Hey Abrham!

Thanks Starbucks for writing Abrham on my breakfast purchase this morning. 

Apparently, religious sterotypes are alive and well with you. 

How about a little sensitivity training for your staff or do you guess biblical names for all your customers?

Don't worry though, it turns out that is my Hebrew name (and I'm Jewish and proud of it), although it's spelled like this: Avraham. ;-)

(Source Photo: Andy Blumenthal)

Hey Abrham!

What A Waste Of Coin

Coming to work this week, I saw a penny on the ground...then another...and another.

I saw people passing the money, and instead of picking it up, they kicked in off the curb.

That's even worse than throwing them into the fountain where at least you might get some good luck from it. 

Thus, the state of our minting of coinage--it's essentially worthless.

After getting a pretty basic Venti Java Chip at Starbucks for a whopping $5.45, I quickly calculated, I would need 545 pennies,109 nickles, 54.5 dimes, or 21.8 quarters o pay for this--how ridiculous!  

And uh, how many of these would you need to pay someone one hour at the new proposed minimum wage of $10.10 if you did it in coins?

Otherwise, I could just give them a credit or debit card--yes, sort of a no brainer, right?

Why do we keep making coinage that no one wants or needs in the digital age?

We have direct deposit for payroll, automatic deductions for many expenses, online banking, ecommerce , credit and debit cards, paypal, and even bitcoin...let's just be honest and admit it, traditional money is basically obsolete. 

At Starbucks, I see many people now just use their Smartphone App to pay and get rewards--another advance. 

Someday soon, we will have embedded chips that simply add and deduct payments as we go along and live life--it's really not all that complicated. 

The funny thing also is that it costs more to make many coins then their intrinsic worth--and hence the drive towards making coins with cheaper materials. 

According to Business Insider, in 2012, a penny cost 2.4 cents to make and a nickle 11.2 cents--quite a losing proposition. 

While there truly are some valuable coins out there and I appreciate that there are many coin lovers and collectors--numismatists--perhaps there are alternate hobbies to consider. 

A colleague once told me that "If you watch your pennies, the dollars will follow"--and that may be some good investement advice, but in a 24/7 society and after decades of inflation, there isn't enough time or room to collect all the pennies we would need to make much of a difference. 

ABC News reports that while our northern brother, Canada, got rid of the penny in 2012, we still make something like 5 billion of these useless things a year. 

Full disclosure: my first job in Washington, D.C. was for the U.S. Mint, and while there were good things about it, I could never feel good about the mission--it just had no purpose. ;-)

All Opinions my own.

(Source Photo: here with attribution to Maura Teague)

What A Waste Of Coin

The Starbucks Playbook

I'm in Starbucks and this young lady is drawing one of Starbucks promo signs. 

This one was for the new Starbucks Caramel Flan which is a latte (coffee with a shot of expresso and frothy steamed milk) with whipped cream and generous topping of caramel.

In making the sign, the girl was nervous that she wouldn't do a good job because of her drawing skills, but she was actually doing pretty well.

I learned some interesting things from her that the big picture of the cup of coffee on the sign is actually a magnet--so that just snapped in place and was a big help.

Then as you can see on the left, she is a holding a playbook from Starbucks Corporate that has a miniature version of the sign that she is supposed to draw with instructions. 

So this is her guide and the same used by all the other Starbucks putting up this promo this week. 

From a marketing and branding perspective, this helps keep it tight in terms of the messaging, timing, and look and feel. 

Starbucks leaves nothing to chance with their coffee sales and this methodology of having each store draw the promo by hand but from a playbook makes it both authentic and professional. 

Nice job with the Caramel Flan sign! ;-)

(Source Photo: Andy Blumenthal)

The Starbucks Playbook

Andy Blumenthal With Harry Basil From The Laugh Factory

So Harry Basil was great at The Laugh Factory.

His costumes, impersonations, and audience involvement in his act was well done. 

In the course of about half an hour, Harry spanned the gamut from Arnold Schwarzenegger to Leonardo DiCaprio, Eminem to Michael Jackson, and from Batman to Superman.  

He was very animated and played with the people in the audience--so quick, spontaneous, and always in control. 

This morning, I took this photo with Harry Basil at Starbucks. 

As we started to walk away down the hall, my wife (who is wont not to take the greatest photos) says "Oh, I don't think the picture came out, it was too close."

And as we were going to start bickering, it was so funny...Harry pops up right behind us, and goes "Was it too close--let's take it again."

Another thing that happened that was interesting at The Laugh Factory, was when we were about to be seated, I said sincerely to the host "How are you doing this evening? Happy holidays!"  

He goes to me, "No one ever asks me that. You know what? I'm going to give you seats right up by the front," and he did. 

It was a lesson for all of us about talking and treating people nicely--what goes around, comes around. ;-)

Andy Blumenthal With Harry Basil From The Laugh Factory

Nation's Homeless Capital

I took this photo yesterday of a homeless person completey huddled under a makeshift blanket "shelter"and tucked into a corner on the freezing streets of Washington. D.C.  

The person is in front of Starbucks, and they seem to have been provided some hot coffee to help-- a nice thing by the coffee chain. 

