Solutions to the long waiting queues in Starbucks - Term Paper Example

Solutions to the Long Waiting Queues in Starbucks Table of Contents Table of Contents Overview of Starbucks 2 Starbucks Long Waiting Queues Problems 3 Process of the Solution Adaptation 4 Self Ordering and Self Check out Kiosk 5 Self Ordering System: 5 i.Creating brand new system for ordering food 6 ii.Countering Peak hours with Self-ordering 7 iii.Combining Payments and Ordering Systems 7 iv.Enhanced Delivery Systems 9 Self Check Out System: 10 Installation of the Self Ordering and Self Check out Kiosk 12 Expected Costs for the Proposed Information Systems 13 Requirements and Costs of the Information Systems 14 Timetable for the Project 14 Details of the Proposed System 15 Works Cited 17 Introduction Management in organizations is a challenging aspect especially with respect to planning, controlling, coordinating, staffing, and self directing. Firms in contemporary industries continue to experience increased challenges due to various factors such as increased demand from the customers, increased competition, and the need to incorporate updated technology amongst others (Helgesen 821). Most of these challenges revolve around customer satisfaction. Every organization wants to satisfy their customers amidst the increased competition and demand. Majority of contemporary firms have their opted for information systems that would enhance effective and efficient customer satisfaction. An example of a firm that continues to pose great challenges to management is Starbucks. Starbucks has in the recent past experienced high demands for its products. However, the operations within the firm continue to deteriorate causing consumers to wait on long queues (Helgesen 835). It is time for the management at Starbucks to come up with an information system that would reduce waiting time on queues. The following is an evaluation of Starbucks and the problem of long waiting queues. A detailed Starbucks’ problem is provided in the paper. In this analysis, a proposed information system of self ordering and self check out kiosk is proposed. The paper also describes the installation of the proposed information system in addition to evaluating expected costs. Other than the time table of the project, the evaluation provides details of the proposed information systems in respect to the structure and requirements. A concluding remark provides a summary of the major points in respect to the problem of long waiting queues in Starbucks. Overview of Starbucks Starbucks, founded in 1971, is a firm that has coffee houses that beacon for coffee lovers throughout a given geographical area (Starbucks.com). Since 1971 Starbucks has been a major player in roasting and retailing of whole bean and ground coffee besides tea and spices. Starbucks has continued to grow and today it boasts of over 18,000 retail stores in approximately 60 countries (Starbucks.com). The mission of Starbucks is to inspire and nurture the human spirit through the principle of one person one cup and the neighborhood at every given time. One of the reasons for the increased growth in demand for Starbucks’ coffee is the fact that the firm serves the best coffee possible with their goal being providing highest standards or quality coffee besides using ethical sourcing practices (Starbucks.com). Amazingly, the coffee buyers have to travel to coffee farms in Latin America, Africa, and Asia with a view of selecting the highest quality beans that result into high quality products. Other than coffee products, Starbucks also stocks and distributes other products including handcrafted beverages, merchandise, fresh foods, and consumer products such as the ready-to-drink products and ice creams amongst others (Starbucks.com). Therefore, the main brand portfolio for Starbucks include coffee, Seattle’s best coffee, Tazo tea, evolution fresh, La Boulange, and Torrefazione Italia coffee. In addition to stocking and distributing high quality products, Starbucks continues to attract and retain consumers through its corporate social responsibilities (Starbucks.com). Some of the activities relating to corporate social responsibility include environmental stewardship, community involvement, and ethical sourcing. Many consumers therefore would want to be identified by the firm given its responsible nature besides the high quality products stocked and distributed. Starbucks Long Waiting Queues Problems Increasing demand for the high quality products from Starbucks has led to high number of customers that visit a given store at any given time (Starbucks.com). Nonetheless, Starbucks does not have effective or efficient information system that enhances speed with which customers are served. Consequently, Starbucks continues to face serious challenges of customers waiting in the queue. Starbucks continues to experience poor performance from the staff given stresses related to long waiting queues by customers (Lee & Silvester 12). Unfortunately, some of the