Enough of you have asked my opinion on the recent news from the Starbuck founder, Howard Schultz that I should make a blog entry about the state of affairs. Seems that after Starbucks lost out in a somewhat questionable taste test v. McDonald's Premium Coffee, the e-mail boxes at the HQ were peppered with questions from worried store partners about it. Howard made sure to support the workers and the brand and vented his frustration at being unfairly criticized to the entire corporation through an internally distributed letter. I was asked why a letter? Why not e-mail? Well whenever Howard or the CEO, Jim Donald want to make sure everyone sees it they send a letter that can be printed and posted in the back rooms. Not every employee has e-mail or voicemail, so the letter is the best way to get the word out to everyone. I am sure they understand the risk of it going public, so they are pretty careful not to word things too inflammatory. Just a few days ago another Howard memo made it to the blogosphere. In an internal memo directed to his senior staff, he critically looked at past decisions and how they may have negatively affected the brand. That memo had only a handful of addressees, but it somehow got leaked. Go figure. Here is my take and interpretation as I "read between the lines."
Howard spoke about the brand "losing its soul." I gotta tell you, I agree with him! It is one of the reasons I left the organization. However, some of you have told me that you don't see it, that business looks good, it is still crowded, the drinks still delicious, the stores beautifully decorated, etc. Yea, that is the pretty facade, but the core might still be hollow and empty. The best indication for me is through the slack and lifeless eyes of the Barista. That is how you want to measure the soul of this organization. Even the new hires might not feel the same love that was evident just a mere 3 years ago. Howard talked about a focus on the numbers, on losing out on quality, on losing our touch with the heritage...preach it, Howard! You have a bunch of professional managers running your "business" like it was only about money. That is the soul that is being snuffed out. It has never just been about the money...it was always about the coffee and the people. Poof! I can feel the soul suffocating. If you look at it from the Barista's perspective, that is the essence of the experience that is being lost. Love and appreciation for the "beans"...both coffee and human variety. The consumer has already turned the experience into a personal one...MY drink, MY store, MY experience. With that focus on their personal interaction with their warm cup, they aren't interested in much else...the smell, sounds, and sights of the atmosphere. They have no reason to look around, they only need to rush in and out.
As a former partner, I have sat through meeting after meeting where "strategies" to reduce the cost of store design, equipment and operations were being developed. As a mid level manager designated to innovate, it seemed impossible to keep adding new beverages to new stores that were coming online without the right level of resources, let alone old stores that had been neglected and in need of updating. For example, if the peak hours in a store approached 300 drinks per hour (and going up), then why were we designing and building stores that could only max out at 200 drinks per hour? The new stores were coming online already obsolete! Well they don't tell that to the new manager, so she or he then pushes the Baristas to make drinks with an under resourced store! The poor Baristas work themselves silly to make the number of drinks needed, resorting to clever tricks and solutions to keep up. In the meantime some management doofus gets a huge bonus because they were able to keep the per store building cost down. And that is just one example of many similar strategies. Another example is something that is mentioned in the letter...the use of automated espresso makers and the diminishing quality of espresso. I gotta say again, there is something there. I used to manage the sensory team, and there is a "significant difference" (meaning quantifiable) in the quality of espresso shots pulled from a La Marzocco manual machine v. an automated one-button machine. But it comes down to cost again. To pull the perfect shot (18-23 seconds), you might go through two portafilters worth of coffee...so your yield numbers might be as high as 40% loss. With the automated units, you push a button and get a shot, and you just use it, so yield nunbers are much, much higher. It is also easier to train newbies on an automated machine v. the labor intensive, but higher quality manual one. So where does taste come back into play? All development efforts were placed on designing a new automated machine that rivaled a manual one in flavor and consistency. They got close, but no cigar. It does look reminiscent of a manual machine, but it has no need for artistry and the artisan's touch.
Many of you have heard me say that the Supply Chain group at Starbucks will be the group to bring down the giant. If any group will kill the brand, it is this group. Their single-minded focus on costs, their burn rate through good vendors, single management approach (fear and intimidation) and disregard for the mission and values of the company will be the downfall of Starbucks. People that have attempted to keep the passion and quality and dare to speak out are quickly dismissed and replaced. Hard working, effective managers are given more and more responsibility until they crack and either quit, or transfer. Ineffective managers are kept around, sapping positive energy and creating more work for the effective. No executive is brave enough to call it like it is, and burn down the altar.
