Starbucks is Stupid: The Boiled Peanuts Sales Model - Ministry & Business Marketing, Media, and Strategy Blog

Seth Godin, a marketing guru with an actual working brain, recently shared a funny story about a hobby shop near his home. It could've been the coolest little model train retailer in the land. But the owners are quickly settling into general store mediocrity. According to their billboard, model train fans are also interested in coffee and lottery tickets.

My local version of the sell-everything, lost in the shuffle store, actually lists boiled peanuts as one of their staples. Did I miss the Jimmy Carter comeback tour? Has half of Georgia migrated south to the Tampa metro area? Nope. But just in case you get a hankering, rest assured that boiled peanuts are always available there. Pig's feet and hummus distributors are reported to be in talks with the store as we speak...

Over the last few years, Starbucks has fallen victim to this boiled peanuts sales model. Instead of focusing on their core offering--coffee--and building loyalty & customer affinity around the fruit of the bean, Starbucks has diluted their brand to the extreme.

SBUX now sells breakfast sandwiches which overpower that classic fresh ground coffee smell and clutters their stores with a literal boatload of overpriced CDs, DVDs, teddy bears, candy, bottled smoothies, and even picnic sets. Did I mention they also sell all the requisite coffee/hot drink crap--including coffee mugs, coffee pots, press pots big and small, travel mugs, tea sets, and tea bags?!?

Exit CEO Jim Donald. Enter Starbucks founder Howard Schultz.

Like every good former Starbucks drone, I know that back in the 1980s Schultz saw the coffee house revolution coming and bought out his Starbucks partners, who wanted to keep their stores a simple coffee and tea wholesaler. The rest is capitalist history...

Upon his return in January, Schultz confessed that Starbucks had strayed from its coffee core and promised a quick return thereto (and to the profitability that comes with it). That's easier said than done, but Schultz recently showed his java resolve by closing all North American Starbucks stores for three hours, for the sole purpose of indoctrinating, er, educating baristas about the wonders of the bean. I'll keep you posted on their progress...

In the meantime, think about your ministry or business and how to avoid the boiled peanuts model.

For ministries, your job is to bring glory to God and tell everyone about the good news of Jesus Christ. That is, that Jesus was God and that He lived, died, and rose again, just as He promised. And you're to encourage folks to walk with Him who is not just a mere good teacher or the ticket to your best life now. Jesus Christ is truly, to steal from the late great Francis Schaeffer, the God who is there. If you're not proclaiming as much, Scripture says you are missing the mark.

Likewise you business owners/execs should learn from Starbucks' mistakes and streamline your product mix. And cut ventures that detract or distract from your core competencies.

One last story...A friend of mine is an extremely successful architect in a major U.S. city. His main office is located in an uber-cool, turn-of-the-century brick building that once served as a train depot. In fact, box car tracks still run past the loading dock. Very cool, indeed.

One day I asked my friend if he owned the building. Though he certainly had the money to buy it, he said no. When I asked why he didn't own the building, my friend put it bluntly: he isn't in the real estate business.

So I ask you: what business are you in? Are you in the coffee business? Then why are you diluting your brand by making movies about spelling bee champions? Are you in the model train business? Then why are you advertising lotto tickets?

Think about why you're in business and hone your offerings accordingly. Scripture says a double-minded man is unstable in all his ways. It's just as true for business as it is for ministry and walking with Christ.