Unexpected Starbucks Apology Overflows Your Rewards Card With Delicious Credits
The Starbucks at the Joyce Kilmer rest stop along the Jersey Turnpike refused to honor Jason's 10% Starbucks gold card discount because they are a franchise location and not a corporate-owned store. Jason asked to cancel his drink order, but Starbucks had already brewed his drink and refused to refund his $6. Defeated, Jason called Starbucks corporate to share his disappointment. Their response provided a flavor shot of surprise.
So the other day, NJ Transit trains all went kaboom, so I wound up driving to my meeting in Jersey City. En route, I stopped at the Joyce Kilmer rest stop on the NJ Turnpike, and hit the Starbucks inside. Knowing that I'm on the turnpike, I accepted my fate of paying nearly $6 for my beverage. At least I don't do that often. But I digress.. The girls there happily accepted my sbux gold card (the card that gives you 10% off on each visit), deducting the cash from the card, but did not give me the 10% off. They explained that because they're a licensed store, not corporate owned, they don't have to honor the discount, and choose not to.
"No problem," I said, "just refund my money and keep your drink then." They refused, since they had already started making the drink. Somewhat put off, I put in a call to SBUX customer service line. My point was simple, they should require stores that don't honor the discount to post a sign saying they don't. That's all. No yelling, screaming, irate stuff, or anything like that. Just a simple request that they let people know what they're getting into in stores like that.
The CS rep, whose name unfortunately eludes me just now, decided that SBUX needed to "make me whole, and give me an experience nothing short of fantastic." I figured that meant I'd get a free drink coupon or something like that in the mail. I didn't really even feel like that was necessary. His offer, a $50 sbux card mailed to me, which I could transfer the balance from onto my gold card. Despite me trying to convince him that he really didn't need to do that, he insisted.
I'm floored. My goal was to spend 5 minutes on the phone with them and make them understand the need to let customers know what to expect in non-corp stores like the ones on the NJTP. Instead, they pulled out all the stops and went way beyond what they needed to.
$50? That's like, four free drinks! Nice work, Starbucks.
(Photo: James Callan)
Post a comment
Comments:
with the kind of money people fork over for those drinks... I think they could have given him more than 50 dollars and not hurt their revenues lol
Wow, based on what i have read about Sbux on this site, this is a welcome diversion from their usual MO. If more corporations were like this, then consumer confidence would skyrocket. Good job starbux. Enjoy your 4 free drinks.
Meh. I get the largest, most girly drinks they have available and it is usually under $5. They aren't forcing you to buy them.
What I see is Starbucks going above and beyond. They've sent me several free drink coupons before just for asking a question.
Wow! Lucky! He lost .60¢ and gained $50 in drinks.
All in all I've found Starbucks baristas friendly and helpful. But then I'm an addict. I love my dealers!
Anyway, I need to go and get my iced grande doubleshot. Then I'll be whole. BRB!
The $50 is a nice gesture. But did they give any indication that they'd consider what you actually asked for?
Good customer service! Though I'll admit to being a coffee addict, I have NEVER been to Starbucks. I refuse to pay that much for a cup of coffee and status is overrated.
@skizsrodt: I am at Starbucks about 3 times a week regularly and daily when I travel. I deal with no company with better service. Baristas and counter personnel are well-trained, considerate, and willing to correct mistakes - and never arguing with customer complaints.
@bananaboat: You know what? Here on Long Island, at least, a medium cup of coffee is the same price as Dunkin' Donuts, and 10 cents cheaper than 7-11.
People who are paying $6 for stuff are NOT BUYING A CUP OF COFFEE. They are buying weird milk-syrup-foam concoctions that are hideously over priced. However, I'm sick and tired of people here saying that Starbucks charges $4 for a cup of coffee. They don't.
I usually just buy a pound of beans there for $10. That $50 gift card would give me 10 weeks of coffee at half a pot a day, every day (2 weeks per pound). Even if you were buying a medium coffee every day at the Starbucks, you would get around 25-30 cups of coffee for $50. Not 4.
