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Weekly UpdatesStarbuck's allure was that it was a hip café out of Seattle that served great coffee and espresso beverages. Coffee from home and 7-Eleven were not special enough anymore. Then Starbucks started to grow at an amazing pace. When you couldn't drive to your office without passing 10 Starbucks cafés and minivans were lined up in their drive-thru's, it started to become less like a European café and more like fast food. It wasn't special anymore. Starbucks was having an identity crisis; is it special to be here, or do I feel like I'm having a fast food latte? The little green mermaid started to lose her touch.
McDonald's, on the other hand, is all about convenience. We accept and, in most cases, appreciate that there is a McDonald's on every corner. McDonald's is clearly focused on convenience and its product is cheap and fast. It works. By growing too much, too fast, Starbucks traded in its fidelity and gained convenience. Unfortunately for Starbucks, the company forgot what people really wanted it for: the total cafe experience.
Starbucks is just one example of a business that has grown too much, too fast. Business is a balance. How many units can you franchise without losing what people are coming to you for? How many units can you open and still provide a quality product? In a time where the pressure is on to grow fast, slow and steady might sometimes win the race.
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