SEATTLE -- Starbucks Corp. on Tuesday conducted what it called an "unprecedented in-store education and training event" for more than 135,000 of its employees. As part of this major customer-focused initiative, Starbucks is also introducing a promise to exceed customers' expectations by delivering the "perfect" drink every time.
The company shut down all of its in 7,100 U.S. company-operated stores for 3.5 hours (5:30 p.m. to 9:00 p.m.). "The comprehensive educational curriculum to provide a renewed focus on espresso standards…will help ensure the exceptional quality of every beverage," [image-nocss] it said.
"The very heart of the Starbucks Experience is the connection our baristas have with our customers through a shared passion of exceptional coffee," said Howard Schultz, chairman, president and CEO concerning to training. "Tonight is about celebrating who we are and reenergizing our focus on and commitment to those things that have made us the world's leading roaster and retailer of specialty coffee. We are incredibly proud of what we have built, but as tonight clearly demonstrates, we are reaffirming our coffee leadership, and neither we nor our customers will settle for the status quo."
He added that customers will be greeted with the following promise: "Your drink should be perfect, every time. If not, let us know and we'll make it right."
The promise will be prominently posted in every U.S. company-operated store, and baristas will demonstrate a personal commitment to their customers by signing the promise upon completion of the training.
Starbucks partners in 43 other countries will undergo the training over the course of the coming month. Licensed U.S. locations have also committed to taking part in the training over the course of March.
The company has nearly 16,000 stores and more than 170,000 employees in 44 countries.
The event was "part espresso tutorial, part pep rally," said an Associated Press report. Instead of dumping shots straight into the paper cups they will serve to customers, Starbucks baristas are getting back to pouring espresso into shot glasses first. "You get to see if it's a quality shot of espresso," store manager Justin Chapple, 25, told AP during a training session at a New York City store.
Starbucks switched to automatic espresso machines years ago, but it still takes skill to work them. Baristas have to adjust the grind to make sure a shot doesn't pour too quickly, making it watery, or too slowly, making it bitter. "It's not as simple as pushing a button," said Ann-Marie Kurtz, Starbucks' manager of global coffee and tea education.
Starbucks would not disclose how much revenue it lost during the shutdown, but analysts say the financial impact will be negligible compared to charges the company will take as it closes about 100 poorly performing U.S. stores this year and pays severance to more than 200 corporate support staff it laid off last week.
U.S. stores make up the bulk of Starbucks' revenue, which totaled $9.4 billion in fiscal 2007, when the company earned more than $672 million.
Robert Toomey, an analyst with E.K. Riley Investments, said he did not expect a backlash from customers getting turned away. "It's a low-traffic time of day," he told AP. "The risk of ticking off customers is pretty minimal."
It makes sense to tackle the training in one fell swoop, and it shows the company—which has seen its stock slide about 50% since late 2006—is committed to turning itself around, Toomey added. "The quality of the product has deteriorated a bit over the last few years, and they know they've got to improve it."
At least one competitor tried to capitalize on the temporary "shutdown," said AP. Caffe Vita Coffee Roasting Co.'s Seattle shops gave away free espresso drinks while Starbucks' locations were closed. McDonald's Corp., which has been trying to steal Starbucks customers by revamping its coffee menu, declined to comment on Starbucks' training effort and offered no special deals Tuesday.
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