February 11th, 2009 | Author: admin
Starbucks – the place everyone loves (or so they say) needs to change several things if it is to stand a chance of survival in the ever declining economic climate.
One key change needed is the doctrine of “give the customer what ever they ask for”. In pure customer service terms it’s reasonable, but store managers need to be empowered to “manage” there stores especially as they are expected to achieve targets that were reasonable in the good times but are outrageous in this climate, when they know that customers are blatantly scamming the store’s bottom line.
The last thing we want to do is expose ALL the scams, people will read them and the problems could compound. However, to illustrate the point here is one simple one. If a customer has a Starbucks card and buys a drip filter coffee for $1.75, the company policy is that the customer can get a free refill from the same store that day – the customer saves $0.53. If the customer goes to another store with the same cup and asks for a refill – that store should charge $0.53 for the coffee as opposed to $1.75.
The problem: store staff are so brainwashed with “give the customer …” that many customers will take a cup into any Starbucks and ask for a “refill” and be given it “free” regardless of whether the original coffee was purchased at that store or not. Add to this that people will pull this stunt 2/3/4 times a day at various Starbucks locations, knowing that they are unlikely to be challenged because “that’s not Starbucks policy to question customers” you can see how the numbers start to add up.
Starbucks stock holders should be outraged at this poor level of internal financial management control. Why? For those who are thinking – its only $0.53, let’s look at the numbers closely.
If it happens once at each store:
- $0.53 x 7087 (Starbucks published store count) =$3,756.11
If it then happened at every store just once every day of the year:
- $3,756.11 x 365 = $1,370,980.10 ($1.37M) per year in lost revenue, and that assumes only one person per day every day at every store. But as stated earlier, some people are doing this 2/3/4 times per day 4 or 5 days per week! DO THE MATH!
So what, Starbucks as a corporation will never notice! Let’s look at this another way:
- Barista’s average $10 per hour, so roughly $20,000 per year, if this one scam was stopped DEAD then the $1.37M would enable 68 Baristas to have (keep) jobs!
- OR at $10 per hour it would provide 137,098 hours to be funded for what Starbucks calls “non-coverage” which could mean Managers could spend that time managing (a novel idea) instead of working as overpaid Barista’s – OR – provide more time for staff training.
However the money is used is not the real issue, customers are not scamming a faceless corporation, they are costing people their jobs and quite possibly their homes! What they are doing is
- Dishonest
- Deceptive
- Fraudulent
- Theft
- and quite frankly disgusting – because of their greed they are placing peoples lives in financial ruin!
The two most disgusting things about this and other more costly scams, are:
- Starbucks (yes you Shultz) allow this to go on – so much for their “respect and dignity” policy towards their partners
- The people who for the most part that perform this act of blatant “theft” are not the homeless, or the poor, but those who know “the rules”, who know that the brainwashed Barista will not challenge them when they say “give me my free refill”. They are the ones who can well afford to pay, are often professionals and gainfully employed with little or no sign of being “separated from their employment” (what a quaint PC term) any time this decade. They are often well dressed, drive premium cars and can afford $0.53.
So, if you are one of those dishonest “thieves”, when your local Starbucks closes down and provides you with an “inconvenience”, pat yourself on the back for helping add to the unemployment figures and probably also to the home foreclosure statistics. Sit back with a smug smile of contentment as you reflect on how you and others like you added to the demise. Look out of the window of your prestige vehicle and watch as the tumbleweed rolls past what was once your “favorite, so convenient, Starbucks drive-thru’”, that was once a place of employment for many, manned by people who went out of their way to provide you with an “experience”.
Cut back on your spending habits by all means -
but cease being a thieving ASSHOLE!!!!
As for the mighty Howard and his merry band of incompitents (including District Managers), get your heads out of the clouds (and the $45M jet!) and change the policies BEFORE firing any more people.
Good post! I wish Starbucks would seriously look at this…it seriously is affecting the bottom line. I see it everyday…not just your example but many, many others. The biggest one is people saving their large iced cups and day after day bringing in the same cup for a .53 refill price…same thing as the coffee. We need to charge for what the customer is getting….period!
BTL – Thanks for the comment. Hope you can spread the word about the site – more to come.
Thanks for the post! That’s just the tip of the iceburg too… it doesn’t count those people that get shots of espresso over ice, then proceed to the condiment bar to make an iced latte out of the condiment milk, the cups of whipped cream for Fido riding in the passenger seat, “EXTRA caramel sauce on top and bottom of the cup”, etc. that get given away to keep people from bitching to the DM or higher and to keep those infamous Customer Voice Surveys from coming back negatively.
You may want to check the actual policy on refills and correct the behavior because a refill is only good while in the cafe on that visit. You cannot come back or take your cup to another store to get a refill.
The just say yes policy applies in most cases but not this one. If you have allowed this to happen it’s the fault of the leadership in your area. Fix it !!
I know in Canada, it is even more worse. The customer asks for a short coffee and asks to add stem milk and syrup, which really should be charged as a venti misto, but pays for a small coffee. Next, she comes in and gets refills on that with all the fixings. Now this customer does not steal in the sense that she will ask for a free refill at the store that she did not previously make her purchase, but they will play within the rules to the nth degree. Lawyerish? Yes. Thief? No.
Another fellow plays the refill game but it gets worse. The customer who actually a middle class businessman buys one cup of coffee and has kept getting refills over and over day after day. He doesn’t even pay for the first cup of coffee. He even laughed and said that his registered card is like the Federal Reserve Bank where coffee comes out of fiat, out of thin air, pretty much in the same way money is printed out of thin air out of the US Federal Reserve Bank.