Tough Economic Times Make the Best Look Bad

Recently the headlines of the business section of local paper read:

Starbucks Now Shuttering 600 Stores

Could Starbucks be going out of business? I thought Starbucks was impenetrable – a super company that could weather any storm and continue to grow at an incredible rate. At the end of March 2008, Starbucks had more than 16,000 stores. Can they all be profitable? It would be nice. Can’t Starbucks shed the money losers without news headlines making it sound like the company might be going under?

Starbucks is blaming some of the store closings on the economy. That’s okay. It’s a good excuse. Here is what I think will happen. Starbucks will continue to play at the top of their game – delivering an excellent cup of coffee with and exceptional customer experience. They know what’s important and realize they can’t slack off because of the economy. That doesn’t mean they have to keep stores that are not meeting revenue standards. All of this is simply smart business.

Watch Starbucks. Even in tough times, Starbucks will continue to teach us great lessons in business.

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).

Customer Service and Product Knowledge Training for Starbucks Doesn’t Cost. It Pays!

Last week Starbucks closed down their stores – all of their stores in North America – that’s approximately 7,000 stores – for a three hour period. Why? Because Howard Schultz, the CEO, wanted to do a special training for all of the employees on how to make that perfect cup of coffee. That coupled with some customer service training made for a powerful three hour session. Mr. Schultz wanted his people to get back to basics and make sure they understood that the root of their basic product success is a great cup of coffee and outstanding customer service.

What did it cost for Starbucks to close their stores for three hours? What did it cost to rally all of the employees together during this time? Every employee was invited to participate in the training, and they were paid. A bigger question would be, what would it cost if they didn’t do the training?

Mr. Schultz has his eye on the ball. He knows what is important. He understands what the business has to do to be competitive and stay on top. He knows that if he doesn’t spend the money to train his people, it will cost him much more down the road.

Starbucks is a legend in the world of quality and customer service. The above is just one example of why. Sure it may cost to train employees, but it cost more not to!

Shep Hyken, CSP is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).