Starbucks: Delivering Customer Service

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Background Case
P.1  According to their data, Starbucks are not always meeting our customers’ expectations in the area of customer satisfaction. They came up with a plan to invest an additional $40 million annually in the company’s 4,500 stores, which would allow each store to add the equivalent of 20 hours of labor a week. The idea is to improve speed of service and thereby increase customer satisfaction.
P.1  Day, Starbucks’ senior vice president of Administration in North America, said, “Do we believe what our customers are telling us about what constitutes ‘excellent’ customer service? And if we deliver it, what will the impact be on our sales and profitability?”
P.2 
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(About 500 stores even carried a selection of sandwiches and salads.)
P.3  Beverages accounted for the largest percentage of sales in these stores (77%).
P.3-4  Starbucks also sold coffee products through non-company-operated retail channels; these so called "Specialty Operations" accounted for 15% of net revenues. About 27% of these revenues came from North American food-service accounts, that is, sales of whole-bean and ground coffees to hotels, airlines, restaurants, and the like. Another 18% carne from domestic retail store licenses that, in North America, were only granted when there was no other way to achieve access to desirable retail space (e.g., in airports). The remaining 55% of specialty revenues carne from a variety of sources, including international licensed stores, grocery stores and warehouse clubs (Kraft Foods handled marketing and distribution for Starbucks in this channel), and online and mail-order sales. Starbucks also had a joint venture with Pepsi-Cola to distribute bottled Frappucino beverages in North America, as well as a partnership with Dreyer 's Grand Ice Cream to develop and distribute a line of premium ice creams.
P.4  Our philosophy is we want to reach customers where they work, travel, shop, and dine. In order to do this, we sometimes have to establish relationships with third parties that share our values and commitment to quality. This is a particularly effective way to reach newcomers with
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