Howard, bring the torch! And ignore all that rubbish about how your perqs are unreasonable...crap, you started the company. The way you created shareholder value, you are entitled to a little cushy travel and protection. As a stockholder, I am glad to pay it...you deserve it! But please, freakin' burn down SCCO!
Okay, off to the east coast to deliver a presentation and then to celebrate some family birthdays...My Dad, and both sisters are March babies, so we will celebrate while I am in town. We always need just a minimal excuse to have a party.
Chow for now!
Monday, February 26, 2007
Saturday, February 24, 2007
Airline Rage
Okay, after the Jet Blue fiasco of the past week, I was hoping to have an event free travel this week as I headed to the east coast. I was doing well until the very last leg of my week-long travel. My return flight home was horrible. It was if Continental Airlines had never flown a commercial flight ever! It was a comedy of errors, too inane to be mad about...something one just throws their hands up in the air about. Let me set it up for you all...
I had to be in New Jersey for meetings on Friday, so I had our sales team in the NY/NJ area set up meetings for me with clients and perspectives for the rest of that week...Tuesday through Friday...no sense wasting the trip just for one set of meetings. They did a great job of setting me up...meetings on Tues in NYC, Wed in Connecticut, Thur in Philadelphia, and Fri in NJ. I think the week went great. We may be signing one of the prospects and renewing a couple of others on the bubble. One client is even considering having me fly out every quarter to do more face-to-face meetings...at their expense!
Like I said earlier, I had trouble free travel until the very last flight home. After a full week of awesome meetings, I was in a great mood checking in for my flight home that afternoon. I got a great seat on the plane, and everything looked good to go...until I looked outside and saw that the baggage handlers had stopped loading the plane and started unloading the baggage. Uh-oh was my first thought. I asked the gate agent what was going on, and he said, "nothing, we are going out on time." I am no dummy, I learn more about the status of flights by watching the ground crew v. listening to the announcements. Literally 5 minutes later the gate agent makes an announcement that the plane had a slight maintenance issue that would only take 5 minutes to fix. He would keep us informed as progress was made. That was almost the last time we heard from him. The electronic board over the gate counter is what kept us informed. The "on time" sign changed to a 30 minute delay, then a 2 hour delay. I knew that plane wasn't going anywhere...they NEVER unload the baggage unless they can't fix the plane. Finally gate agent guy gets on and tells us that the plane is being pulled out of service and that they are doing everything in their power to find us a new plane. Another 90 minute delay. A plane does finally pull to the gate, but it is a different size than the previous...so they take another 30 min. to change seat assignments. Guess what? There aren't enough first class seats for all the passengers that paid for it. They already bumped 6 upgraders (boy were they hot!), and were looking for 3 first class volunteers to take a coach seat. Good luck, I said. We were finally ready to board 41/2 hours late. As they loaded the first class cabin and then the elite status passengers, they had to stop loading because the boarding pass reader wouldn't work, and they had to hand check everyone. So instead of loading in 20 minutes, it took them over an hour. Then the multiple seat assignments caused an uproar. People were already pissed, now they had to fight for seats. After the flight attendants and gate agents finally get everyone a seat, they close the doors for us to take off. But air traffic control decided to add to our misery. We sat on the taxi way for a solid hour waiting to take off. The crew did their best to keep us happy, with free drinks, headsets, and cheerful language. The pilots even tried to get us home by flying a bit faster than normal. But people weren't responding very well. I think there were 3 or 4 fake petitions being passed around on the plane calling for Passenger's Rights...ha!
As we approached Seattle, I thought my ordeal was finally over...what started as an early afternoon flight home ended up 5 hours delayed and then I watched a young woman in first class (damn those people!) faint and collapse. Uh-oh, guess what? Yup, an announcement from the head flight attendant. "Ladies and gentleman, can I please have your attention. We have experienced a medical emergency on board this flight, and we will need everyone's cooperation. A young woman has taken ill, fainted and bumped her head. We have stabilized her condition, but when we land we need all of you to stay seated until the EMT's are able to remove her from the flight. Please be patient. Thank you." So, not only have we been delayed on the front end of the flight for over 4 hours, but now we won't be able to deplane after we land! Thankfully she was not hurt too badly, so after just a few minutes they had her off the plane and we were able to escape.
