Discuss the Thursday conference calls here

"Seems like something big is happening on Thursday," says an e-mail from a Starbucks Gossip reader. "All rvp's and rd's have a conference call with Howard [Schultz] at 9am. RDs are then to have a conference call with all their DMs and SMs at 11. Last time this happened was the announcement of the store closures." There's been other speculation other in the RED thread below; what are you hearing?

Comments

[dipwell]

Perhaps there are going to be some results of the biannual analyst meeting hosted in NYC from Tuesday 12/2 to Thursday 12/4.

Stores in the Red and Yellow Zones have been scrubbed cleaner than they have been in years and over staffed with District and Store Managers from neighboring areas.

Its the usual over-hyped production when there are visitors in town, however come Friday morning you'll still see that poor tired Barista remaking that overpriced latte without any support.

I love the dog and pony show. Maybe next time they come to town we can run with the staff we're supposed to so they can see what their labor cuts do to our businesses.

I know it's your blog, and you can write what you want....but are you really encouraging partners to leak inside information about the company? This "conference call" that may or may not really be happening, and what may or may not be the agenda of this "conference call", is really not public business if you ask me. If the public was meant to know, Sbux would release a statement; I'm willing to bet the super-secret conference call is to give our partners the respect of knowing what is going on with the business first.

I really enjoy reading this site because I enjoy hearing other partners' and customers' opinions on things, and sometimes I do get new information or helpful tips here. However, when you stick your nose in company business that is not yours, it makes me want to stay away from this site.

[FLA SM]

To the above poster: perhaps you didn't notice this site is called Starbucks GOSSIP.

[FLA SM]

I'm curious. Did this email about the conference call go out to all the stores? I didn't see it. Where is this info coming from?

FLA SM, I am right with you. I must have missed the message too.

Wait a minute, I just got the e-mail. I do have a required conference call tomorrow.

[mrSM]

Is this only happening in the US? I have not heard of it in Canada.

[jabanga]

maybe someone can just post the numbers and codes and we can all call in...

[me]

jabanga if someone is really going to do it, Jim better deletes it right away. They would really try to shut this site down...
And i wouldn't blame them (this time)

[Melody]

Are there two users named "me" ?

[Sinking Ship]

The beating will continue until morale improves.

[Just another Shift]

The (honestly uninformed) store managers in my area think we're being bought out by McDonalds. I'd prefer this to any more partners losing their jobs (especially my wife, an ASM, and myself.) Any other good buyout rumors?

[Me]

Melody, yes, sometimes my name gets hijacked.
What I meant is, this would be a little bit too much if someone would give out the detailed numbers. Starbucks couldn't just stand by and watch. As curious as I am (I'd love to listen in) but I wouldn't want anyone to post the numbers. Do you guys remember that once when someone actually posted the codes for the manager menu?
I really think we should treat this site as what it is, a gossip site. But posting company secrets as codes, passwords, confidential information shouldn't be part of it.
Just my thinking.

We already have a relaionship with Pepsi.

[P.R.I.D.E.]

Me- I'm sure whatever is being disclosed on the call, will be simultaneously disclosed on the analyst call. I think that's the purpose- so that everyone gets the message at the same time.

But it will surely get the Starbucks "speak" in the RD/DM/SM calls, I'm sure.

[Janelle]

My GF was just told she was not getting a bonus. She has worked at the company 9 years and we use the bonus for our daughter's school. This SUCKS - how lovely of them to tell employees in December. Thanks, Starbucks.

[energybolt]

Good to know we're not alone tomorrow with the conference call - hopefully its content isn't too devasting - or that our customers know something before us!

[chloe]

i got a call today about the mandatory call, and an email at the store. these vague mandatory calls make me nervous. any inside scoop is appreciated.

[Mystery]

They always have these company wide conference calls when they have good news! Maybe they are getting ride of Pike Piss, or are going to stop sending bananas to my store. Giving us enough labor to truly provide legendary service? Barista raise? Manager raise? Raise for Howard Shultz?