@bananaboat: the "coffee" is not the expensive item at Starbucks, at most its a 50c premium over the gas station/McDonalds ($1.75 vs $1.29). It's adding the ice, sugar syrup, milk, and artificial sweeteners that make your drink cost $5.
That is sweet they actually responded and gave you that credit. Remember, though, food and drink restaurants set a minimum of 60% profit on every item. It costs them VERY little to give you that much. So when you buy $50.00 with them they will be "losing" at most $20.00.
With brewed coffee I would say the profits are more like 90% profit. (I ran a restaurant once and tea, coffee are almost pure profit). So, my guess is for "giving" you $50.00 the cost to them was 5 bucks.
However, the value to them in goodwill and good publicity is high. Starbucks is the biggest winner here. You came in 2nd because of all the trouble they put you through.
@BathroomDuck: Who cares? Four free coffees, yo! Let the next guy who gets screwed on the turnpike have to deal with it!
Their coffee isn't really that expensive. If you stick with their brewed coffee, its not much more expensive that gas station coffee. When you start getting into the cappuccinos and lattes, that's when you start seeing the price bump.
I have had good service with starbucks as well. When they first started rolling out the rewards for registered starbucks cards, a lot of stores did not receive updated register software to apply the discount. I quick call to starbucks and the CSR applied a $10 credit to my account, much more than the 2 or 3 dollars I was entitled to.
Just yesterday at Starbucks I was given a free drink card because the barista said he'd taken too long to make my drink. Not only had I not said a word, I hadn't even noticed! That was a really nice customer service experience.
@BathroomDuck: After this exposure, I think the Joyce Kilmer rest stop has better honor the discount or at least put up a sign. They're going to lose some business otherwise.
BTW, do they sell a coffee that doesn't taste burnt?
They really didn't have to do that. especially if the store in question was a franchise. in my experience though, I've never contacted sbux corporate and NOT gotten something for free.
ah yes, Corporate Starbucks decided to do something good knowing they'll probably end up on THE CONSUMERIST if they didn't but only for them to eventually charge everyone else an extra fifty cent to a dollar now due to this so called "recession" and lack of mega-profit they are experiencing.
IDGI. Starbucks has excellent customer service.
People on this site complain about their coffee, but I've never heard anyone say anything about Starbucks CS.
Like the article states, the location was a franchise store. Franchises don't have to honor the gold cards or, really, any of the deals that corporate Starbucks stores (which are the vast majority) have. Franchises are, for the most part, located in places that Starbucks has no way of opening a corporate store in. The ones in Target, Barnes and Noble, airports, etc., are all franchises and they do their own thing for the most part. It's kinda stupid since it's wrecking SBux's brand.
@skizsrodt: Complain all you want about the prices, this is the status quo when it comes to customer service at SBUX. The licensed stores are an aberration they need to get rid of.
@evarga: You forget the labor. The barista cost is a huge portion of the froo-froo drink. Order an Americano or coffee and you won't pay more than $2
@antisane: Try that DD coffee without a ton of cream and sugar (black) and come back to me on the taste. Blech.
The fastest way for any owner to distroy their franchised or licensed store is to refuse to honor the chain's coupons and promotions! If you are not going to honor everything Starbuck's extends, then don't be a Starbucks... it's part of the deal.
A couple in my area opened two Quizno's a couple years ago and then decided they were going to stop taking any Quizno's coupons with BIG signs on the doors! The crowd dropped off fast and both Quizno's shut down in 6 months and still remain vacant. VERY BRIGHT!
@tjjex: What, you consider $1.30 for a cup of coffee too much? I'm floored by how much Starbucks hate there is on Consumerist. Just insane. It's like bitching that BMW, Audi and Lexus make cars that are too expensive even though they do sell competitively-priced entry-level cars, too.
What's the point of saying "their specialty drinks cost a lot of money"? How is that even useful criticism???