Like I said, a comedy of errors, no information, no communication, and no love for paying customers. Continental Airlines, you just don't seem to care enough for your consumers to show them a little respect and dignity. Mistake #1: please start inspecting the planes right after they land for mechanical problems and not right before boarding. Mistake #2: we can handle the truth! We don't have to be lied to, or have information kept from us. Mistake #3: please, just look like you are hustling to get the plane ready to board. Standing around and goofing off just doesn't look right to the frustrated flyers waiting to get home.
That Passenger's Bill of Rights is looking pretty good to me right about now. Well, I am off to the east coast again starting Tues. Expect fewer posts. Hopefully I will have a more fun post next time.
Chow!
I had to be in New Jersey for meetings on Friday, so I had our sales team in the NY/NJ area set up meetings for me with clients and perspectives for the rest of that week...Tuesday through Friday...no sense wasting the trip just for one set of meetings. They did a great job of setting me up...meetings on Tues in NYC, Wed in Connecticut, Thur in Philadelphia, and Fri in NJ. I think the week went great. We may be signing one of the prospects and renewing a couple of others on the bubble. One client is even considering having me fly out every quarter to do more face-to-face meetings...at their expense!
Like I said earlier, I had trouble free travel until the very last flight home. After a full week of awesome meetings, I was in a great mood checking in for my flight home that afternoon. I got a great seat on the plane, and everything looked good to go...until I looked outside and saw that the baggage handlers had stopped loading the plane and started unloading the baggage. Uh-oh was my first thought. I asked the gate agent what was going on, and he said, "nothing, we are going out on time." I am no dummy, I learn more about the status of flights by watching the ground crew v. listening to the announcements. Literally 5 minutes later the gate agent makes an announcement that the plane had a slight maintenance issue that would only take 5 minutes to fix. He would keep us informed as progress was made. That was almost the last time we heard from him. The electronic board over the gate counter is what kept us informed. The "on time" sign changed to a 30 minute delay, then a 2 hour delay. I knew that plane wasn't going anywhere...they NEVER unload the baggage unless they can't fix the plane. Finally gate agent guy gets on and tells us that the plane is being pulled out of service and that they are doing everything in their power to find us a new plane. Another 90 minute delay. A plane does finally pull to the gate, but it is a different size than the previous...so they take another 30 min. to change seat assignments. Guess what? There aren't enough first class seats for all the passengers that paid for it. They already bumped 6 upgraders (boy were they hot!), and were looking for 3 first class volunteers to take a coach seat. Good luck, I said. We were finally ready to board 41/2 hours late. As they loaded the first class cabin and then the elite status passengers, they had to stop loading because the boarding pass reader wouldn't work, and they had to hand check everyone. So instead of loading in 20 minutes, it took them over an hour. Then the multiple seat assignments caused an uproar. People were already pissed, now they had to fight for seats. After the flight attendants and gate agents finally get everyone a seat, they close the doors for us to take off. But air traffic control decided to add to our misery. We sat on the taxi way for a solid hour waiting to take off. The crew did their best to keep us happy, with free drinks, headsets, and cheerful language. The pilots even tried to get us home by flying a bit faster than normal. But people weren't responding very well. I think there were 3 or 4 fake petitions being passed around on the plane calling for Passenger's Rights...ha!
As we approached Seattle, I thought my ordeal was finally over...what started as an early afternoon flight home ended up 5 hours delayed and then I watched a young woman in first class (damn those people!) faint and collapse. Uh-oh, guess what? Yup, an announcement from the head flight attendant. "Ladies and gentleman, can I please have your attention. We have experienced a medical emergency on board this flight, and we will need everyone's cooperation. A young woman has taken ill, fainted and bumped her head. We have stabilized her condition, but when we land we need all of you to stay seated until the EMT's are able to remove her from the flight. Please be patient. Thank you." So, not only have we been delayed on the front end of the flight for over 4 hours, but now we won't be able to deplane after we land! Thankfully she was not hurt too badly, so after just a few minutes they had her off the plane and we were able to escape.