[Jim C]

The Conf. call on Thurs. will be about:
1) restricting more labor hours
2) some fluffy stuff about scam(red)
3) the possible closure of more stores
4) the conversion of some company stores to "licensed" (read: franchised)

[Coffee Solider]

Janelle.....What bonuses are being canceled? I still haven't got mine for making sales and CC this past quarter! I'm hoping for this coming pay period. It's already later then normal for some reason! It seems to usually the first pay period in the second month of the quarter.

[Melody]

Me - I was just curious. And I too think it would be inappropriate to see such numbers and codes posted here. That stuff is confidential!

How often have these kinds of conference calls happened in the past? Is there any pattern with them? I would guess more store closures, just making a very wild guess.

The only thing I want to hear tomorrow is that Howard is packing it up. Sell out.

[Melody]

Argh - my post was confusing - I was just curious if there was more than one "me" or not - not curious about the codes!

[spence]

Allow me to dream for a moment, please.
1) They realized people don't like Pike Place and are replacing it with a variety of well liked coffees.
2) They realized that customers aren't coming into the stores because it takes so long and the shift is ignoring the lines and counting milk.
3) Woops. They screwed up. Back to pouring shots into glasses.
4) Starbucks is about customers. They suggest we add labor so we have time to make the drinks properly and unpack the Christmas boxes.

[Me]

How about we all dream spences dream and pray for it to come true... The power of the masses.
We could at least give it a try. :-)
It would be sooo wonderful.

[Melody]

Agreed! Spence's dream is also a customer's dream come true! :-)

[anonymous SM]

I have been told the call is about labor, and managing costs.

[spence]

Hi Chloe,
It was about 1pm. I thought all markets were supposed to be serving bold until 5pm until Christmas.
As a P.S. to my last post: My husband didn't speak in an unkind manner; just matter of factly. Then he turned and walked out of the store. I didn't even show my partner card (kind of embarrased). Then I had to ask them to fill the nearly empty hopper before they made my drink.
It was not pleasant being on the customer side of the counter.
On labor: I was given 1 hour to unpack the order yesterday. I didn't come close to finishing when time was up. We haven't had French Roast on the shelf for 3 weeks because no one has time to move the boxes and get to it.

[jbjava]

Anonymous...
I don't know why they would have to have a massive conference all about labor and managing costs when they have been hammering both of those things in everyones heads all along. It has to be bigger than that I would think.

Let's hope its something bigger than that! All the costs associated with a massive call like this---

1 hour LABOR, Numerous Conf Lines, partner bevs while we listen= lots of money.

Hearing bad news right before Christmas= Priceless

[chloe]

re: December 03, 2008 at 03:20 PM

yeah, conference call are EXPENSIVE. but i'm off tomorrow, so i just get to do it on my own phone on my own time. the joys of being exempt.

spence - i feel you on that. i was in a near panic doing siren's eye because we've been getting conversations about our non-coverage, and there wasn't enough time to get it all done. if every mug wasn't in its own goshdarn box i think it could cut 30% of the time off, not to mention saving a few trees. :P

[Kathy]

Did I see someone speculate that they might open/change to more licensed stores? I hope not, because they can pick & choose what SBX policy they follow. Most of them do not honor the registered card benefits or the gold card benefits. Most of their employees do not have very extensive knowledge of the various coffees.

[jr brown]

Just hang tight. Those that work for sbux or anywhere else for that matter, be thankful for a job. Times are tough. Real tough. We seem removed some what due to demographics... Job is a job. Our bad days really are better than good days at most jobs. Head up and hang on/in there!

[4merOCSM]

Maybe a bit OffTopic, but I am deeply saddened by the tones of what I read here. I am barely 4mer (by only 6 months) and the Company that is blogged about here sounds nothing like the organization I left in early summer. It is true that there was drama around my departure and perhaps there were far off sounds of this cacophony when I left, but there is a whole lot more going on here than I could have imagined.

[Jim Romenesko]

Please take the bold coffee discussion to the most recent open thread below. This thread is devoted to the Thursday conference calls.

[a]

I'm not sure where people got all this garbage about the elimination of the ASM job role from...

The conf. call is for US company-operated stores, so its likely about retail management incentives, labor management, total pay, and anything restricted solely to the US. If what we've heard about is true, then everyone who mentioned labor is dead on.