It has been particularly freezing this last week and seeing the number of homeless people suffering is unbelievable. 

Just being out for a few minutes bundled up in layers, I was still cold, so I can hardly imagine what it is like to be out on the streets, living like this for prolonged, indefinite, periods of time. 

When you see others' suffering in such a pronounced way, it is hard to take life's often silly daily problems as seriously, and we shouldn't.

When I juxatopse this scene, multipled thousands or perhaps millions of times over across the nation, it is also hard to understand a nation such as ours with $17.2 trillion dollars in debt.

Where the heck did all that money go? 

(Source Photo: Andy Blumenthal)

Nation's Homeless Capital

Recognition Inspires

Thought this was really nice at Starbucks. 

A place to show respect and recognize your colleagues. 

How often to we take others for granted for what they do--oh, it's their job or as one boss used to say coldy and harshly that their employees' recognition is that they get a paycheck every 2 weeks!

But people are not machines--they have feeelings, they need to be motivated, inspired, and appreciated. 

And recognition doesn't just come from the chain of command, but from peers, customers, and other stakeholders. 

We can do a good deed simply be recognizing the hardwork that people make on our behalf, for the customer, or the organization more broadly. 

Taking people for granted is the easy way out.

But saying a genuine thank you and placing a card of recognition in the pocket of the posterboard or otherwise showing your appreciation with an award, a letter of gratitude, or telling people they "did good"--takes an extra effort, but one definitely worth it! ;-)

(Source Photo: Andy Blumenthal)

Recognition Inspires

Government Shutdown - Starbucks

So today is Day #2 of the Federal Government Shutdown. 

This is a picture from the local Starbucks that is typically billowing at lunch time--as you can see it's basically a morgue. 

Unfortunately, hard-working Federal employees, contractors, and local business are feeling the impact!

Even from those that are still working, there is word of "survivor's guilt"--like with a plane crash or other calamity, when those who survive the catastrophe question why they were so fortunate when the others weren't so lucky and perished. 

With both the budget shutdown and the impending debt ceiling showdown--we are facing the perfect storm, with real negotiation and compromise yet to emerge.

With this all, our significant national problems aren't going away--to the contrary, Iran and North Korea are still global nuclear threats, Syria still has chemical weapons, the economy remains on shaky ground (in the paper today, the once high-flying pharmaceutical company Merck is planning to lay off 20%!), the national debt continues to spiral out of control (albeit at a "slower pace"), cybersecurity remains a major national security risk (although Cyber Command continues to stand up its new headquarters and firepower), and so much more. 

Bubble stocks rose again yesterday after an almost 20% one-year return. Not only that, but the safety of gold took a beating again after an almost 40% one-year decline (full disclosure, I am a recent investor in the latter). One has to wonder how long it will take for sanity to prevail once again. 

(Source Photo: Andy Blumenthal)  

Government Shutdown - Starbucks

Benefits of Coffee

So we went to see Bruce Willis's new Die Hard Movie today--"A Good Day To Die Hard."

Lot's of action, shooting, awesome weapons, attack copters, and car chases. 

We stopped on the way for a cup of coffee--but it wasn't Starbucks--which is sort of so cliche and boring already, but a mom and pop place--and it was nice. 

They had a refreshing variety of coffees, cozy tables, and good eats.

One thing, I couldn't help noticing was this funny sign on the wall touting the benefits of coffee--"Do stupid things faster with more energy."

I guess with compact energy shots like 5-Hour Energy, you can do stupid things not just faster and with more energy, but for longer periods of time as well. ;-)

(Source Photo: Andy Blumenthal)

Benefits of Coffee

Love To Love You Dunkin'

This is my dream drink. 

Dunkin' Donuts Mocha Iced Coffees.

Two a day, yay!

This town really does run on Dunkin'.

Starbucks, you got great ambiance, but your coffee ugh! 

(Even though we disagree in the family on this one :-|)

There is no IT in coffee, but I don't care, I love you anyway. 

(Photo Source: Andy Blumenthal)

Love To Love You Dunkin'

3 Things A Robot Can Do That Your Employees Can't

A little Monday morning humor...not that you'd necessarily want them to do these things...but if you're already shelling out, you may as well get your money's worth. :-)

1. "Stand on one foot, twist its waist and strike poses" (well, some of us can do that...)

2. "Travel 86 miles around the office without stopping."

3. Point at things in the office using a laser pointer in it's right eye.

But the best thing of all, seriously, is that the new wave of robots coming off the assembly line can "fetch lattes from Starbucks."

Make mine a double!

(Source: Bloomberg BusinessWeek 17-23 Jan. 2011)

(Robots pictured: HRP-4, PR2, and Anybots QB)

3 Things A Robot Can Do That Your Employees Can't

The Whopper Bar and Enterprise Architecture

First, let me start off and say that I am Kosher and have never had a big Whopper. Nevertheless, Burger King has announced plans for a Whopper Bar that sounds marvelous!

The Wall Street Journal, 29-30 March 2008, reports that “Burger King Holdings Inc. plans to start building a new version of its restaurants this year called the Whopper Bar that will sell a wider variety of its signature hamburger in a hipper setting.”

