On Starbucks, Bistro Boxes and the iPhone

Starbucks sells coffee. We know this. They sell a lot of coffee. We also knew that. However, having developed a taste for the stuff only while in college, and not during my 18 formative years in the coffee paradise of Seattle, I had no idea how much coffee Starbucks actually sold in Seattle. It's quite staggering. Everywhere you go you see the green straws and iconic Starbucks logo. Occasionally you see a Tully's cup, or Seattle's Best, or even Pegasus, but Starbucks is king. But even here where coffee borders on a drug, it would seem that one can only drink so much coffee per day. And while some scoff at this assertion, it's mostly true. However, Starbucks sells much more than coffee. They sell snacks, yogurt and granola parfaits, pastries, breakfast sandwiches, small lunches, and now, bistro boxes. These boxes grabbed my eye as visually attractive, catchingly named and priced ($6.95) at a price both agreeable to consumers and likely high margin to Starbucks. It's a play into the ultra-competitive lunch market. Starbucks has the built-in hook of coffee, as loyal java consumers may become loyal java AND lunch consumers. But beyond coffee and food, Starbucks sells what every successful company sells: an experience. You go to Starbucks for the friendly staff, homey wood paneling and a small bit of luxury, be it a Macchiato or Cappucino. Starbucks is selling an experience, an emotional one. The coffee and the food are merely deliverers of the experience, cogs in the wheel. Enough about amorphous feelings, what about the iPhone? Starbucks was one of the first to accept payments via their iPhone app, via a built in barcode (no Starbucks pun intended on the "via"). The app interface is sleek and simple to use. The real gain is not convenience for the consumer, it's reduced credit card fees for Starbucks. Instead of paying a fee (which often has a floor) per transaction, Starbucks pays only per reloading of each mobile card. Each transaction using the iPhone (or mobile card) has no cost, since no credit card is being used. It's genius and the savings go directly to the bottom line. Bistro boxes and the iPhone, two huge reasons Starbucks will continue to grow.

Books

Why We Make Mistakes-Joseph Hallinan

An interesting read broken up into small segments of mistakes people make and why. Somewhat enlightening, partially engaging.

Pour Your Heart Into It-Howard Schultz

Quick and engaging read. Schultz tells us of his journey to Seattle, his fascination with the Italian way of coffee, and how he came to own Starbucks. Recommended.

When The Rivers Run Dry

Very in depth discussion of the water crisis facing the US and the world. Unless you want to spend a lot of time in this book, it's not worth it.

The Alchemist-Paulo Coelho

A sort of "life journey/allegory" book. Very engaging and thought-provoking. Recommended

Love Survivor-Marcus Luttrell

Biography of Marcus Luttrell from his journey into the Seals to the fight that killed his partners. This book fosters an immense amount of respect for our military and a pretty strong feeling of safety. Quick read.

Dare To Prepare-Ronald Shapiro

Worthless book. Did you know that being prepared increases your chances of success? Yeah, me either.