Tuesday, September 25, 2007

The Great Starbucks Pyramid Scheme

Good morning... What can I get for you?

Today I get to tell you about the Great Starbucks Pyramid Scheme.

So I mentioned this "new" issue yesterday. It doesn't surprise me that the BUX has gotten into this particular pickle. Just like it didn't surprise me a few years ago when Christine Day had to lead us through the Equal Work for Equal Pay lawsuits. That one happened to be around the number of hours worked "off the clock" by partners to get the job done. I know... I was one of those silly folks that believed that labor percents were to be followed to a tee, no matter what. If I'd only kept track of the unpaid inventories I did and the 12 hours of Holiday Planning I did off the clock. I'll tell you about that in a couple of weeks since Q5 is approaching.

OK... I've said this for years. You can't expect an individual to manage a million dollar business (or close to it for lower volumes) for 30K a year. You can't expect quality hiring, quality business management, quality problem solving, and creative thinking for that kind of money. You can't expect a manager to stay a manager when you expect such things and don't provide the right tools to do the job. It's the same of baristas, shifts, and the unfortunate role of ASM... I have no embarrassment in telling you that Starbucks milked me for 16K a year as an ASM back in the 90's... you'll do most things for love so I own that...

Now, it always tickled my funny bone at the number of peers I had that were tenured and figured out that they could make as much and have more work-life balance by stepping down to shift-sup... hourly wage + tips + never having to stay by the phone on days off... can you blame them? Yes, the store manager has a bonus program... but I wonder how many SMs understand how it works and how to plan to make it. That bonus also hits their bottom line... nice. Maybe an SM will comment here on how much input they have to set their budgets... Way back in the day, I had very little power to affect my budget. Sure I got to look at it... and do the obligitory "I think... cuz...", but it always came down to "Here you go... Here's what you have to do, and btw, we need to reduce your labor".

But I'm heading a bit off topic... so, pay attention (you too Starbucks)... Here is the layout/psychology of the scheme from the partner perspective:
  • Partner takes ASM job (secretly hopes to become DM or go to SSC)
  • Partner gets SM job after much internal frustration (still secretly hoping to hang on and get DM or go to SSC)
  • Partner stays in SM job and slowly realizes that there just isn't many DM jobs (maybe they can get into the SSC)
  • Partner is frustrated at the job of being a manager and no room to grow (still secretly hopes to make it to the SSC so they won't quit or move on because they have to much time in now...)
  • Partner either "Promotes themselves to customer" or stays in position and writes about their experience on Starbucksgossip.com (secretly hopes to become shift sup again and make tips)
  • Partner becomes ultimately pissed and joins a class-action lawsuit (secretly hopes to make millions from the outcome... all the while managing their store)
As you can see, it's not sustainable for you Starbucks... or you either, SM... and ultimately you need to get paid in the meantime.

Alright, I've ranted enough and you have to get to work. Now, this isn't about managers delegating (i.e. sluffing off tasks) to baristas. That deserves it's own story... this is about paying a store manager what they're worth and training them for the next level... and let's face it, there isn't enough room for all to become DMs or move to the SSC... It's the great Starbucks pyramid scheme... and those upper parts to the structure have been filled.

We'll see you tomorrow for your usual... Please wipe up after yourself at the freebar.

Pat Nerr...

No comments:

Welcome Message

What's this space worth?


My blog is worth $6,209.94.
How much is your blog worth?

300x250 Ads

Creative Commons License

125x125 Ads

Featured Content