The Homa Files

Excerpted from WSJ: “Starbucks Looks to Reduce Labor Costs”, Oct 3, 2008

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Starbucks is changing its store worker scheduling system so there will be fewer employees working more hours at its coffee shops. The program aims to reduce the company’s labor costs and improve sales by fostering familiarity between customers and a smaller group of employees.

Starbucks introduced its program about a week ago as part of a broader effort to revive the company amid a slowdown in sales that’s prompted it to shut stores and curb its expansion.

Starbucks’ new program also is intend to address the longtime complaint among some Starbucks baristas, who are paid hourly, that it’s too difficult to secure enough hours on the clock each week. Starbucks, which has not guaranteed full-time hours for non-management store workers, is now creating a full-time description that aims to give those employees at least 32 hours per week.

In test markets, workers liked the program because, in the end, it gave them more regular schedules. He said the labor cost improvements will come from a lower rate of turnover among workers and lower training costs.

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Starbucks employs 83,000 people at its U.S. stores. The average Starbucks has about 17 workers.

The Industrial Workers of the World, a union is trying to organize Starbucks workers.

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Full article:
http://online.wsj.com/article/SB122307217095003501.html

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