Starbucks' Push for Efficiency

Starbucks (SBUX) is trying to help its staff members be more efficient. According to a recent Wall Street Journal article, they are using old fashioned time and motion studies. A barista makes a latte, while someone watches with a stopwatch. Early results are positive, but some baristas worry that this push for efficiency will take away from the coffee-crafting experience.

The Starbucks experience is a part of the charm of the chain, but don't forget the coffee, or that many of us don't want to wait in line. The Starbucks experience is not about watching someone fumble to find the whipped cream. If the barista can save five seconds by having ingredients located in the right place, then burn off one or two of those seconds with a smile or flourish, then efficiency and the Starbucks experience are both served.

I had the pleasure of spending two hours with one of the top Internet marketing experts. He says that everyone who survives that business is continually doing "A B testing." That is, they have their "A" ad, which has proved successful. But they are also showing a "B" ad, trying out new ideas. The B ad may only get 5 percent of the impressions, but it keeps the A ad on its toes. When a B ad surpasses the old A ad, then it gets promoted. Do the marketers slap each others' butts and call it a day? Of course not--they have to right a new "B" ad.

If there's anything weird about Starbucks jumping into this efficiency thing it's this: haven't they been doing this continuously for years? Jeez, it's basic Total Quality Management. This is a basic element of the trial and error economy: continually test your procedures, looking for room for improvement.

When I was young, I thought that a boss should tell employees what is expected of them, then leave them alone to work out the details themselves. Boy, was I ever stupid. I learned the error of my ways racing my boat. I sail a small boat with two other people, and I used to explain the desired results and wait for my crew to figure it out. And waited. And waited. The new, hard ass me is different. I specify exactly how each step is to be done. No changes, no suggestions, no variation. We always do the jibe this way. After a crew member has mastered the task and gotten some experience, I am very open to suggestion. When we're out practicing, we can try another way and see how it works. We watch our competitors, read articles, and try to improve. But first, we master the old ways.

One final thought, as I'm writing this in a Starbucks at the O'Hare airport. I walked up at a slack time, and there were four employees without a customer. Talk about a bad environment for customer service. They didn't want to stop their conversation for me. True, it was only five seconds or so before they greeted me, but to be a customer who is ignored for any length of time is insulting. Every business needs to keep their employees busy. "My" Starbucks often has a line in the morning, but every employee is focused on getting the orders in, made, and served. I'd rather wait in line and see the staff hustling to get to me, than to have no line and be ignored.

Comments

[mni:]

to see how they make espresso and cappucinos at starbucks is painful. They should go to Italy and see how quickly the baristas flip these drinks, with the same machines. Also, why don't they have a cashier do all the money transactions and the baristas just do the coffees? Whicj, incidentally, would be a lot more hygienic. Finally, I think there are far too many options that make no sense, such as a cappuccino with skim milk, or 1% milk or whatever.

Aug 07 09:10 AM

[abec:]

On the east coast, the convenience store chain Wawa uses a touchscreen for customers to place their very customized deli sandwich orders. It is "damn efficient". At the minimum, Starbucks should be testing this optional system for customers, which would prevent lines almost entirely and would streamline behind-the-counter operations. Starbucks mostly has repeat customers. Once their customers and employees got used to this system, everything would be faster and better, for everyone. Payment systems in the kiosk would need to be vetted, and Wawa still makes customers pay at the register (albeit maybe that is for different reasons, such as customers desiring other convenience products outside the deli, such as a pack of smokes or a serve beverage.) Starbucks seems to be more concerned with their employees time than with their customer's time, and thus they largely missed the point of "just in time". In the Deming model of "just in time", production management improves the system for everyone - - faster turnaround improves profits for the company and results in higher satisfaction (often in the form of better quality) for the customers. And is it me, or didn't I just read or learn sometime last year that Starbucks was encouraging its employees to engage their customers in conversation. I asked a regional manager out of disbelief, and he confirmed it. So, there I am standing in line for two minutes while the Starbucks employee tries to vainly make idle banter with the customer in front of me, who couldn't care less. Starbucks says they pay attention to their customers, but really, they don't pay careful attention enough.