customers cannot sustain the long waiting queues hence leave without placing their orders. There are clients who have stopped going to Starbucks due to the long waiting queues and instead used competitor’s products instead. According to Lee and Silvester (12), long waiting queues have cost Starbucks orders and potential customers who would rather use coffee products from other firms other than waste time on the long queues. Starbucks has therefore failed in achieving customer satisfaction. The main reason for the long waiting queues is the single line and single server used within Starbucks stores. Starbucks stores have single lines and single servers where customers enter into the queue and obtain their priority with respect to first come first serve basis (Lee & Silvester 12). It is even amazing that once a customer is on the queue there is need to process order, which entails interactions with the cashier for purposes of obtaining specifications and recording order before obtaining the receipts upon payments (Scandit.com). After the receipt has been obtained, the client has to wait for the order to be prepared by barista who announces the completion of the order to the client (Lee & Silvester 12). This is a long process that continues to discourage most customers along the queue as well as those who would have wished to go to Starbucks and purchase the coffee products. Process of the Solution Adaptation Based on the above problems, there have been serious calls for Starbucks’s management to come up with effective strategies that would enhance customer satisfaction (Silvester 12). Customer satisfaction in this respect within Starbucks is only attainable through employment of a process that would reduce the long queues thus attracting more customers (Pratibha, Michelle, and Eun-Ju 60). There are many strategies that Starbucks could employ in order to attain customer satisfaction. Some of the examples of strategies to solving the long waiting queues include designing systems that deal with demand variations, systems that builds staff capabilities to meet the growing demands, concerted leadership actions, increasing the queue service provider, and analysis of service or production process for purposes of establishing ways of speeding up the queues (Pratibha, Michelle, and Eun-Ju 68). One of the best strategies for Starbucks would be to incorporate information systems in order to solve the problems associated with long waiting queues in a bid to achieve customer satisfaction (Silvester 12). Amongst the many information systems applicable in solving problems associated with long waiting queues would be the self ordering and self check out kiosk system (Pratibha, Michelle, and Eun-Ju 75). The following analysis provides an understanding on how the self ordering and self check out kiosk information system would be incorporated within Starbucks in order to enhance customer satisfaction through reduction of long waiting queues. Self Ordering and Self Check out Kiosk Self ordering and self check out kiosk information systems are effective and efficient in getting rid of or reducing the long waiting queues that continue to discourage clients from purchasing Starbucks’ products (Silvester 12). Self Ordering System: Self ordering system is one of the perfect ways of enhancing quick service within Starbucks. Self ordering systems will allow Starbucks to increase the average check amount, increase speed of sales, reduce associated expenses, and attain customer satisfaction (Pratibha, Michelle, and Eun-Ju 90). In the contemporary business environment there has been increased use of ATMs, automatic vender machines, computerized and automated grocery and retail check out. Starbucks may enhance customer satisfaction through incorporating self ordering system. There are various ways through which Starbucks may incorporate self ordering information system in order to achieve the desired customer satisfaction through removal or the long queues for customers (Silvester 12). The following are some of the ways of incorporating self ordering information system in order to reduce the long queues and attain customer satisfaction: i. Creating brand new system for ordering food Self ordering system within Starbucks may include creation of a new system that allows for ordering of food. In this way, Starbucks develops a technological terminal such as the Mio Terminal and an LCD screen (Silvester 12). Customers that enter the organization would make their orders on the technological terminal placed at the entrance by simple tapping. After tapping the technological terminal placed at the entrance, a voice prompt will assist the client in making the orders whilst displaying all the available products (Matthew 52). The client will simply tap the products desired and press an OK button, which will send desired signals to the machine for purposes of producing the order ticket (Scandit.com). In the mean time, the barista will also have chance of viewing the customer’s order whilst