Last quarter, Starbucks pulled the plug on its olive oil-infused Oleato coffee line as part of a broader push to streamline the menu and impro1ve store operational efficiency.
Oleato was among Starbucks’ boldest and riskiest experiments in recent years. It was the brainchild of founder and then-CEO Howard Schultz, an assertive visionary. During a visit to the olive groves of Sicily, Schultz was inspired by the Mediterranean tradition of consuming a daily spoonful of olive oil. He envisioned merging this health practice with Starbucks’ coffee expertise, creating a unique fusion of wellness and indulgence.
Debuting in Italy in February 2023, Oleato expanded globally, offering lattes and cold brews infused with extra virgin olive oil, marketed as luxurious, innovative, and health-conscious. While some customers liked the smooth, velvety texture, many found the flavor odd or the concept hard to swallow. Scaling the product and educating consumers proved challenging, leaving many unsure of its benefits beyond novelty.
Oleato’s flop revealed the risks of niche innovation. Starbucks thrives on pushing boundaries, but not all bold ideas hit the mark. Smart innovation requires knowing when to nurture an idea and when to cut losses. Schultz’s vision of Oleato kept Starbucks daring, but disciplined decision-making is key to ensuring innovation remains a strength, not a liability.
The Oleato dud highlights the perils of leadership driven by unchecked conviction. Schultz’s love affair with Italian espresso bars during a visit to Milan sparked the creation of Starbucks. However, visionary leaders like Schultz often turn bold ideas into untouchable pet projects. Even a passing thought can rapidly evolve into a sweeping directive, leaving little room for dissent. In such environments, feedback is stifled, and ideas can quickly take on a life of their own.
There’s a well-known
Whenever someone uses that insidious phrase, “If it ain’t broke, don’t fix it,” I hear a message of
This year, I took two long trips across the Balkans, focusing on the region’s turbulent 20th-century history.
In 1981, Rangaswamy Srinivasan, a chemist at IBM Research, and his colleagues embarked on
Investor Warren Buffett’s wisdom isn’t just about making money. He’s known for his simple yet powerful life advice, often told through
Don’t look in the rearview mirror and expect that what led to past success can lead to new success. Human nature is such that we don’t like to contemplate letting go of the skills and behaviors that “got us here.” The arrogance of success is
In the 1970s and 1980s,
In the early days, founders