggle a cup of coffee and a plate of cookies. You can purchase the unique mug here for £13.99, which is about $22 U.S.

Posted on October 11, 2009
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Starbucks Debuts Its Via Instant Coffee Product

Starbucks ViaStarbucks is kicking off the launch of its instant coffee product called Starbucks Via with a taste challenge. From Oct. 2 - 5, Starbucks invites customers to join the Starbucks Via Ready Brew Taste Challenge at U.S. Starbucks cafes. Participants can taste Colombia Starbucks Via next to fresh-brewed Pike Place Roast and challenge themselves to guess which one is Starbucks Via. Starbucks Via Taste Challenge participants will receive a coupon for a complimentary Tall brewed coffee on their next visit as well as an offer for $1 off a Starbucks Via Ready Brew purchase.

Reuters reports that Starbucks is planning a marketing blitz timed with the arrival of Starbucks Via in stores in the U.S. and Canada this week. Starbucks wants a piece of the very large $21 billion instant coffee pie.
With Via, the coffee chain that introduced espresso drinks to the masses, hopes to steal a big slice of the $21 billion global instant coffee market from established players like Nestle SA's Nescafe and Kraft Foods Inc's Sanka.

"This is the biggest investment we've made in a national launch," said Schultz, who is navigating a turnaround at Starbucks while looking for new products to drive profits.

Starbucks will trumpet Via's debut in the United States and Canada with a week-long advertising campaign that will highlight in-store taste tests pitting Via against Starbucks brewed coffee.
Reuters reports that Starbucks Via retails for much higher prices than its instant rivals.
A trio of single-serve Via packets will sell for $2.95 in the United States and 12 packets will sell for $9.95. Those prices are significantly higher than Nescafe's Taster's Choice single-serve packets that sell in Los Angeles for roughly $1.50 for six and around $4 for 20.

< Starbucks aficionados "won't balk at the price" of Via if they believe it delivers on taste, said Bill Smead, portfolio manager of the Smead Value Fund in Seattle.
Sales should start out strong if people are curious about the taste. Beyond that it will depend on how much people like the taste of Via.

Posted on September 29, 2009
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Companies Make Eco-Friendly Fabrics From Coffee Grounds, Nettles

Scafe Process


The Guardian reports that an innovative company named Singtex Industrial is making an eco-friendly fabric out of used coffee grounds. The fabric called S.cafe also provides UV protection.
The process of making fabric out of coffee grounds is very similar to that used to turn bamboo into a viscose-like material. The resultant fabric is soft, light, flexible and breathable and can also be used to produce an outer shell that is water resistant. It's impregnated with 'activated' carbon, derived from coconut, which makes it UV-resistant, wicks water away, keeps the wearer cool and binds to sweat to eliminate unpleasant odours.

Singtex says the fabric is perfect for mid and base layers for adrenalin-powered sports like rock climbing, as well as walking, running and yoga. Apparently, it only takes the grounds from one cup of coffee to make enough material for a couple of T-shirts.
Singtex also makes sportswear out of recycled plastic bottles. There are a number of companies making from fabrics from recycled bottles. The Guardian story also says a couple companies - Camira Fabrics and Brennels - are developing fabrics from stinging nettles.

Posted on August 23, 2009
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Starbucks to Raise Prices on Some Drinks

Bloomberg reports that Starbucks is raising prices on some of its drinks including frappuccinos and caramel macchiatos. Prices on some drinks will climb by as much as 30 cents. Extra shots will also cost more. The price hikes started today. There is some good news - Bloomberg says prices on Starbucks' lattes, cappuccinos and brewed coffee will go down slightly.
The increases average about 10 cents to 15 cents per beverage, and will also apply to extra shots of espresso or flavors, Valerie O'Neil, a spokeswoman for the Seattle-based company, said by telephone today. Prices on lattes, cappuccinos and brewed coffee will decrease 5 cents to 15 cents, the first price cut the company has made, she said.

"We're always looking for ways to provide more value to our customers while balancing our business responsibilities," O'Neil said by telephone today. "We're fine-tuning our pricing in select markets to better reflect geographic and cost considerations."

The coffee chain has seen sales fall in the recession as cash-strapped consumers visit the cafes less often. The price changes were reported by the Wall Street Journal earlier today.
Starbucks blamed the cost of doing business for the price increase on drinks. A report earlier this year indicated that people are already seeking alternatives to more expensive gourmet coffee. Price hikes aren't going to reverse that trend in a recession.

Starbucks also recently stopped selling the Sorbetto drink it had introduced in some of its California stores.