Like I said, a comedy of errors, no information, no communication, and no love for paying customers. Continental Airlines, you just don't seem to care enough for your consumers to show them a little respect and dignity. Mistake #1: please start inspecting the planes right after they land for mechanical problems and not right before boarding. Mistake #2: we can handle the truth! We don't have to be lied to, or have information kept from us. Mistake #3: please, just look like you are hustling to get the plane ready to board. Standing around and goofing off just doesn't look right to the frustrated flyers waiting to get home.
That Passenger's Bill of Rights is looking pretty good to me right about now. Well, I am off to the east coast again starting Tues. Expect fewer posts. Hopefully I will have a more fun post next time.
Chow!
Sunday, February 18, 2007
Grey Hair
Okay, now I can feel the grey hairs growing out of my head. All it took was to get a nice birthday phone call from my son at college. Jeff is a freshman at THE Ohio State University, and is a fairly long way from home. His mother and I worry about how he is doing, if he is missing us, eating enough, sleeping enough, making friends, doing his laundry the right way, and on and on. I am sure my folks did this type of worrying about me too, but it didn't seem like it at the time. Jeff is probably the same way...anyway, he called home to wish me a Happy Birthday and we got to talking about his first Spring Break coming up. He has decided that he will spend it with some friends in Daytona Beach, FL. He signed up to go down there (driving all night) with a group from "Real Life", a Christian organization. He has been fairly involved with them since school started. He said they are going to introduce themselves to other kids on the beach, sharing their faith a little while soaking up some sun. We have all seen these groups of kids, singing at sunrise, praying in a big group, and then splitting up into smaller teams to play frisbee and catch with strangers hoping to spark a conversation. His other choice was heading to New Orleans to volunteer with the clean-up efforts. Both worthy endeavors, but I think the sun and sand of Daytona won out. But that isn't what is greying me prematurely...
He had also just decided to back out of his involvement with a fraternity, Tau Kappa Epsilon (Teeks). Turns out the hazing was getting a little out of hand. He didn't think it was worth it, and even changed his mind about the organization. He went through the Rush process filled with excitement about the fraternity, and now after experiencing a little too much hazing, he had second thoughts. I am glad he is willing to talk to me about it. Besides the typical "slavery" duties they are forced to do for the more senior brothers, it seems they had the pledges clean the Schottenstein Fieldhouse after a big basketball game and left them there late at night without rides. He got a little pissed that he and a few others were left behind without any warning. The final straw was when they forced the pledges (underage) to drink alcohol until they puked. I think that is what turned him 180 degrees. He is making some man-sized decisions and I am really proud of him, but at the same time I am worrying for him. I am glad he has the sense to understand when he is being put into bad situations. He called the frat to let them know he was pulling his membership.
Don't you just wish your kids could just benefit from your wisdom and not have to endure tough lessons in life? Isn't this the same question all parents throughout history have asked?
I will be on the road for the next couple of weeks traveling east. I will try to keep this updated, but forgive me if I don't.
Chow for now! (Yes, Irene I spelled it this way on purpose!)
He had also just decided to back out of his involvement with a fraternity, Tau Kappa Epsilon (Teeks). Turns out the hazing was getting a little out of hand. He didn't think it was worth it, and even changed his mind about the organization. He went through the Rush process filled with excitement about the fraternity, and now after experiencing a little too much hazing, he had second thoughts. I am glad he is willing to talk to me about it. Besides the typical "slavery" duties they are forced to do for the more senior brothers, it seems they had the pledges clean the Schottenstein Fieldhouse after a big basketball game and left them there late at night without rides. He got a little pissed that he and a few others were left behind without any warning. The final straw was when they forced the pledges (underage) to drink alcohol until they puked. I think that is what turned him 180 degrees. He is making some man-sized decisions and I am really proud of him, but at the same time I am worrying for him. I am glad he has the sense to understand when he is being put into bad situations. He called the frat to let them know he was pulling his membership.
Don't you just wish your kids could just benefit from your wisdom and not have to endure tough lessons in life? Isn't this the same question all parents throughout history have asked?
I will be on the road for the next couple of weeks traveling east. I will try to keep this updated, but forgive me if I don't.
