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Miss Starbucks fix? Rivals brew up ideas

Most stores closed for three hours Tuesday to train 135,000 workers.

SEATTLE - As caffeine junkies looking for their evening fix were locked out of Starbucks during the company's three-hour nationwide training session Tuesday, many didn't have to look farther than some competing cafe down the street for free or discounted cups of joe.

Dunkin' Donuts proclaimed it "wants to ensure that no coffee lover is denied a delicious espresso-based beverage" when it announced it was slashing the price of its small lattes, cappuccinos and other coffee drinks for 99 cents for most of the day.

Yet spokeswoman Michelle King demurred when asked if it was a competitive jab at Starbucks Corp.

"We are offering this promotion today because there is an opportunity to reach a large number of coffee drinkers, as well as provide our own loyal customers with a great deal," King said in an e-mail.

Caffe Vita Coffee Roasting Co., a small chain with four shops in Seattle, planned to give away free espresso drinks while the world's largest gourmet coffee retailer shut its doors.

While people who frequent Seattle's locally owned independents are often quick to trash Starbucks as a soulless corporate giant, Caffe Vita marketing manager Kate Perry insisted the giveaway wasn't a swipe at the top dog.

"It's just basically us celebrating how skilled our baristas are and the consistent flavor of our coffee," Perry said.

Nearly 7,100 company-operated U.S. Starbucks stores - all except the licensed shops in supermarkets, airports, malls, hotels and the like - closed at 5:30 p.m. local time so some 135,000 employees could go through about three hours of training.

Part back-to-basics tutorial, part pep rally, the teach-in aimed to reacquaint baristas with the art of pulling the perfect shot of espresso and steaming milk so the velvety foam that tops a latte has just the right thickness.

Starbucks wouldn't disclose how much revenue it stands to lose during the shutdown, but analysts say the financial impact will be negligible compared to charges the company will take as it closes about 100 poorly performing U.S. stores this year and pays severance to more than 200 corporate support staff it laid off last week.

Robert Toomey, an analyst with E.K. Riley Investments, said he didn't expect a backlash from customers getting turned away.

"It's a low-traffic time of day," he said. "The risk of ticking off customers is pretty minimal."

It makes sense to tackle the training in one fell swoop, and it shows the company - which has seen its stock slide about 50 percent since late 2006 - is committed to turning itself around, Toomey said.

"They know they've fallen short," Toomey said. "The quality of the product has deteriorated a bit over the last few years, and they know they've got to improve it."

[Last modified February 27, 2008, 00:07:16]