Posted on August 20, 2009
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Acid-Reducing Flavor-Enhancing Coffee Hourglass

Acid-Reducing Flavor-Enhancing Coffee Hourglass


Here's a potential solution for people who have to limit the amount of coffee they drink because of acid reflux. Hammacher Schlemmer has launched the Acid-Reducing Flavor-Enhancing Coffee Hourglass. Hammacher Schlemmer says this coffee maker brews with cold water to reduce the acid in coffee by up to 69.6%. The Hourglass does not reguire electricity - it uses gravity and time.

The user combines coarsely ground coffee beans with water in the brewing chamber and allows the coffee to infuse with the water for 12 to 24 hours. When the infusion process is complete, the hourglass is turned upside-down and 16 oz. of coffee extract drains through a reusable stainless steel filter and into the extract chamber. The extract makes up to eight 8-oz. cups of coffee per brewing cycle and the extract can be kept in the included carafe and stored in a refrigerator for up to two weeks.

The Coffee Hourglass can be purchased here for $79.95.

Posted on August 7, 2009
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Cafes and Coffee Shops Starting to Ban Laptops

Tired of customers who order one cup of coffee then sit at a table for hours with their laptop, many coffee bars are banning laptops, especially during peak hours. Owners say that the laptop users drive away paying customers, such as the lunch crowd which actually buys food instead of nursing a $2 cup of coffee all day.
A sign at Naidre's, a small neighborhood coffee shop in Brooklyn, N.Y., begins warmly: "Dear customers, we are absolutely thrilled that you like us so much that you want to spend the day..." But, it continues, "...people gotta eat, and to eat they gotta sit." At Naidre's in Park Slope and its second location in nearby Carroll Gardens, Wi-Fi is free. But since the spring of 2008, no laptops have been allowed between 11 a.m. and 2 p.m. weekdays and 10 a.m. and 3 p.m. weekends, unless the customer is eating and typing at the same time.

Amid the economic downturn, there are fewer places in New York to plug in computers. As idle workers fill coffee-shop tables -- nursing a single cup, if that, and surfing the Web for hours -- and as shop owners struggle to stay in business, a decade-old love affair between coffee shops and laptop-wielding customers is fading. In some places, customers just get cold looks, but in a growing number of small coffee shops, firm restrictions on laptop use have been imposed and electric outlets have been locked. The laptop backlash may predate the recession, but the recession clearly has accelerated it.

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Some coffee shops say they still welcome laptop users, if only because they make the stores look busy. For some, the growing number of laptop-carrying customers with time on their hands is reason to expand. "I had to add more outlets and higher speed" in early June, says Sebastian Simsch, 40, the co-owner of Seattle Coffee Works. Starbucks Corp. coffee houses, which in some cases charge for Wi-Fi, and bookstore chain Borders Group Inc., which always charges for Wi-Fi, don't have any plans to change their treatment of laptop customers. Neither does bookstore giant Barnes & Noble Inc., where the Wi-Fi is complimentary.

But in New York, the trend is accelerating among independents. At Cocoa Bar locations in Brooklyn and on the Manhattan's Lower East Side, a five-month-old rule forbids laptops after 8 on Friday and Saturday nights. At Espresso 77 in Jackson Heights, Queens, owners covered three of five electric outlets six months ago after its loosely enforced laptop-use restrictions failed to encourage turnover. At two of three Cafe Grumpy locations -- one in Brooklyn and the other in Manhattan's Chelsea neighborhood -- laptops are never welcome.
The recession had made more customers frugal. Owners tell of people bringing their own sandwiches to the cafes and their own teabags -- all they ask for is hot water. But the cafe owners cannot stay in business by allowing the tables to be filled with nonpaying customers. They are struggling, too. So far the trend is starting in New York and San Francisco, but is expected to spread to other cities as well.

Posted on August 6, 2009
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Starbucks Gets Inspired by Japanese Lean Techniques

In an effort to cut costs and decrease the amount of time it takes to get a coffee drink, Starbucks is turning to the Japanese for inspiration. The company hire former Toyota Motor Corp. executive John Shook to advise on how to retrain the store's baristas in what is called lean techniques. Lean techniques are used by many American companies to increase efficiencies in manufacturing, distribution and sales.

Store procedures are being changed to make drink making quicker and more efficient. For example, instead of having employees go to the back many time a day to get more pastries, a rolling cart is set next to the case so that restocking is quicker. A team is going from Starbucks to Starbucks to time employees and find ways to streamline the process, which is different for each store because Starbucks stores have many different configurations.
The company began testing lean methods in Oregon last year. One of the first stores was managed by Tara Jordan, in Oregon City. "In my eyes, we couldn't get better," says Ms. Jordan. Her store boasts one of the fastest Starbucks drive-through windows in the country, according to the company, with an average time per order of 25 seconds. To help her understand how work can be done more efficiently, Kim Landreth, a member of the lean team, brought a Mr. Potato Head to Ms. Jordan's store and sprinkled the ears, nose, lips and other accessories across several tables.