Aug 07 09:35 AM

[abec:]

I meant.... "self serve beverage"


On Aug 07 09:35 AM abec wrote:

> On the east coast, the convenience store chain Wawa uses a touchscreen
> for customers to place their very customized deli sandwich orders.
> It is "damn efficient". At the minimum, Starbucks should be testing
> this optional system for customers, which would prevent lines almost
> entirely and would streamline behind-the-counter operations. Starbucks
> mostly has repeat customers. Once their customers and employees
> got used to this system, everything would be faster and better, for
> everyone. Payment systems in the kiosk would need to be vetted,
> and Wawa still makes customers pay at the register (albeit maybe
> that is for different reasons, such as customers desiring other convenience
> products outside the deli, such as a pack of smokes or a serve beverage.)
> Starbucks seems to be more concerned with their employees time than
> with their customer's time, and thus they largely missed the point
> of "just in time". In the Deming model of "just in time", production
> management improves the system for everyone - - faster turnaround
> improves profits for the company and results in higher satisfaction
> (often in the form of better quality) for the customers. And is
> it me, or didn't I just read or learn sometime last year that Starbucks
> was encouraging its employees to engage their customers in conversation.
> I asked a regional manager out of disbelief, and he confirmed it.
> So, there I am standing in line for two minutes while the Starbucks
> employee tries to vainly make idle banter with the customer in front
> of me, who couldn't care less. Starbucks says they pay attention
> to their customers, but really, they don't pay careful attention
> enough.

Aug 07 09:38 AM

[WhoisJohnGalt:]

As described in a recent WSJ journal, some of their adjustments make a lot of sense that should not take away from their so-called "cultural" experience. Ingredients and machines will supposedly be situated now to be next to those pertinent to making a specific drink. There's been way too many times where I've seen four-five Starbucks baristas bumping into each other moving from one end to the other in a 30-sq foot space. Not only does it look dumb, but it wastes time.

Aug 07 09:53 AM

[Art Trader:]

spelling - "write at new "B" ad."

"they have to right a new "B" ad."

Aug 07 11:48 AM

[Art Trader:]

Whoops! and grammar mistake for me "write A new "B" ad." , not AT.

Aug 07 11:50 AM

[wholelattelady:]

the touch screen idea from WaWa kills the interaction that made SBUX what it is today... that being said, the growth and the amount of acceptance for mediocre in the service provided accross the chain is kind of doing the same thing, for me at least. limiting the options as is done in Italy is also a contradiction to what built the giant green machine - "SBUX speak", i.e. half-caff, two-pump, skim mocha is what it is because they drove the idea that you could get a drink ANY way you wanted it, and it would be the same, every time. I used to look for the iconic sign and than willingly drop my $4 on the counter no matter where my travels took me. I knew that I would get a consistent beverage and would be pleased with the service. that all ended about two and half years ago when the service started to tank and the consistency wained. as a person in the coffee industry I've always known I was hyper critical but now seeing that the rest of the world has picked up on what I was seeing a while back makes me realize that critical or not, when I'm putting down the cash I still get to have my moment when my expectations should be filled.

Aug 07 01:02 PM

[abec:]

Without dismissing the importance of customer interaction, and boy, how did I use to enjoy it when a Starbucks team member would know me and my drink before I stepped up to the counter, I don't believe that nice experience ever drove the business. Also, both customer interaction and touchscreens are not mutually exclusive - - a customer would still have interaction paying for food and drink and picking it up from the counter. Also, using the touch screen would be an OPTION for customers. likely used only when there was lines. Furthermore, many people are scared of touch screens, others don't prefer them, and still others, like my wife, happen to enjoy the line at Starbucks. But if 25-50% of the Starbucks customers went for it, then it would make a big difference for everyone, especially when there was lines. The barristas could focus on making drinks, instead of repeating orders and writing on cups. It doesn't matter whether you agree with me or with wholelattelady - - we both can be right. The point is to build it and test it. Starbucks needs to get some Google-like religion: Build it, test it and follow the numbers.

Aug 07 03:02 PM

[Tony Petroski:]

Dr. Bill. Nice article.

"I'd rather wait in line and see the staff hustling to get to me, than to have no line and be ignored."

You are so right. The Marketing Director job is for you.

Greetings to you and yours.

Aug 07 10:19 PM

[edk:]

one person taking the money and straight coffeees for those of us who drink it black would work and a barista for the other drinks make sense (much cleaner). however, a touch screeen kills what makes Starbucks, Starbucks: the staff knowing you and pulling your coffee drink as you approach. Perhaps the issue isn't the speed but the quality of the people filling the cups.
Be careful what we wish for, we may not like what we get

Aug 17 02:17 PM