$6 for a cup of coffee?
That is Turnpike robbery!
@hedonia: Thank you hedonia and evarga for putting it so perfectly. The people who complain about Starbucks are either self-rightous spendthrifts who've never actually set foot in a Starbucks or are just being trolls. Frankly, having Starbucks in the WCOTY competition is stupid.
Give it up, sheeple, it's not a bad company for fx sake.
But they never acknowledged his original issue. So this will just happen again and again.
@undefined: @bananaboat: Heaping scorn on a place you admit you've never actually been to. And a sideways dig at people who do go there, implying they're just interested in "status." Just ignorant.
Jesus Christo! Who would pay 6 bucks for a cup of coffee? Do you get special "favors" with that? I guess thats why I like Dunkins.
I think the Consumerist snark about "that's 4 cups of coffee" at the end of the article was uncalled for. A consumer complained and was treated far above and beyond what was necessary to compensate him and the conclusion of the article attempts to undermine the compensation.
If your coverage of good service is like this, you remove some of the incentive to treat customers well and make it appear as if the corporations simply cannot win no matter what they do. This would seem to act in opposition to one of the purposes of a site like the Consumerist.
@Frank Murphy: A regular cup of coffee does not cost $6 at Starbucks. The customer obviously bought a designer drink, but didn't feel the detailed account of his order was important. He was right.
Starbucks, cigarettes and credit card debt are 3 needless things that will hurt your financial future.
@savdavid: no, I would say it would be a legitimate $50.. it is, afterall, $50 they are not getting in the end.
Even if they only "lose" $20 at the end of the day, they are also losing that $30 in profit.
@savdavid: Regardless of who "wins," he still came out way ahead. He turned a $.60 complaint into a $50 giftcard. Of course the corporation is going to win, provided only that he continues to patronize starbux after his 50 is gone. There is nothing wrong with a company trying to develop customer brand loyalty and positive association with their name. It's corporate darwinism, good relations = stay in business, bad relations = circuit city (among others)
Considering how many people will get to hear this story one way or another, that $50 gesture will be worth 100 times that in publicity. I'm not even a SBUX fan but I do know that honest and decent customer service these days is pure gold.
When did we get so used to shitty service that stories like this started meaning so much?
(I still support Coffee People)
Wow, congrads!! I have to commend starbucks for this. That is way above what I was expecting to happen. No matter if you hate starbucks prices, you should admit that that was great customer service.
@Barney_The Plug_ Frank: And the price bump is just about entirely from the work involved (ie, an entire person to pull the shot, do whatever magic they do with steam for the milk, etc.)
@Shoelace:
Sure, go with any espresso based drink. Their frappes and americano don't taste burnt, IMHO.
$50 versus a tiny dinky discount?
Something ain't adding up correctly. Somebody get confused along the turnpike? BurntDogHair (aka Starbucks) trying to earn some PR glory?
$50 is what you get when BurntDogHair gives you a togo carry box of beverages and fills the cups with ice water because they think you and your 3 friends would not notice the difference.
$50 is what you get the when the BurntDogHair employee takes your $20 and refuses to give you change because they farkedup and gave your change to somebody else.
In other words $50 is a little overkill. So what is really happening here?
Favors for $6? You must patronize the really inexpensive working girls. They get $7 in my neighborhood.
@skizsrodt: Four stories about bad experiences on this site are not representative of the billions of total Starbucks transactions.
This is the kind of thing that Starbucks does all the time. I can't tell you the times I've received an unexpected, unasked for drink coupon because I've either 1. waited too long, or 2. something was wrong with the drink (for example, they accidentally put whip cream when I asked for none) which they then remake anyways.
I still don't get why Starbucks was one of the entries in the worst company contest. Their customer service is always excellent.
@absentmindedjwc: they just got that profit back from an unknown number of folks who read this, decided maybe starbucks is ok after all, and went there when they normally wouldn't have
hahaha, four free drinks, only if they're on sale!