Good System, Bad System: Starbucks

by

Inc. | April 2011

Starbucks' meticulous policy manual shows employees how to optimize profits. Too bad it undercuts basic customer service.

I pass six Starbucks (Nasdaq:Sbux) every morning on my walk to work.

Just to clarify, that's counting only the Starbucks that are actually on the west side of Eighth Avenue in midtown Manhattan. I think there are some branches on the east side, but that side remains terra incognita for me; for most New Yorkers, micro-optimizing the walk to work is a matter of habit, and I have no reason to cross the street. For all I know, the other side of Eighth Avenue consists of nothing but pachinko parlors and flea circuses. Wouldn't surprise me one bit.

One morning last week, I walked into a Starbucks on 58th Street at precisely the peak of the morning rush, to discover that this particular Starbucks had deployed a new type of employee. This employee wore a radio headset. Her main job was to go down the line of people waiting to order and ask them what they wanted in advance of their arriving at the cash register. There, they would be asked to repeat their order before paying and finally joining the line of customers waiting for their drinks to appear.

This premature order taking did not appear to improve the store's productivity. The cashiers still had to take the same number of orders, wait for the customers to fiddle with their purses for the correct change, and so forth. The coffee producers -- known theatrically in the trade as baristas -- still had to make the same number of drinks. The biggest benefit of the procedure, I thought, was that the barista got started on a drink a few seconds earlier, so people got their orders filled a little bit faster, even though the overall rate of output for the store was the same...


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