Chow for now! (Yes, Irene I spelled it this way on purpose!)
Friday, February 16, 2007
Driving Miss Melanie
Well, I promised some posts on my teen daughter's driving exploits. I was hoping for death-defying experiences, but I am happy to announce that she is a pretty good driver. She has been behind the wheel for a couple of weeks now, but it has been my wife's role to do the early driving lessons. I think it is because I am a yeller. So after a HS band concert I asked her to drive us all home...at first she protested because she had a long dress and heels on, but I think she thought about it a little and then changed her mind. She needs the practice and she knows it. She has the typical new driver problems: she overshoots her turns, oversteers and then over corrects, and her parking is attrocious! I made her get out twice to see where she was in relation to the curb. But I have to admit she is very safe and aware of what is going on around her. She is very different than her older brother. He would be extremely quiet, where she is quite the chatterbox. So we had a nice conversation while she chauffered me around town. Besides the regular discussion of boys, girls and the relational issues they have at that age, we happened on a subject that really made me think.
We talked about slang words that were popular when I was her age v. what is popular now. She asked me why "cool" is still, well, cool. Sometimes she is extremely insightful...I have another story that I will post another time. Anyway we talked about how it still fits in our language today because it describes a contemporary feeling or setting so aptly. And I think it always will. I asked her if "groovy" could enjoy a resurgence. She laughed at me and said I was nuts. I felt challenged and said that I would make "groovy" come back. But the more we talked about it, it just doesn't seem to fit any contemporary scenes or feelings. I doubt I will be able to resurrect that fun word. I tried it a few times, and got her to snicker at me, and say, "Dad, you are so embarassing!" You know, it just didn't feel right to say it. What happened to groovy settings? Can't anything be groovy anymore? I hate to put that word away, but there isn't a place for it anymore.
A friend wished me Happy Birthday and asked if I felt old at 46. I told him it was all relative...when I think about it without any other references, I don't feel too old at 46. But when I think about it in a different set of circumstances, like having a 19 year old college kid, I do feel older. What's worse is when I get news that other people's kids are graduating from college, getting jobs, and having children of their own...that is what I mean by relative.
Hey, it is Chinese New Year this weekend. The year of the Boar! Be extra generous to those that help and support you, be a big tipper and good fortune will return back to you.
Chow!
We talked about slang words that were popular when I was her age v. what is popular now. She asked me why "cool" is still, well, cool. Sometimes she is extremely insightful...I have another story that I will post another time. Anyway we talked about how it still fits in our language today because it describes a contemporary feeling or setting so aptly. And I think it always will. I asked her if "groovy" could enjoy a resurgence. She laughed at me and said I was nuts. I felt challenged and said that I would make "groovy" come back. But the more we talked about it, it just doesn't seem to fit any contemporary scenes or feelings. I doubt I will be able to resurrect that fun word. I tried it a few times, and got her to snicker at me, and say, "Dad, you are so embarassing!" You know, it just didn't feel right to say it. What happened to groovy settings? Can't anything be groovy anymore? I hate to put that word away, but there isn't a place for it anymore.
A friend wished me Happy Birthday and asked if I felt old at 46. I told him it was all relative...when I think about it without any other references, I don't feel too old at 46. But when I think about it in a different set of circumstances, like having a 19 year old college kid, I do feel older. What's worse is when I get news that other people's kids are graduating from college, getting jobs, and having children of their own...that is what I mean by relative.
Hey, it is Chinese New Year this weekend. The year of the Boar! Be extra generous to those that help and support you, be a big tipper and good fortune will return back to you.
Chow!
Tuesday, February 13, 2007
"Natural Meat"
I had a great discussion with a client today about all the latest label declarations and associated trends facing consumers today. It was interesting as we probed the term "all-natural" in regards to cold cuts in the grocery store. Wouldn't all meat be considered natural? What in the world would companies be doing to that meat to make it unnatural? So that got me to thinking about it and a whole bunch of other stuff. I'll start with our discussion and then talk about transparency and trust being a must for today's consumers...
