It was announced today that Starbucks will buy Coffee Equipment Co., manufacturer of the Clover. Here are links to the broader story:

http://online.wsj.com/article/SB120594882373049045.html

and

http://www.tradingmarkets.com/.site/new ... s/1221296/

They also announced that they are moving to a new automatic espresso machine (also discussed in the above stories). Some interesting/amusing/notable quotes:

"This gets us to a new gold standard for espresso equipment," Rob Grady, head of Starbucks' beverage development team, said in an interview. "It's like a high-performance Italian sports car."

* * *

The new machines also have a built-in mechanism to time the length of each shot, which tells baristas whether the coffee is being ground correctly. If it falls outside the ideal 18- to 23-second range, baristas can adjust the grind.

and

"With the Mastrena(TM) and the upgraded Verisimo, there is no doubt that our customers will enjoy the finest shots of espresso in the world," continued Schultz. "We have brought the art of espresso to the world, and by providing our baristas with the best training and tools, we will continue to define the industry standard."

skyryders90 wrote:It was announced today that Starbucks will buy Coffee Equipment Co., manufacturer of the Clover. Here are links to the broader story:

It would be interesting to find news releases from when they were buying La Marzocco espresso machines, most of which ended up in dump trucks to be taken metal recyclers when they decided that push-button machines made more economic sense than training talented baristas.

Should we stake out the scrap yards now for when the Clovers start arriving in piles?

So I guess this means that Clovers will no longer be available for purchase by other coffee shops?

brad

Maybe I missed something when reading the press release, but I don't think I saw anything about a commitment to serving coffee within a certain number of days of roasting. Granted, that might not be possible with that many stores, but as many of us have learned first-hand, their shiny new machines won't help un-stale the coffee.

What are others' thoughts on the acquisition of clover and the expansion that will follow? Will it lead to this company caring less about quality and more about quantity (or can they maintain both)?

Well, it's easy to be cynical about this strategy, but it does sound like Schultz is trying to emphasize quality coffee and espresso more than Starbucks has lately. The recent closure for three hours of training in milk steaming seems to be another effort to improve the quality of their drinks. Unfortunately, they'll never really get to the same level as a really good independent coffee shop until they ditch superautomatic machines and start using fresher, better roasted coffees.

There's absolutely no reason Starbucks couldn't produce better drinks if they make an effort to do so. It's not like they don't have the resources to keep fresh beans and semi-automatic machines in the shops, not to mention training their staff better. But I doubt that their efforts will ever go beyond some superficial changes. Just buying new Clovers and superauto machines won't make much difference if the beans are stale and overroasted and the baristas are poorly trained and unmotivated.

Beezer wrote:Well, it's easy to be cynical about this strategy, but it does sound like Schultz is trying to emphasize quality coffee and espresso more than Starbucks has lately.

Quite easy. The best machines in the world are still going to make mediocre coffee (on a good day) if fed stale beans. Close three hours to train people in an environment that features turnover of staff and machines hat will operate just fine by simply pushing a button and ignoring all the possible adjustments and tweaks that might improve the coffee. In light of the fact that a vast majority of their served drinks seem to be hot milkshakes, they have built a business on a customer base, the majority of which does not need nor knows what good coffee is.

I had a discussion with a commercial roaster over a similar subject: He wanted to implement training for his customers (commercial coffee shops for the most part) that would earn the baristas a custom gold pin certifying them. I told him it would not work because for the management of the shops to care about such things the customers would first have to care, and they generally don't. If it's fast, hot, and loaded with caffeine, fat, and sugar and tastes chocolaty or vanilla'y or caramelly or whatever, they are happy. Yes, there are some customers who get cups of black coffee there, and SOME may know good from bad... just some.

The Clover thing? What if all the clovers suddenly came with green trim and said, "Licensed by Starbucks" on them and they sold or leased them to whomever wanted them? Or if every *$$ store sported a sign, "Featuring the Starbucks Clover - The most advanced coffee machine in the world"? Just as good of an advertising approach as closing the stores for three hours. Look how long that ran in the media.

