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I don't know if the Starbucks example is quite the same as the band example. If anything, their focus on iced desserts shows that they know exactly what their audience wants and is paying for.

When I think about the band shirts, I think about this time an indie game dev youtuber did a full breakdown of their different revenue streams. They were a "full time indie gamedev", but the overwhelming majority of their income came from gamedev Udemy courses.

So really, they were an online course seller that used their gamedev youtube content to convince people to buy the courses.



The reality is that Starbucks is the world's biggest unregulated bank, with their claws in the real estate industry. Who got that way by selling the experience of hanging out in a convenient coffee shop.

Their business has run into trouble a couple of times because MBA types in the company lost sight of this, then focused on trying to sell drinks efficiently. Thereby diluting the brand and business.

If you've got 22 minutes, https://www.youtube.com/watch?v=Ym7YwFq8ZuM is a very informative walkthrough of the history and the business by the always funny youtuber, The Fat Electician. Highly recommended.


IMO, they, like many other companies, were doomed by the constant chase for growth. Once they had a large share of "have a milk-coffee drink in a nice lounge" market, growth slowed. But having a large market share, good margins and growth that is the same as population/gdp (+/-) is just not acceptable.

So they try to find a way to get more growth, even if it changes and perhaps kills what the business was.


There's more to the story than that.

Around 2000 the founder stepped away, and MBAs brought in automated machines. They were more efficient and consistent at making the drinks than the baristas, and business tanked. The founder came back in 2008, got rid of the machines, and brought the baristas back. Business took off again.

It really is the experience that is being sold.


In the context of AI automation I keep coming back to "cute Starbucks barista" as the archetypal automation-proof job. Because the job isn't producing the beverage, but the little moment of human interaction. (Especially these days, when not much of it remains!)

Same goes with supermarket checkout. I noticed many people intentionally take the line where the human scans your stuff. They enjoy it!

Unfortunately many zoomers do not appear to have been informed of this fact, and will give you a worse experience, "humanity wise", than the self-check out machine!

When you treat your job as robotic, aside from making the experience worse for all involved, you are also competing with actual robots, i.e. competing on speed, price and consistency, which is not a great place for a human to be.


I'm assuming you're talking about those Clover machines. They were really, really good and well designed IIRC. Trying to automate the barista with them; well, that's where they messed up!


They also went from semi-auto espresso machines to full auto


Yeah, I guess if you can't grow revenue, the next best thing is to grow profit by cutting costs (or try both at the same time).


Honestly, their espresso has always been undrinkable, IMO


That's implying your identity is what makes you money. It doesn't have to be.


to add to this, the iced dessert drinks are still caffeinated, so they still fill the purported role of a Starbucks.


Well, not the original role. That was to bring some americanized version of European/Italian coffee culture to the US. Serving espresso based drinks in a comfortable public cafe style setting. It was very popular for a long time. Busy cafes full of people, selling lots of drinks, opening new shops, etc.


> They were a "full time indie gamedev", but the overwhelming majority of their income came from gamedev Udemy courses.

Obligatory "in a gold rush, sell shovels" ;)




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