In the face of a tough economy, a weak stock price, and formidable competition from lower cost coffee sellers like Dunkin' Donuts and McDonald's (NYSE: MCD), The Wall Street Journal reports (subscription required) that Starbucks (NASDAQ: SBUX) is taking steps to bring down its labor costs.
The idea is to have fewer workers working more hours, with an eye toward making more of the baristas full-time, working 32 hours or more per week.
The Industrial Workers of the World, a labor union that has been trying to make inroads at the chain, complains that the new system does not guarantee that workers will actually receive those hours. The idea is that cost savings will come from lower employee turnover and reduced training expenses. Because Starbucks already offers generous benefits packages to its part-time workers, the cost increases on that side will likely be minimal.
More importantly though, the move will deliver a more consistent experience for customers, with more knowledge full-time, familiar faces serving coffee.
Entrepreneur's Journal: Key steps for telesales success
The week in preview: Focus returns to earnings: Alcoa, Chevron, Family Dollar
Comfort Zone Investing: Survival of the fittest -- letting some banks fail
Reader Comments (Page 1 of 1)
10-04-2008 @ 9:18PM
GamerJunkie said...
Dunkin Donuts coffee is not cheaper than Starbucks. It's also worse in quality, because those hindus that run DD often water down the coffees.
10-23-2008 @ 1:07PM
Mark said...
I was once an avid fan of Starbucks, however there hiring practice needs serious help. I recently went in to order my wife and I coffee, this was right after the so called re-training. They had a new person doing the specialty drinks with no help on a Friday evening. While 4 other workers stood around joking and screwing up 4 straight orders. I finally asked for a refund after 20 minutes and asked for the manager or shift supervisor, I was told there wasn’t one on at night.
This store was in Litiz, PA Route 501
10-23-2008 @ 5:44PM
Louise said...
The 'old' Starbucks was a relaxing haven where I could drink my coffee and relax. Now I have to listen to the baristas talk and laugh in loud voices. Train them to respect the customers instead of socializing with each other. Jazz music with my coffe was wonderful. Bring it back. And tell them to be quiet so I can hear it.