"...But now Mr. Schultz is questioning whether Starbucks' drive for growth and efficiency has diluted that experience. In a blunt Feb. 14 memo, he warned executives that the chain may be commoditizing its brand and making itself more vulnerable to competition from other coffee shops and fast-food chains. The nearly 800-word memo questioned whether Starbucks' automatic espresso machines, new store designs and elimination of some in-store coffee grinding may have compromised the 'romance and theatre' of a visit...

"...In his memo, Mr. Schultz wrote that when in recent years the company switched to automatic espresso machines -- which have been used in some stores for at least five years and currently are in thousands of outlets -- 'we solved a major problem in terms of speed of service and efficiency. At the same time, we overlooked the fact that we would remove much of the romance and theatre.' Starbucks used to have all its baristas pull espresso shots by hand...

"'...While the current state of affairs for the most part is self induced, that has lead [sic] to competitors of all kinds, small and large coffee companies, fast food operators, and mom and pops, to position themselves in a way that creates awareness...and loyalty of people who previously have been Starbucks customers. This must be eradicated,' he wrote..."

Read the entire article from the Wall Street Journal.

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