I guess there are two perspectives at play here: 1) the perspective from the brand or companies' POV...basically, "what will the government allow me to say?". This is the perspective that regulations and policy dictate our labeling sensibilities. 2) the perspective of the consumer who basically thinks that if it was living, and at some point, breathing, how could it be anything but natural? Maybe we marketers (or is it us marketers? I think we...) aren't giving enough focus on the consumer's point of view. Maybe the right term isn't "all-natural" ham, but "naturally preserved and cured" ham. That is closer to what consumers want anyway...they are looking for transparency. If companies are transparent about where they source their ingredients, how they process them, and even how they treat their suppliers and employees, then consumers can give a little trust in that company or brand. So, add a little more descriptive language to your label to really help consumers decide.
I think the perfect "best practice" to look to is Whole Foods. If you think about the absolute trust that their consumers show that brand, it is amazing. I have heard it presented in this fashion: when consumers cross the threshold of the stores they give up any thought of worry about buying or consuming any of the products in that store. They trust Whole Foods to deliver safe, healthy and fair products. Transparency is the key word that builds that value of trust. Check out their website...you can look at any of their policies, practices and philosophies. That feeling of trust is rarely displayed towards any other brands by consumers. If you look at any other big box grocery chains, consumers will still have their guard up, will look suspiciously at labels, ingredient statements and crinkle their noses at questionable brands and products.
The trust factor will allow Whole Foods to expand into almost any adjacent space...their move into foodservice is a natural. Their consumers are already taking food home to eat, why not just enjoy it in a warm and trendy environment with excellent tableside service and wine! What's next for this brand? Why not a pharmacy (partner with Elephant Pharmacy...now there's an idea!)?
Okay, you raise a great point! Not everyone can afford to spend $100 on one small sack of groceries. So, who will advocate for the value consumer? Trader Joe's does a fair job here, but there just aren't enough stores yet...Walmart owns this consumer, but can they pull off the transparency bit? Not when they have soooo many other issues to deal with first.
So no answers, but interesting dialogue...
I am working on a good sign-out, so let me know if you like this one...
Chow!
I guess there are two perspectives at play here: 1) the perspective from the brand or companies' POV...basically, "what will the government allow me to say?". This is the perspective that regulations and policy dictate our labeling sensibilities. 2) the perspective of the consumer who basically thinks that if it was living, and at some point, breathing, how could it be anything but natural? Maybe we marketers (or is it us marketers? I think we...) aren't giving enough focus on the consumer's point of view. Maybe the right term isn't "all-natural" ham, but "naturally preserved and cured" ham. That is closer to what consumers want anyway...they are looking for transparency. If companies are transparent about where they source their ingredients, how they process them, and even how they treat their suppliers and employees, then consumers can give a little trust in that company or brand. So, add a little more descriptive language to your label to really help consumers decide.
I think the perfect "best practice" to look to is Whole Foods. If you think about the absolute trust that their consumers show that brand, it is amazing. I have heard it presented in this fashion: when consumers cross the threshold of the stores they give up any thought of worry about buying or consuming any of the products in that store. They trust Whole Foods to deliver safe, healthy and fair products. Transparency is the key word that builds that value of trust. Check out their website...you can look at any of their policies, practices and philosophies. That feeling of trust is rarely displayed towards any other brands by consumers. If you look at any other big box grocery chains, consumers will still have their guard up, will look suspiciously at labels, ingredient statements and crinkle their noses at questionable brands and products.
The trust factor will allow Whole Foods to expand into almost any adjacent space...their move into foodservice is a natural. Their consumers are already taking food home to eat, why not just enjoy it in a warm and trendy environment with excellent tableside service and wine! What's next for this brand? Why not a pharmacy (partner with Elephant Pharmacy...now there's an idea!)?
Okay, you raise a great point! Not everyone can afford to spend $100 on one small sack of groceries. So, who will advocate for the value consumer? Trader Joe's does a fair job here, but there just aren't enough stores yet...Walmart owns this consumer, but can they pull off the transparency bit? Not when they have soooo many other issues to deal with first.
So no answers, but interesting dialogue...
I am working on a good sign-out, so let me know if you like this one...
Chow!
Sunday, February 11, 2007
Welcome to the world of bloggers...
