STARBUCKS; DELIVERING CUSTOMER SATISFACTION

Introduction
Starbucks has clear core values towards providing quality coffee, the best service and
atmosphere. It has enjoyed great success since it was founded 30 years ago. Serious concerns
regarding company problem meeting customers expectations. With the additional labor dollars,
this could make the partners day to day tasks less stressful; improve their ability to focus on the
speed of service, their level of friendliness and the cleanliness of the store. To make the
argument stronger and to put it in financial terms: The $40 million spread over 4500 stores
would equate to $8888 per store per year, or $171 per week. Currently the hourly employee
labor poor are about $3240 for a store running about $15400 per week.

Problems and issues
Cannibalization
Speed of Service
Customer Satisfaction is on Decline
Lost Sight of Customer
Long Wait Times

Core problem
This study aims to identify possible solutions on how the company could resolve the gaps
that exist between customer expectations and what Starbucks delivers.
In order to meet customer satisfaction and gain customer loyalty.

Decision criteria
To determine if Days $40 million proposal could solve Starbucks' dilemma regarding
increasing customer satisfaction
Since the assumption is that speed of service is the number one driver for satisfaction and
that the additional labor will provide the increase of speed of service.
Emphasis on INCREASING THE COMPANYS SALES.
Alternative 1
Starbucks make the $40 million investment in labor in the stores
Alternative 2
Invest more money in automated espresso machines
Alternative 3
Educate poor partners to utilize their soft skills to treat their customer as valuable.
Alternate 4
Improve the speed of service to less than 3 minutes by increase labor hours
Alternate 5
Establish the loyalty program
Enforce it; create value, capture value and sustain value

Final solution
After analyzing the current situation of Starbucks, the best course of action they could
consider doing is to educate poor partners to utilize their soft skills