the ticket is being printed out. The client will then walk to the cashier to make for payments. By the time the client walks to the cashier for purposes of making payments, the barista shall have concluded with preparing the products order by the customers (Digi-delious.com a). In order to avoid any possible confusion, the client’s ticket will contain a serial number, which will also be produced on the side of the barista. Once the order is prepared the barista will place the serial number on the order. Upon reaching the collection stage, the barista will check the receipts as well as the serial number and match the same with the serial numbers on the products already prepared. As a result, there will be detachment of the payment systems from ordering and collection reduces long waiting queues experienced within Starbucks hence enhances customer satisfaction. ii. Countering Peak hours with Self-ordering There are instances when the Starbucks experience high amount of customers at a given time. For instance, during cold seasons many clients are likely to buy coffee products. In addition, there is a likely to be an increase demand for the products in seasons or days when there are many functions (Scandit.com). In order to counter the peak hours of consumers or demand, Starbucks may incorporate information system whereby barcodes are printed on the order tickets thereby providing express processing of the customer’s order besides payments. In this case, food order has also been separated from payment process as well as dispatch of the products (Digi-delious.com a). It should be noted that this information system ensures that customers are served efficiently and effectively without compromising of the service levels. iii. Combining Payments and Ordering Systems Another way of incorporating self-ordering system within the operations of the Starbucks is through combining order and payment systems (Matthew 59). Starbucks can use its websites into allowing customers to make orders and pay for their order good before going to collect them (Digi-delious.com b). In addition, there can be a system at the entrance where customers with credit cards and other payments modes such as PayPal and money bookers amongst others may order and pay for the products before walking to the collection counter to receive their products (Scandit.com). In this system, Starbucks will ensure that there is a database containing all the products and their prices. The consumer will walk into a Starbucks’ store; select the products he or she would wish to have and click the payment button options. The payment button should have various choices to select from such as credit cards, Payoneer, PayPal, or money bookers. Once the payment mode is accepted the client will key in the required details (Digi-delious.com a). If the payment details are accepted the client will receive a receipt that detailing orders and the payment code (Scandit.com). Using the barcode on the receipts the barista at the collection counter will help the client in packaging their products. The combination of payment and order systems reduces the time taken by consumers within the store hence making it possible to achieve customer satisfaction (Digi-delious.com b). Notably, all these processes are technological hence making the process simpler, faster, and more efficient. Payment system that Starbucks may employ in order to enhance their customer satisfaction would involve the following flow chart. The chart displays options for different making payments: Figure 1: Payment System (Digi-delious.com a) iv. Enhanced Delivery Systems Lastly, Starbucks may also use enhanced delivery systems within self-ordering system to come up with a better way of serving the clients. Enhanced delivery system will combine both payment and ordering systems (Scandit.com). A client will make order and payments for the products ordered. Once the order and payment is made, the system should allow for the client to choose how delivery should be done. Starbucks should start a system where ordered products can be delivered to the customers within a given circumference. The system will not only reduce the number of customers going to the store to collect the products but also provide a wide opportunity for customers who would wish to obtain Starbucks products without moving an inch. These are some of the information systems with respect to self ordering system that can enhance effective and efficiency of customer satisfaction. Basically, self order will have a following chart: An example of self ordering system that can be employed is the Delicious Mio Figure 2: Automated System (Digi-delious.com a) Self Check Out System: Apart from self ordering system, Starbucks can use self check out system in order to achieve customer satisfaction. Self checkout systems refer to technological information systems where the traditional cashier-staffed checkouts are replaced by mechanisms that make clients pay for their purchases using some technological