My wife just asked me why a boomer aged male all of the sudden wants to put himself out there to draw criticism from strangers (she said perfect, but who knows anyone that's perfect?). I had to think about that one for a few moments...hmmm, why do I want to do this? The answer came pretty quickly. I think it has to do mainly with frustration. My frustration that I don't have the President of the US asking my advice, that food companies I advise don't always want to hear what they need to hear, that my years of life's experiences might be ignored by my kids, and that my voice get a chance. That's the serious reason...the other reason is that it sounded fun.
So, welcome to my blog...where I get to share my opinions, advice, and experiences with perfect strangers.
I will be writing routinely on things that are currently important to me: work (in the Food and Beverage space), family (marriage-23 years, father of two teenagers), finances (flipping houses), and miscellaneous thoughts that inspire me to contribute.
A little bit about me, so you can decide if this page is worth a second look:
I currently work for a very cool company called Iconoculture, Inc. If you have heard of Macrotrends, then in some small way you have heard of us. Basically Iconoculture is a small start-up that has discovered an awesome niche in the world of trending. That niche is understanding how basic human values (happiness, fear, control) drive consumer behavior. We watch what consumers do (v. what they say they do), gather insights, and share those with our clients. Understanding that leads to all kinds of opportunities for companies, brands and anyone interested in triggering behavior in consumers.
Sounds very psycho, but it is simply about observing basic human behavior. I get to work with some of the smartest people I have ever met, and I get to work in an industry that I love...the food and beverage space. I have spent 23 years developing new and innovative products for a lot of big and small brands, but always on the technical side...Research and Development. Okay, no pocket protector jokes, but yes, white lab coat territory. My MBA in International Marketing was gathering dust, so I jumped from a very safe, comfortable corporate job (R&D Director at Starbucks) to this new opportunity.
I have been happily married for over 23 years, and have two above average teens. My eldest is a boy who just started his freshman year at Ohio State University. My youngest is a girl who is a sophomore in HS. She just started driver's education and will provide much inspiration for future posts, I am sure.
Besides my real job, my wife and I have also started to rehab homes in our neighborhood for resale. Yes, "flipping" houses for fun and profit. I do learn a ton about human behavior from this adventure. Our goal is to help pay our son's out of state tuition, so we use terms like, "Well that one should net us 3 semesters of tuition", instead of "% return". We don't do this because we have to, we do it because we really enjoy it. There is something very satisfying about taking one's imagination and sweat equity, applying it to a piece of crap, and turning it into a cute, functioning dream home.
So, that is where I will draw inspiration to fill a blog...my interesting work, my above average family, and my hobby.
Okay, so some real serious blogging:
I saw a week or so ago an article about McDonald's investing in Drive Thrus in China, with its first one opening two weeks ago in Shanghai, and another dozen or so to follow rapidly. While exciting for McDonald's and all middle class Chinese, I think it symbolizes something very dangerous going on in Asia. Don't get me wrong, I am all for the democratization and growth of the Asian countries, I am just afraid of what we are truly exporting from the US to our eagerly awaiting protege countries (China and India in particular). Almost every corporation I deal with is extremely interested in selling every Chinese consumer just one of something. Hey, with a population of around 3 billion, it looks like a great business strategy. India adds another couple of billion, so the opportunity seems boundless.
Here's the problem as I see it...as we teach our proteges about consumerism, and believe me that is what we are teaching them, we are taking them through consumerism the same way we learned it, and we aren't teaching them the improved model yet...the way we are doing it now. For example, we are just now learning (maybe it is admitting) that there are causes for our obese population. Not that it is just about fast food and laziness, er "convenience", but we are learning that consuming larger than necessary portions of fast food and not getting enough exercise (due to our dependence on our automobiles) might not be the best thing to do for our bodies. So in the US our fast food companies are changing menus, giving away pedometers and exercise DVDs, helping with nutritional counseling, etc. That is the new fast food nation, the one based on all this learning. Our city and state governments are asking for transparency in nutritional information, even our schools are getting more vocal in this area. Yet we investors cheer when we see our brands make small victories in that monstrous market in China. We are taking the fast food industry of the 80's and 90's over there, not the new, better, healthier industry of today. We are exporting the wrong values.
