1.17.2008

Starbucks and Life Groups

While in Europe we saw Starbucks everywhere (except Rome) but swore off all American food over there. Quick sidebar...McDonald's in Europe does not look anything like here. It was a relatively classy place which offered a variety of espressos, coffees and morning pastries.

I have always admired Starbucks for creating and commodifying the coffee culture around the world. But Starbucks is losing its mojo with its stock price dropping 50% since the beginning of the year...it fired their CEO Jim Donald and brought back ex-CEO Howard Schultlz to reinvigorate the brand.

People have been speculating at reasons why Starbucks is losing its death grip on the coffee industry. Increased competition from McDonald's and Dunkin Donuts as they move more upscale. Slowing economy and even Schultz himself saying last February Starbucks had traded expansion for a loss of customer experience.

This past summer Ben handed Life Groups to me and asked me to reinvigorate it. For churches, small groups offers the place that, regardless of how big you are, you remain small. Starbucks grew so fast the intimate experience people had of baristas knowing your name became commodified. And as we continue to grow the challenge will be to offer our people a place to call home, a place of community. So the challenge is out there...as you become bigger, you must become smaller.

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