Free Starbucks WiFi Launching This Week

by: Dave Zatz June 01, 2008 | about stocks: SBUX    
Dave Zatz

Dave Zatz

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As many of you may know, I’m regular Starbucks (SBUX) patron. For me, “working from home” is a euphemism for plopping myself anywhere more comfortable than the soul-sucking florescent glow and countless unproductive meetings housed within the confines of a typical office environment.

I’ve been pestering one of my local haunt’s managers for details on when we’d finally see them implement free WiFi via AT&T (T) - both with anticipation and dread. I wouldn’t mind saving the $20/month spent on unlimited T-Mobile HotSpot access (backup for 3G card, especially in United airport terminals), but I wonder how much more crowded the already bursting-at-the-seams coffee shops will become.

Earlier Saturday the aforementioned manager approached me (unsolicited) and said the system was configured a few days ago and they’ve confirmed it works. I saw the back of the store memo and the manager says they’ve got signage behind the counter ready to go in conjunction with the June 3rd launch. Unfortunately, he wouldn’t let me take a peek and snap photos. My “contact” confirmed what Starbucks.com tells us:

Complimentary Wi-Fi for Starbucks customers When you register your Starbucks Card and use it at least once a month, you’ll receive two consecutive hours a day of complimentary Wi-Fi, courtesy of AT&T.

I didn’t think to ask if the on again, off again free iPhone WiFi would make a reappearance on Tuesday. Guess we’ll have to wait and see.

As to the business rationale, it’s fairly simple - Internet is inexpensive and sales are down:

Starbucks reported that earnings fell 28% in the quarter ended in March. Sales at U.S. cafés open at least a year declined. The shares, at just over $17, are down 57%.

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This article has 5 comments:

  •  
    Jun 01 08:27 PM
    why should you have to register a card and why only two hours a day. wouldn't most people who go into starbucks make some sort of purchase anyway. when i go to panera, i don't need to register a panera card and the amount of internet usage is unlimited. come on starbucks!!
    Reply | Link to Comment
  •  
    Jun 02 10:10 AM
    Totally agree jugoso, plenty of local coffee shops offer FREE internet!! Have you seen the price of the stock lately? Off the 52 week low but a long way to go back to highs.
    Reply | Link to Comment
  •  
    Jun 02 11:01 AM
    Great news and about time. Read my Jan 8 blog entry titled 'Welcome back Howard, we have a solution' for the other non-core merchandise at www.lompie.blogspot.co...
    Reply | Link to Comment
  •  
    Jun 03 10:54 AM
    A 2 hour limit because otherwise some dude will sit there at the table all day, keeping you from using it. It's a coffee shop, not his office. Whether you like it or not, it's a better business decision overall than Panera's...I'm going to get my card next time I'm in.
    Reply | Link to Comment
  •  
    Jun 03 05:47 PM
    When I'm on the road, I go to Panera or other coffee shops, not SBUX.
    Reply | Link to Comment
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