Scent and memory affect business in the real world

Beginning in late 2007, Starbucks experienced the impact of scent in a big way. In an effort to keep up with industry players such as McDonalds and Dunkin’ Donuts, Starbucks introduced heated breakfast sandwiches to their menu. In theory, this was a positive change. It gave customers more options and allowed Starbucks to compete in the “fast food” breakfast scene. But there was one big problem…the smell.

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When cooked, the heated breakfast sandwiches produced a scent that completely overpowered the signature Starbucks coffee aroma. When the coffee scent went away, so did some of Starbucks’ profits. According to Forbes, U.S. sales were down by 1 percent and traffic declined by 3 percent for the second quarter in a row. Not only did customers love that trademark smell, studies have shown that the smell of coffee alone has its benefits. A Stevens Institute of Technology study found a positive correlation between the scent of coffee and cognitive performance.

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Since that time, Starbucks has made quite a few changes to bring back the coffee scent that brought customers in. Employees are not to wear strongly-scented perfumes or deodorants so as not to interfere with the coffee smell. They also brew fresh coffee on a regular basis to maintain circulation of the scent. As for those sandwiches, Starbucks re-launched them with a few key changes. By improving the quality of the ingredients and lowering the baking temperature (to avoid burning cheese), they were able to have the best of both worlds…breakfast sandwiches and the coffee smell.