devices (Scandit.com). Self checkout systems provide adequate solutions towards enhancing shopping convenience of consumers as they buy their products. . Self checkout systems involve the use of built-in investment that Starbucks may employ in order to make sure that the long waiting queues are considerably reduced. Benefits that Starbucks will obtain from using self checkout systems include improved customer satisfaction based on the reduced time to provide efficient services, increase the number of transactions, increase the customer footfall, and also reduce the workload on staff (Scandit.com). Best practices of self checkout systems include attendant clarification, reduction of maintenance costs, selecting and prioritizing stores for installation, facilities planning, store operations, and training of managers amongst others. Surprisingly, self checkout systems will reduce the check out systems within Starbucks given the fact that it is easier and possible to run more than two checkout units efficiently at a given time, which would otherwise require more than one cashier (Selfserviceworld.com). Indeed, incorporating self checkout systems within Starbucks will help in achieving the desired level of customer satisfaction. The following diagram shows an example of a self checkout system that Starbucks should incorporate within its supply and delivery system or chain. Figure 3: Self checkout systems (Selfserviceworld.com) The following is a flow diagram that represents how the self ordering and self checkout system will be attained: Figure 4: Flow diagram for the system (Mayank and Saraf b) Installation of the Self Ordering and Self Check out Kiosk It is important to understand that self ordering and self checkout systems should be installed within the Starbucks stores (Scandit.com). However, given the risks and uncertainty involved in such installations, Starbucks should install the two information systems in phases. It is important to identify stores that have for the past experienced increased number of customers. Starbucks can start from such stores whilst monitoring the progress (James, Meuter, and Surprenant 210). After that, it should become possible for Starbucks to install self ordering and self check out systems to all the stores for purposes of enhancing and achieving customer satisfaction (Selfserviceworld.com). Moreover, Starbucks should not employ all the information systems at once (Scandit.com). There is need to identify simpler information system, employ the same, and monitor the progress before incorporating advanced information systems such as the enhanced delivery system. Notably, the installation of self ordering and self checkout systems within Starbucks should involve the following steps: Conducting a market research in order to establish various stores that always experience high number of customers Carry out a forecasting and projection analysis to identify the specific stores that are likely to have increased customer demand in future Identifying alternatives simpler self ordering and self checkout systems that the organization should employ Identifying the costs of the alternatives and possible rewards that are likely to be derived from the same in respect to customer satisfaction Selecting the best simpler alternative amongst the alternatives Monitoring the progress of the information system in respect to customer satisfaction. Expected Costs for the Proposed Information Systems In order to calculate the costs associated with the proposed information systems, it is better to identify the requirements and specific prices of each requirement (Bennett and Sharyn 514). The following information provides the various requirements that Starbucks need in order to install the simpler alternative, which is creating brand new system of ordering the products. Requirements and Costs of the Information Systems Installing the simplest alternative of self ordering and self checkout system that Starbucks should install within its operations of creating bran new system of ordering products would include the following and their prices: Requirements Quantity Price Costs 15” high-resolution color LCD touch screen 50 $ 300 $ 15,000 Integrated hi-fi audio 50 $ 150 $ 7,500 Lead-through animation 50 $ 50 $ 2,500 Multi-path screen flow 50 $ 50 $ 2,500 Human factors-designed non-bar-coded item look-up 50 $ 100 $ 5,000 Lights to provide additional visual clues 50 $ 50 $ 2,500 Reversing take away belts 50 $ 150 $ 7,500 Electronic Article Surveillance 50 $ 300 $ 15,000 Audio and Visual prompts 50 $ 200 $ 10,000 Store Intervention light 50 $ 100 $ 5,000 Installation (30% of the Material Cost) $ 21,750 Total Costs $ 94,250 Timetable for the Project The project’s timetable will be in two phases; the first phase will entail the procedures involved in coming up with the project whereas the second phase will involve the actual activities. The following tables refer to timetables involved in fulfilling the requirements of the project. Activities   