It used to be that America exported values like: opportunity, freedom, loyalty, honesty, integrity, honor, generosity, and equality. If I really looked hard at what messages we are sending our global proteges, what we are "mentoring" these eager countries, I see values based on consumerism: greed, acquisition, envy, selfishness, entitlement, and indifference. No wonder we have become such a target.
So, welcome to my blog...where I get to share my opinions, advice, and experiences with perfect strangers.
I will be writing routinely on things that are currently important to me: work (in the Food and Beverage space), family (marriage-23 years, father of two teenagers), finances (flipping houses), and miscellaneous thoughts that inspire me to contribute.
A little bit about me, so you can decide if this page is worth a second look:
I currently work for a very cool company called Iconoculture, Inc. If you have heard of Macrotrends, then in some small way you have heard of us. Basically Iconoculture is a small start-up that has discovered an awesome niche in the world of trending. That niche is understanding how basic human values (happiness, fear, control) drive consumer behavior. We watch what consumers do (v. what they say they do), gather insights, and share those with our clients. Understanding that leads to all kinds of opportunities for companies, brands and anyone interested in triggering behavior in consumers.
Sounds very psycho, but it is simply about observing basic human behavior. I get to work with some of the smartest people I have ever met, and I get to work in an industry that I love...the food and beverage space. I have spent 23 years developing new and innovative products for a lot of big and small brands, but always on the technical side...Research and Development. Okay, no pocket protector jokes, but yes, white lab coat territory. My MBA in International Marketing was gathering dust, so I jumped from a very safe, comfortable corporate job (R&D Director at Starbucks) to this new opportunity.
I have been happily married for over 23 years, and have two above average teens. My eldest is a boy who just started his freshman year at Ohio State University. My youngest is a girl who is a sophomore in HS. She just started driver's education and will provide much inspiration for future posts, I am sure.
Besides my real job, my wife and I have also started to rehab homes in our neighborhood for resale. Yes, "flipping" houses for fun and profit. I do learn a ton about human behavior from this adventure. Our goal is to help pay our son's out of state tuition, so we use terms like, "Well that one should net us 3 semesters of tuition", instead of "% return". We don't do this because we have to, we do it because we really enjoy it. There is something very satisfying about taking one's imagination and sweat equity, applying it to a piece of crap, and turning it into a cute, functioning dream home.
So, that is where I will draw inspiration to fill a blog...my interesting work, my above average family, and my hobby.
Okay, so some real serious blogging:
I saw a week or so ago an article about McDonald's investing in Drive Thrus in China, with its first one opening two weeks ago in Shanghai, and another dozen or so to follow rapidly. While exciting for McDonald's and all middle class Chinese, I think it symbolizes something very dangerous going on in Asia. Don't get me wrong, I am all for the democratization and growth of the Asian countries, I am just afraid of what we are truly exporting from the US to our eagerly awaiting protege countries (China and India in particular). Almost every corporation I deal with is extremely interested in selling every Chinese consumer just one of something. Hey, with a population of around 3 billion, it looks like a great business strategy. India adds another couple of billion, so the opportunity seems boundless.
Here's the problem as I see it...as we teach our proteges about consumerism, and believe me that is what we are teaching them, we are taking them through consumerism the same way we learned it, and we aren't teaching them the improved model yet...the way we are doing it now. For example, we are just now learning (maybe it is admitting) that there are causes for our obese population. Not that it is just about fast food and laziness, er "convenience", but we are learning that consuming larger than necessary portions of fast food and not getting enough exercise (due to our dependence on our automobiles) might not be the best thing to do for our bodies. So in the US our fast food companies are changing menus, giving away pedometers and exercise DVDs, helping with nutritional counseling, etc. That is the new fast food nation, the one based on all this learning. Our city and state governments are asking for transparency in nutritional information, even our schools are getting more vocal in this area. Yet we investors cheer when we see our brands make small victories in that monstrous market in China. We are taking the fast food industry of the 80's and 90's over there, not the new, better, healthier industry of today. We are exporting the wrong values.
It used to be that America exported values like: opportunity, freedom, loyalty, honesty, integrity, honor, generosity, and equality. If I really looked hard at what messages we are sending our global proteges, what we are "mentoring" these eager countries, I see values based on consumerism: greed, acquisition, envy, selfishness, entitlement, and indifference. No wonder we have become such a target.
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