While they respect much of what Starbucks has done, independents have learned not to fear it, reports Melissa Allison. "These small, nimble competitors don't struggle with the high overhead costs and glaring global scrutiny that besets Starbucks. Unlike independents up against a big retailer like Wal-Mart, they often thrive when Starbucks is nearby." Not only in Seattle, but around the country. || Starbucks no longer gives small coffee shops the jitters

The hedge fund Maverick Capital reports that it's dumped 12.5 million Starbucks shares. Other major investors that recently unloaded their shares were Nelson Peltz's Trian Partners (more than 800,000 shares), and Fidelity Management & Research (5.5 million). It begs the question: Why are some bigger investors cashing out, and do they see new trouble brewing for Starbucks? || Starbucks: Big Investors' Divorce Grounds

Extra TV has just come out with a list of celebs' favorite Starbucks drinks, which is largely based on fairly old STARBUCKS GOSSIP posts. Here's your third opportunity (we did this in 2005 and early 2007) to tell us about the famous people you've seen at Starbucks and what they ordered. || ExtraTV.com: Order Starbucks Like a Celeb!

Here's what we're told: "The new breakfast offerings will be similar to breakfast hot pockets as well as new wraps. Also only the bacon, turkey bacon, and sausage sandwiches will survive but just until the new program takes off. || VIVANNO shows promise with new flavors and versions that will be down the road. || More marketing promotions and deals like $2 receipt focusing on brewed coffee. || Also we will have a Thanksgiving blend since we are delaying holiday launch until right before Thanksgiving. Usually holiday launches right in the beginning of November." || Discuss this dispatch or anything else Starbucks-related in the OPEN THREAD.

You can bet Howard Schultz & Co. are relieved. Nelson Peltz is known for pressuring companies to raise profitability by doing things that, well, they'd rather not do. (Read the Reuters story)

Once an obscure skill practiced by a handful of baristas, latte art is invading the home, reports the Wall Street Journal. A spokeswoman for Starbucks says "foam art" isn't part of the company's barista-training process. "I don't think we want to legislate creativity," she says. But some Starbucks baristas do compete in latte-art competitions, she adds. (Read the Wall Street Journal story)

Caribou Coffee fared the worst among the coffee chains, cutting several ounces from every drink ordered by Milwaukee investigative reporters. "Starbucks offers the most honest cup of joe in town but on average still fell short of the advertised amount," says this story. On average, the four chains -- Caribou, Starbucks, Alterra, and Stone Creek Coffee (the last two are Wisconsin chains) -- skimmed 2.3 ounces from 20-ounce coffee drinks. (Read the Milwaukee Journal Sentinel story)

Only 6% polled by Rasmussen Reports disagreed that the coffee was priced too high. Along with the perception of high prices, only 38% of the adults polled gave Starbucks a favorable rating, while 27% had an unfavorable view of the chain. About one-third of the respondents had no opinion. (Read the Star Tribune story)

The line-up: Protein latte; Signature hot chocolate (a sort of thin Chantico); "Perfect oatmeal" with nuts, berries and brown sugar; "Protein pack" featuring peanut butter, hard boiled egg, and mini bagel; multi-grain roll with almond butter; and a fruit and nut bar. Discuss this or anything else Starbucks-related in the weekend open thread.

Fresno Bee columnist Mike Osegueda writes: "Don't let a rough economic year, slumping profits and that closure list fool you -- it's a good bet that Starbucks execs aren't starving. So why are all these local people rallying a big national corporation that's just taking your money back up to Seattle?" Where's the support for local businesses that have had to close? he asks. "Instead of jumping on the Save Our Starbucks bandwagon, Fresno needs to embrace what's unique to us." (Read the Fresno Bee column)

Officer Barbara Nevers was suspended for more than 15 months after being found guilty of demanding free coffee at five different Starbucks stores. In some instances, she started yelling and showed her weapon after being denied free drinks. (Read the Chicago Sun-Times article)

> "She was vehement about getting the free pastries," says a Starbucks employee
 

The stock is definitely beat up -- there's no arguing that, acknowledges Tim Brown. But he hasn't given up on the company because...
* Shutting 600 stores in the U.S. should help keep some costs down while filling the stores that remain open, he says.
* "The company is looking to take advantage of its brand recognition overseas, which makes a lot of sense to me."
* "Starbucks has great brand recognition and customer loyalty here in the U.S., so I don't see its competitors encroaching substantially on the Starbucks' clientele." (Read TheStreet.com story)

That's the inside of my cup, which until this afternoon was brown and gross and no doubt disgusted baristas at Starbucks and indie coffee shops I frequent. A barista at Metropolis Coffee in Chicago took one look at the inside of my cup today and politely said: "Do you mind if I clean this?" Go ahead, I said. In 90 seconds, it was a different cup. "What did you use?" URNEX, he said, handing me a sample packet. That, I thought, was legendary service. What about your gross-cup customers? Feel free to tattle on your those with the grossest cups. Do you/did you have the courage to confront them about this? ("Ma'am, you've obviously spent thousands to get your teeth whitened; now how about doing something about that brown cup!")

"Perhaps some of the critics are right, and a cup of Starbucks coffee really is a metaphor for Bush/Hitler-Iraq-Amerika-Oil-Halliburton (insert your grievance here) angst," writes Michael Scammell. "Then again maybe some people need to calm down, get a life and have a look at their own small-minded prejudices. After all, to paraphrase Freud, perhaps sometimes a coffee is just that, only a coffee." (Read the Australia-based Courier-Mail story)

Starbucks says it will now offer its morning customers any iced grande beverage for $2 after 2 p.m. The promotion was previously only offered in Seattle, Chicago and Miami. "I think we've kind of hit the nail on the head," says Brad Stevens, vice president of customer relationship management. "It's easy for baristas to implement and it's easy for customers to understand." (Read the Associated Press story)

James Alling will get a lump sum payment equal to 12 months of base salary -- which is $600,000 -- under a separation and release agreement. Starbucks also said in an SEC filing that the former Starbucks Coffee International president will get 12 months of outplacement services up to a maximum of $14,000. In return, he agreed to not work for a competing business and promised confidentiality about his time at Starbucks. Alling last week was replaced by COO Martin Coles.  (Read the Dow Jones Newswires story)

>Earlier: Ex-Starbucks president Donald receives $1.25 million severance
 

Sure, it's easy to sit back and criticize a CEO for his/her actions, but try coming up with solutions that satisfy everyone. Put yourself in the CEO chair and give us three (or more) things that should be done now to put Starbucks on track -- moves that will increase revenue while keeping customers and workers happy. Give us your ideas, or discuss anything self Starbucks-related in the open thread.

Howard Schultz adds, though, that they're "painful and difficult" now. He says closing the Australian stores was necessary because the market had high rent and expensive labor. Back in the US, he wants to do more with the Starbucks Card. "Unlike a fast-food restaurant or a quick-service restaurant, we don't want to get into the game of happy meals and deep discounts," he says. "The Starbucks Card is the perfect place" to build on the company's brand in new ways." (Read the Seattle Times story) || More quotes from Schultz)

Starbucks reports a net loss of $6.7 million for the latest quarter, compared with a net profit of $158.3 million for the quarter a year ago. It was the cost of closing stores that resulted in a penny per share loss. The company earned 18 cents per share when the costs for restructuring and closing stores are excluded. (It earned 21 cents a share a year ago.) (Read the Associated Press story || Read the press release)

Enjoy the rest of the summer (while living on "savings") and then start job-hunting? Or update the resume first thing in the morning and comb the classifieds? Maybe do some "healing" with a voodoo doll? How do you see your post-Starbucks life?