1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Display Bill 1                                 Select Mode of payment 2                               Read Card 3       Dial bank 4       Transmit information 5       Display error message 7     Approve card 8       Print receipt 11       Transmit order to kitchen 12       Accept cash/coins 13       read amount 14       Count total amount and display 15       Details of the Proposed System Apart from the aforementioned physical requirements of the proposed information system, there is need for Starbucks to identify and evaluate the details of the proposed systems (Mayank and Saraf a). The details of the proposed systems include the structure and the requirements of the database (Selfserviceworld.com). The following discussions identify the structure of the intended database as well as the requirements of the database, which will ensure that the proposed information system is effective and efficient thereby achieving desired consumer satisfaction. From the above flow chart, it is clear that the database would include various aspects. Some of the aspects of the database would include system level requirements, objects, attributes, and functions (Mayank and Saraf a). The following table provides the requirements, objects, and attributes of the database structure required in order to enhance customer satisfaction through self ordering and self checkout system. System Level Requirements Object Attribute Function Opening of the Starbucks store Fast Food system Time System capability to serve from 50 to 125 customers Fast Food System Throughput Managing queue through passing orders sequentially via the FIFO process Internal Ordering System Order No. Transmit Order to Kitchen function Ability to order item either by name or by number Item Type/Name Order Ability to support native and other commonly spoken languages Display Language Average order takes up to 1 minute with variance of 15 seconds Kitchen Make Order Customers takes 2 minutes to complete and ordering process Place order Equipping system with QWERTY keyboard Keypad Layout Printing order number on the customer’s bill Receipt printer Order No PrintOrderNo System accept cash and coins Cash Acceptor Type AcceptCashAndCoin System accept debit/credit cards Card Reader Type ReadCard Touch screen displaying the inputs Touch screen Type System reading the swiped card Card Reader LocationOfSlot Order transferred to the kitchen touch screen instantaneously once the use does the payment Kitchen Screen Protocol to communicate TransmitOrderToKitchen Figure 5: Database System Requirements (Mayank and Saraf b) Works Cited Bennett, Rebekah, and Sharyn, Rundle-Tiele. "Customer Satisfaction should Not be the Only Goal." The Journal of Services Marketing 18.6 (2004): 514-23. Digi-delious.com (a). Delicious Mio; Express ordering solution, bring fast food restaurant operation turnaround to a new level. Web. 8 Dec. 2012 Digi-delious.com (b). Self-ordering systems. Web. 8 Dec. 2012 < http://www.digi-delious.com/index.php?page_id=55> Helgesen, Oyvind. "Drivers of Customer Satisfaction in Business-to-Business Relationships." British Food Journal 109.10 (2007): 819-37. James, M. Curran, L. Meuter, Matthew, and Surprenant, Carol. "Intentions to use Self-Service Technologies: A Confluence of Multiple Attitudes." Journal of Service Research : JSR 5.3 (2003): 209-24. Lee, Martin. & Silvester, Kate. “Case study to demonstrate the principles in the paper, ‘reducing waiting times in the NHS: is lack of capacity the problem?” Clinician in Management, 2004. 12. Matthew, L. Meuter, et al. "Self-Service Technologies: Understanding Customer Satisfaction with Technology-Based Service Encounters." Journal of Marketing 64.3 (2000): 50-64. Mayank, Vimal. and Saraf, Deep (a). Project: Fast food automated ordering system. Web. 8 Dec. 2012 < http://www.isr.umd.edu/~austin/ense621.d/projects04.d/project-food-ordering.html#sec7> Mayank, Vimal. And Saraf, Deep (b). Project: Fast food automated ordering system. Web. 8 Dec. 2012 < http://www.isr.umd.edu/~austin/ense621.d/projects04.d/project-food-ordering.html#sec6> Pratibha, A. Dabholkar, Michelle, Bobbitt L, and Eun-Ju, Lee. "Understanding Consumer Motivation and Behavior Related to Self-Scanning in Retailing: Implications for Strategy and Research on Technology-Based Self-Service." International Journal of Service Industry Management 14.1 (2003): 59-95. Scandit.com. The Expanding World of Mobile Payments: Self-checkout. 12 Aug. 2012. Web. 8 Dec. 2012 Selfserviceworld.com. The restaurant self-order kiosk. Web. 8 Dec. 2012 Sharma, Arun, and Dan Sarel. "The Impact of Customer Satisfaction Based Incentive Systems on Salespeople's Customer Service Response: An Empirical Study." The Journal of Personal Selling & Sales Management 15.3 (1995): 17-. Silvester, Kate. et. al. Reducing waiting times in the NHS: is lack of capacity the problem? Clinician in Management, 2004. 12 Starbucks.com. Starbucks: About us. Web. 9 Dec. 2012. Read More