If the concern was that the ASM job is redundant, then the move would be COMPANY WIDE, meaning US store managers, Canada store managers, UK/EMEA store managers and JV partners would be on the line. Why would they can the ASM job in the US and keep it in the rest of the markets, which have just as many ASMs...

Not to mention, I'm sure an ASM or two got hired today.... they wouldn't hire redundant positions.

The ASM job is safe, and isn't going anywhere, however I can see it changing from a salaried position to a retail hourly position (like back in the day when we had a "keyholder" and then a "lead" partner)

my problem with this call is, we just had the leadership conference a month ago... and really, we have been getting communications about cost/labor cutting all along. this feels different. i can count the amount of company-wide calls we have had in the last five years on one hand!

[Pat Nerr]

I'll be listening in at 11... My local baristas were good enough to provide the info... should be a hoot

[BaristaKat]

Wow, from what I'm reading here, it's not just my manager that is f-ing up scheduling. Wow. That's awesome...I don't understand why sbux thinks that we should bust our asses everyday to get their product out, and lose customers because of the wait, and then have the nerve to tell us we need to move faster. Our efficiency isn't as fast as it used to be, but with all this new bullshit about drink making, of course it's not going to be...if I could make more than one drink at a time, of course things would move faster. But, what do I know? I'm only the one who does it for a living...

And yeah, totally didn't know about any conference call. Awesome. Maybe I should start hunting for a new job...:(

I don't know is=f the ASM elimination rollout will be made on the call tomorrow, but you better believe that this has been on the table for some time. Lists were drawn, certain corporate roles were drawn in for opinion, and it has been spoken about. So again, don't know if this is what the outcome is for tomorrow, but anon above is giving some of you a little too much confidence.

[WVSM]

My guess and this totally a guess is that Non-Coverage is being completely eliminated. We may get a small allowance to be over 0% (say 1%-2%) for doing the schedule, but they have cut about all they can cut out of labor except for Non-Cov. I guess we will all find out soon enough right? How many other companies even allow Non-Cov time of one whole day to plan your business. I know the previous job I had didn't give "Non-Cov." I had to be apart of coverage when I sat down to do any paperwork or scheduling.

[Tracy]

WVSM - managers at other places usually have time to work off the floor - don't they? Essentially during 'coverage' time for a manager, they're just another SS. At least that has been my experience.
The noncoverage time lets the manager prepare for the week - do the orders (or double check the ones that your 22 year old SS messed up on because they don't have any knowledge about how a business works), prepare the schedule, and all that stupid paperwork that Sbux makes them do.

[sbux customer]

please post info after the call, i'm dying to know what is happening!

My manager and I had a speculation discussion about the call. I brought up the idea of elimination of the ASM role. SM argued against it because a. they just redid the structure of bonuses for ASM, why bother if you're cutting it out? b. the ASM role has always been transitional, in 1 year your either up or out. We did speculate they may "overhaul" it, making all ASMs 8 week MITs instead of the 8 month program, with more "leadership" development in the shift role.

2. Buyout or Franchising (we both are pretty strong on this one)

3. More store closures

4. Redistricting, with fewer DMs with more stores

5. Taking away healthcare for part timers, which seems more likely the more I think about it.

I'm a SM and the ASM role appears to me to being phased out. The company has raised the ceiling on what a stores weekly sale must be in order to afford an ASM. Only one store in my district has one now. My non-coverage has already been cut this quarter so I've been doing my admin in two hours a week in order to hit my target.

[Jai]

My store makes 32,000 a week and we are allowed two ASMS. I honestly don't think we really need two of them, as the manager does the schedule and each ASM does either the paper or plant order each week. I guess it wouldn't be out of the question to eliminate the ASM and just make the SM take an half hour to do the order. Our store has little non-coverage time. The only time my manager takes non-coverage time is on mondays to do the schedule. Everything else (payroll, orders, other misc. things) are done as coverage time when there are slow periods.

[Peter]

I know ASMs who have been in that position for years. It's not really transitional, as there will never be enough stores to go around in most cities regardless of how well your ASM performs.

[T]

My DM was talking to one of my shifts yesterdsay about becoming an ASM, so I would find it odd if they announce the termination of the ASM position...but who knows.