We have all said that it starts with the coffee. How many of us buy Starbucks coffee beans (regularly) to make espresso or anything else? Hands anyone? Pretty quiet in here.

Yes, it makes good business sense, and it's a fun show to watch a Clover in action, but they are just stuffing a sow's ear into a silk purse as far as I am concerned.

More power to them if they can make money at it. Me? I am interested in better coffee not better business models. Mmm.... I wonder. its there a http://www.home-MBA.com on the net? Nope... just checked.

it's not so much cynicism... If I had a $3000 BBQ out on the deck and set the time searching organic meat products, and learned the proper and best way to cook it, I would have the same attitude about MacDonalds at alt.funny.clown.meat. The difference is that if you walk into a MacDonalds you know what to expect and you get it.

"Don't hate me because I'm opinionated. There are lots of better reasons."

Here's the company press release re: "Starbucks Coffee Company to Acquire the Coffee Equipment Company and its Revolutionary Clover® Brewing System"

Here is their press release titled, "Starbucks Unveils New Strategic Initiatives To Transform and Innovate the Customer Experience".

From the second press release:

To enable customers to enjoy the freshest, high-quality cup of brewed coffee, stores also will brew smaller batches with a hold time of no more than 30 minutes. Licensed stores in the U.S., as well as Starbucks locations outside the U.S., also will move to a 30-minute hold time over the coming months.

Hmmm . . . Peet's has been doing "the 30-minute thing" forever!

In April, Starbucks will begin providing registered Starbucks Card holders these immediate, value-added benefits when they use their card at participating Starbucks stores in the United States and Canada . . .
• Complimentary Tall beverage of choice (including Frappuccino® blended beverages) with the purchase of one pound of whole bean coffee (on the same visit).

Again, Peet's has been doing this forever.

Gee, ya think Howard forgot what he learned at Peet's???

Oh, well, what the hell . . .

aindfan wrote:Maybe I missed something when reading the press release, but I don't think I saw anything about a commitment to serving coffee within a certain number of days of roasting.

I went ahead and listened to the meeting at http://investor.starbucks.com. One of the things he announced was a new coffee blend (he had a big portion of his "coffee team" spend a long time figuring out how to roast a better coffee). This blend is all Fair Trade, will be served every day in every shop, and will be shipped as whole beans (apparently the coffee they brew is shipped ground; I guess it doesn't matter how long ago your beans were roasted if you grind them a long time before you brew the coffee). Additionally, he alluded that the coffee will be "shipped fresh" and have a "roasted on" date. They even had a video of people trying the coffee before the meeting. Pretty much everyone said "It is very smooth." (pretty much the most boring description of a coffee I've ever heard)

I was impressed that he was willing to talk about this new coffee, because it basically highlights all of their shortcomings with the rest of their coffees.

I had to stop the recording of the meeting several times because I was so appalled by his statements. It's amazing that Starbucks is willing to say that they produce the best coffee in the world with no backup to that. However, my favorite part was the answer to an investor asking if Starbucks would consider "putting fancy designs in their lattes like they do in barista competitions". Schultz basically replied that Starbucks wouldn't do that because they generally have lines longer than the independent competition (not necessarily true) and people just want their coffee (though he did assure us that every partner can now produce a nice foam).

bsalinas wrote: Additionally, he alluded that the coffee will be "shipped fresh" and have a "roasted on" date.

Whoa, stop the presses! Starbuck's to have "roasted on" dates?? Did he say anything about roasting the beans lighter? Is Howard Schulz reading the forums or what?! "Roasted on" dates are definitely a step forward. There are some very good independent roasters that still do not do that. Maybe it will drive a change in the market...maybe not.

They even had a video of people trying the coffee before the meeting. Pretty much everyone said "It is very smooth." (pretty much the most boring description of a coffee I've ever heard)

Oh brother...the ubiquitous "smooth".

brad