Hi Lynnelle -

If you read these comments, I'm curious about how you think Starbucks should respond to the insistent analyst and market pressure to increase in-store sales each year? As an investor, I'm not sure that I think this expectation or pressure is good for companies (or for our communities), but it clearly does exist. Should Starbuck ignore that expectation at their peril? If not, how should they increase sales at existing stores without adding products?

Thanks for your insights.

And where would McDonald's be now if they stuck with only hamburgers? If Starbucks sticks with only coffee it's a guarantee that they will be out of business within 5 years.

Its a case of what is the customer thinking?
At McDonalds its "I'm having coffee with my meal." at Starbucks its "What'll I have with my coffee?"
The focus is on two different things. If Starbucks really wants to compete with McDonalds they are going to have to revamp their entire image from Starbuck is where you go to get coffee to Starbucks is where you go for a meal. The problem is that the food industry is one of the most insanely competitive markets there is.
Starbucks is known for good coffee they should stick to their niche adding only coffee related stuff (chocolate cover espresso beans, mugs, dried coffee, coffee beans and novelties.) And a simple selection of pastries.

What it boils down to is: focus on what has the biggest margin or is the biggest draw.

Hello Lynnelle
I love the coffee at Starbucks and I gravitate to the stores that are in the bookstores, mainly Barnes and Nobles. I have also read Mr. Schultz' book and understand why he wanted to re-create an Italy like cafe experience in the U.S.
Unfortunately, Starbucks has not been able to re-create the friendly, social atmosphere found in Italian cafes. It still feels too cold and institutional. When I lived in a city that had a Peets coffee shop, I would go there sometimes for the relaxing music and attractive seating.
I think Starbucks has too many non coffee related food items. Why do they have expensive sandwiches on white bread? Why do they serve soup? When I think of soup and sandwiches, I do not think Starbucks. I love the cappucinos and lattes but the prices makes me choose the house coffee which is delicious and quite strong.
Since diabetes runs in my family all of the pastries are prohibitive. They are made with white flour and white sugar. Ugh!
Do they really need to open more stores?
I do think they need to re-focus and concentrate on what they do well. If it is not broken, don't fix it.

Thank you for letting me participate.