Starbucks

I guess it’s obvious I don’t have an MBA. You see, unlike those power-suited corporate honchos, I can’t understand why a business complaining about rising costs, lower margins and decreasing profits, would want to waste untold millions of dollars to change its logo. Not its name. Its logo.

Yes, I’m talking about Starbucks. They were just forced to increase the retail price of their coffee, because coffee prices around the world are going up. Perfectly understandable. Starbucks is also complaining that prices for sugar and cream and paper cups and essentially ALL commodities are going up, and they’re feeling the pinch. Again, understandable. We’re ALL going to feel THAT pinch.

But despite crying poor, Starbucks is going ahead with their plan to remove the word “Starbucks” from their logo. That means that every one of their seventeen thousand locations in 55 countries will require new signage. Every window will need the old logo removed and the new one added. The old cups, paper bags, napkins, uniforms, and nametags will have to be replaced.

How much will all this cost? I don’t know, but I’d guess that it’s no less than the cost increases for sugar, coffee, and milk that they’re so upset about. So why are they doing it?

Like I said, I don’t have an MBA… and I’m probably not as smart as Howard Schultz, the founder and CEO of Starbucks. So I can’t figure out why he thinks this is a great idea. I just don’t see the bang for the buck in this move. Are people going to buy more for a Frappucciono because there’s a new logo? Will people switch coffee chains because there’s a new logo? Personally, I doubt it, so the change just seems like a waste of money.

I do know, though, that I was a Starbucks shareholder I’d say, “Hey Mr. Schultz. Instead of spending 50 million on a new logo, how about increasing my dividends?” And as a Starbucks customer, I’d say “I don’t care about your logo, but I’m pretty peeved about paying more for a latte so someone can play Mr. Designer. And while I’m complaining, bring back House Blend, which is never, ever, ever at my local Starbucks. Why call it House Blend if it is never in the House?”

I better quit here before they revoke my Starbucks Card.

What are your thoughts on this logo change.