Starbucks' 5 core principles for success
To supplement our story above about factors of restaurant success and failure, we thought we'd take a look at what Starbucks thinks
is important to their success.
The Starbucks name is now synonymous with coffee. Some 40 million customers
visit Starbucks weekly, and the most loyal customers visit an average
of 18 times a month. Moreover, the company's employee turnover rate is
250% below the industry average. The company now opens an average of
five new locations every day of the year.
In the book, The
Starbucks Experience -- 5 Principles for Turning Ordinary into Extraordinary, author Joseph A. Michelli,
Ph.D., shows how employee motivation, excellent customer service and
satisfaction, and community involvement all go together to build a great
company. it"Whether you're the CEO of a Fortune 500 company, a part-time
entry-level worker, a middle manager, or the owner of a small business,
Starbucks' five core business principles can be applied to your career,
workplace, and company," explained Michelli.
In summary, the five core success principles used by Starbucks described
in the book are:
- Make it your own Starbucks "partners" (employees)
think about customer service in a way that allows each of them to connect
with their customers on a very personal level. According to Starbucks
chairman, Howard Schultz, "We are not in the coffee business serving
people; we are in the people business serving coffee."
matters Paying attention to absolutely every detail
gives Starbucks a competitive advantage because it builds loyalty among
patrons. "Managers have to constantly put themselves in the shoes
of their customers, seeing everything from the other side of the counter," explained
- Surprise and delight Starbucks insists that
it is critical to deliver consistent product and service to delight
customers. But on top of consistent quality, Starbucks' partners
look for ways to surprise and engage consumers in a process of discovery.
In an example of the importance of surprise, Starbucks gave out free
cups of Calm tea April 15 in anticipation that their customers would
be frazzled by their federal income tax deadline.
- Embrace resistance Starbucks encounters many forms of resistance
from communities, international organizations, and at times, customers.
Both at the leadership and front-line levels, Starbucks has benefited
from criticism and used it to become stronger and better able to meet
the needs of those who share their input.
- Leave your mark People want to do business with and work
for companies that are socially conscientious. In addition to its corporate
philanthropy and grant-giving program, Starbucks encourages employees
to be more involved in their community by matching cash contributions
in support of their local efforts. Furthermore, Starbucks leadership
makes business decisions in accord with their own social values.