Next month, Starbucks is implementing a storewide change into their approach in preparing beverages. People had been complaining that the care and attention in the preparation of their drinks had been lost due to the assembly line method used in making drinks. Starbucks is responding to this by making employees slow down the amount of time use in making the drinks. No more than two drinks can be worked on at a time and milks is steamed for each drink. This change brings the small coffee feel back to this coffee shop chain. They also claims it will increase the efficiency. I can agree that the quality of the beverages will increase but more time is being taken so i would argue that there is no efficiency change.
Slowing down the production time is going to increase the wait time for customers. This could lead to less people from visiting Starbucks who are in a rush or impatient. People who may need to get their morning coffee before work may go to other alternatives. McDonalds is Starbucks biggest competition already and not only is their coffee cheaper, but it’s also faster now. In this situation I do not think that making this switch is going to reap enough benefits to make it worth it. “Earnings at Starbucks rose 37% while revenue for the quarter ended June 27 increased to $2.61 billion from $2.4 billion in the year-earlier period” Sales are fine for Starbucks so I do not see what exactly starbucks is responding to because whatever system is currently going on is working.
http://online.wsj.com/article/SB10001424052748704164004575548403514060736.html?mod=WSJ_Hospitality_leftHeadlines
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