The menu “could include as many as 10 types of Whoppers…one menu sketch has a section called ‘pimp your Whopper,’ where patrons can chose from additional toppings.” Beer may be on the menu as well, especially in overseas markets where it already sells alcohol.

The Whopper Bar “is akin to McDonald’s Corp.’s creation of McCafe coffee bars, except that it is built around the chains signature sandwich.”

“Workers will place toppings on burgers in front of the customers ‘to put a little more theatre into it.’”

“Early design plans call for the bars to have chrome, wood, and exposed brick and plasma screen televisions with images of fire playing on them to evoke Burger King’s flame-broiled motto.”

The bars are planned “for places like casinos, airports, and other venues with limited space.”

The Whopper Bar tastes right from the start from a User-centric enterprise architecture perspective. Why?

Well traditional fast-food joints tend to be somewhat dirty and unsightly “restaurants” (and I use this term generously here). It is not unusual to find filthy bathrooms and the restaurants being used as shelter, especially in the inner city—how do I know, I’ve stopped to use the restroom on occasion.

From what I’ve seen, even if I was not Kosher, there is very little appeal in eating the food in these establishments. Moreover, the unhealthy stigma of the extremely greasy food is a Whopper of a turn-off.

This is exactly why the Whopper Bar is such a genius idea. It borrows from the success of Starbucks and their magic formula for creating a high scale ambience from a simple cup of joe. It also, elevates the unhealthy food by them making it in front of you—taking away the stigma of what goes on “in the back.” The result is more upscale and not-so-bad for you at least in perception.

The target architecture here is exactly what many customers want. A fast, cheap meal, but in a feel good environment. In fact, my advice to Burger King would be to roll out the Whopper Bar much more broadly, and replace their traditional eatery concept altogether.

In this case perception is everything!

The Whopper Bar and Enterprise Architecture

McDonalds and Enterprise Architecture

User-centric EA is focused on meeting the architecture needs of the users and stakeholders.

The Wall Street Journal, 7 January 2008, reports that McDonald’s is changing course and installing specialty coffee bars like Starbucks.

The question is whether this new target architecture for McDonalds is meeting the needs of their consumers or are they simply copying Starbucks business model (but it’s wrong for McDonald’s clientele)?

“McDonald’s is setting to poach Starbucks customers with the biggest addition to its menu in 30 years. Starting this year, the company’s nearly 14,000 U.S. locations will install coffee bars, with ‘baristas’ serving cappuccinos, lattes, mochas, and the frappe, similar to Starbucks ice-blended Frappuccino.”

McDonalds and Starbucks, which at one time seemed to be in completely different market segments are now going head-to-head. “McDonald’s upgraded its drip coffee and its interior, while Starbucks added drive-through windows and hot breakfast sandwiches.”

McDonald’s is expecting to add $1 billion in revenue (to their annual sales of $21.6 billion) from this coffee program and the addition of smoothies and bottled beverages. “McDonald’s is entering the sixth year of a successful turnaround, while Starbucks has begun struggling after years of strong earning and stock growth.”

So it seems like McDonald’s knows what they’re doing right now.

What’s driving the McDonalds-Starbucks convergence?

“Convenience has become the dominant force shaping the food-service industry. Consumers who are unwilling to cross the street to get coffee or make a left turn to grab lunch have pushed all food purveyors to adapt the strategies of fast-food chains.”

“McDonald’s executives say they aren’t launching espresso drinks to go after Starbucks, but instead to cater to consumers’ growing interest in specialty drinks.”

McDonald’s has realized that “they were missing out on the fastest-growing parts of the beverage business. Data showed that soda sales [McDonald’s specializes in Coke] had flattened while sales of specialty coffee and smoothies were growing at double-digit rates outside McDonald’s. Customers were buying food at McDonald’s, then going to convenience stores to get bottled energy drinks, sports drinks, and tea, as well as sodas by Coke competitors.”

Finally, McDonald’s has done extensive research and testing on the introduction of the coffee bars, including “three hour interviews where they videotaped the customers talking about their coffee-buying habits. The researchers got in the cars of the customers and drove with them to their favorite coffee place and then took them to McDonalds and had them try the espresso drinks.”

McDonald’s new strategy is well researched and data driven, and their identification of user needs and trends, like convenience and specialty drinks, is sound and appears like a solid user-centric EA target and plan.

However, could this strategy still backfire for McDonald’s?

Yes, “it could slow down operations and alienate customers who come to McDonalds for cheap, simple fare rather than theatrics. Franchisees say that many of their customers don’t know what a latte is.”

Will the new McDonald’s target architecture succeed?

Yes and no. While McDonald’s is off to a very good start—in February, “Consumer Reports rated the chain’s drip coffee [the precursor to their new coffee bars] as better-tasting than Starbucks,”—yes, I know this hard to believe, for me too—it seems unlikely that McDonald’s can easily emulate the Starbucks ambiance of style, comfort, and hip that their stores offer. Let’s face it, you like to hang out in Starbucks, but you barely want to touch the skeevy environment in McDonalds.

McDonalds and Enterprise Architecture