Using a stop watch, Ms. Landreth timed how long it took Ms. Jordan to assemble the toy and place it in its box. It took more than a minute. Ms. Landreth asked her to think about how she could complete the task faster. Moving items closer together shaved time, as did altering the order of assembly. Over two hours, Ms. Jordan amended the task. Her final time: about 16 seconds. "That really opened my eyes," she says.

The next project: observing the area where blended drinks, such as frappuccinos, are made. "I thought it was going to be the best station in my store," Ms. Jordan says. "What I saw was how much my partners were moving and reaching for things that were never in the same place. It took way too long to make one beverage," she says. They moved all but the most commonly ordered syrup flavors and now store pitchers closer to where the drinks are made. After learning that topping the drinks with whipped cream and chocolate or caramel drizzle at the drink station was slowing down production, they moved those items closer to where drinks are handed to customers. The changes shaved eight seconds off the 45-second process. "Just to top the beverage with whipped cream and drizzle took six seconds," Ms. Jordan says.

In all, new methods have cut two seconds off the store's drive-through time -- to an average of 23 seconds. Between September 2008 and June 2009, her store experienced a 10% increase in transactions. The company says that having food and drinks ready to go quickly can boost traffic because that keeps people from leaving stores.
Some employees are not happy about being timed with a stopwatch and complain they are being turned into robots. But customers seem to like anything that speeds up service. Some of the changes are better for employees: by not having to bend over to get coffee beans from under the counter many times a day, some back problems can be avoided. One thing's for sure: the days of visiting a laid-back, relaxed small coffee shop are pretty much over. It's go, go, go from here on out at your local Starbucks.

Posted on August 4, 2009
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Self Magazine's Lucy Danziger Talks Health and Coffee

Self magazine's Lucy Danziger showed Maggie Rodriguez some rare coffee beans that have health benefits. There have been reports coffee has health benefits including lowering dementia risk and protecting against skin cancer. It can also make exercise less painful. Lucy Danziger says it is actually the lighter beans that have more caffeine because they have not been roasted as long. She also gets Maggie Rodriguez coffee to try the Civet coffee, which is also known as "cat poo coffee." Take a look:



Posted on August 1, 2009
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London's Independent Gourmet Coffee Shops Say Business is Booming

Sarah McFarlane reports from London about an industry that is booming despite the recession: the niche gourmet coffee shops. Consumers who are cutting back on clothing and car purchases are making an affordable luxury such as a perfectly brewed cup of gourmet coffee part of their daily morning routine. Smaller shops, such as Sacred Cafe in London are packed with customers who want a unique, high-end coffee. Importers regularly hold tastings for the cafe owners, who want to find that special coffee that will make their shop stand out. Take a look:



Posted on July 26, 2009
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Tim Hortons Buys 13 Dunkin' Donuts Stores in New York City

Tim Hortons FoodTim Hortons is a Canada-based doughnuts and coffee chain. The chain is named after the late all-star Toronto Maple Leafs hockey player, Tim Horton. The chain has over 3,000 stores including 500 in the U.S. It is now poised to make an entrance in New York City. The New York Times reports that Tim Hortons has purchased 13 Dunkin' Donuts stores in New York City.
Tim Hortons, a Canadian purveyor of doughnuts and coffee that has won a wide following, is making a sudden entry into the city.

Between Friday night and dawn on Monday, the Riese Organization intends to convert 13 Dunkin' Donuts stores into the city's first Tim Hortons restaurants, including early-morning, high-traffic shops like the one in Pennsylvania Station and another next to the New York Stock Exchange. The switch may surprise regular customers of the shops, said Dennis Riese, chief executive of the Riese Organization.

"You take down one sign and put up another," Mr. Riese said. "The biggest challenge will be to get New Yorkers to know what Tim Hortons is."
The National Post says the Dunkin's Donuts could open as Tim Hortons' shops as early as Monday.

Posted on July 10, 2009
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Peet's Coffee and Tea Launches Bottled Iced Teas

Peets Bottled Iced Teas


Peet's Coffee & Tea has announced the launch of Peet's Bottled Iced Teas, a line of ready to drink teas made from Peet's whole tea leaves. The six new iced tea varieties are crafted from green, oolong, white and black teas. Five of the six are complimented with all natural flavors: Jade Green Lime Tea, Little Dragon Peach Tea, Moroccan Mint Green Tea, Snow Leopard Tea with Honey and Summer House Citrus Tea. Peet's says its Bottled Iced Teas are all "natural and very lightly sweetened." One of the bottled teas called Summer House Classic Tea is unsweetened.

"We've taken everything we know from our 43 years in the tea business and crafted unique recipes that bring out the best flavor in each iced tea," said Eliot Jordan, Peet's Tea Master of nearly 20 years. "It took us about five years to perfect this and get true tea taste into a bottle, but I think we finally got it right."

Posted on June 29, 2009
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