What happened to Starbucks’ "third place" magic? With Joe Pine and Louis-Etienne Dubois Artwork

The CX Iconoclast

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The CX Iconoclast

What happened to Starbucks’ "third place" magic? With Joe Pine and Louis-Etienne Dubois

February 10, 2025 • OCX Cognition

In this episode, Richard Owen speaks with Joe Pine and Dr. Louis-Etienne Dubois about Starbucks’ journey of rediscovering its core identity as a "third place" — a welcoming environment between work and home. They explore how Starbucks' focus on retail efficiency and loss of employee-customer connection led to its decline, while highlighting the brand’s unique strengths that competitors haven’t been able to replicate. With the new CEO aiming to return to the company’s roots, there’s optimism for Starbucks to reclaim its position in the market.

The discussion emphasizes the vital role employees play in creating memorable customer experiences. Once renowned for treating employees well, Starbucks has seen unionization efforts arise as a sign of declining satisfaction. The speakers stress that investing in employees is essential to reviving the human connections that define Starbucks’ brand.

Finally, they tackle the role of AI in business, warning against over-automation. While AI can optimize operations and augment employee abilities, misapplying technology risks stripping away the human touch that makes Starbucks unique. The key lesson? Authenticity, employee experience, and strategic technology use are critical for businesses aiming to create lasting customer loyalty and meaningful experiences.

Joseph Pine is an internationally acclaimed author, speaker, and management advisor. He co-authored the groundbreaking book The Experience Economy with James H. Gilmore, which introduced the idea that businesses should engage customers through memorable experiences rather than just providing goods and services.

Pine's work has significantly influenced how companies approach customer engagement and value creation. He is a co-founder of Strategic Horizons LLP, a thinking studio dedicated to helping businesses conceive and design innovative experiences. Pine is also a frequent keynote speaker and has written several other influential books on mass customization and customer experiences.

Dr. Louis-Etienne Dubois is an Associate Professor of creative industries management at Toronto Metropolitan University’s School of Creative Industries. He holds a Ph.D. (Management) and a M.Sc. (Organizational Development) from HEC Montreal, as well as a Doctorate from MINES ParisTech.

His research activities focus on business models and innovative management practices in creative organizations. Over the years, Dr. Dubois has also consulted with a range of organizations in advertising, arts and culture, video games, sports and entertainment, and aerospace, as well as delivered executive education training.

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