"This needs to be stopped for the good of the company"

A Starbucks Gossip reader e-mails: "Could you make a thread on the incorrect ringing of promotional drinks, a topic that caused much discussion in the open thread? The behavior of DMs [District Managers] and RDOs [Regional Director of Operations] in regards to this is borderline criminal and fraudulent, and needs to be stopped for the good of the company." || Jump to second page of comments

Comments

[SBUX Alum Bill]

I think this is just another case of a poorly structured incentive program (similar to the bonuses that management was earning until a couple of years ago for opening a large number of stores, regardless of cannibalization effect, quality of location, favorability of lease terms, etc.). These poorly structured programs drive bad decisions & they have negative long-term consequences. I'm not convinced, however, that there's any fraudulent intent behind these poorly designed programs.

[CaliforniaBeanin]

My DM and RDOs do this constantly, and they've been doing this for years. Here's a scenario that most people in Starbucks are all too familiar with.

1. DM tells his district that they have to reach absurd goals for given promo (ie 50 oatmeals a day). DM does nothing to support these goals personally, and tells SMs and Shifts that jobs are on the line.

2. A week or two of suggestive selling and sampling fails to bring sales to goal levels. Pressure increases.

3. Everything at oatmeal price level, or within 10 cents is rung as oatmeal. Daily sales shoot up, variances on oatmeals and incorrectly rung beverages go haywire.

4. Howard reports to shareholders "Oatmeal is our most successful food promotion ever! Things are turning around!"

5. Stock price inches up, thanks to fraud encouraged, perpetrated and willfully ignored by everyone above store level.

[drive]

One of our managers presses the "warming" button for every single transaction, because supposedly that gives us more labor.

[Georgia Latte]

In any company you are going to have people that cheat. The biggest problem with this is that those that don't (and fail to meet their goals honestly) look bad compared to those that cheat. I do know that if you are caught doing this you will get fired.

[anonymous]

Absolutely false, Georgia Latte. DMs are well aware that you can't sell 200 skinny lattes on 1 box of SFV.

These things are glaringly obvious, and its made so that in no uncertain terms, you HAVE to cheat to keep your job.

The regional offices arent concerned with profits, controllables, or performance, they're concerned with promo. Suggestive selling and sampling are good to an extent, but if a product isn't selling on its own merits, then promotional numbers shouldn't be emphasized over everything else, including turnover and morale.

The only interaction most shifts ever have with their DM is when he's nagging about promo. It seems that so much time, energy, and company resources are being devoted to a shell game.

[klbarista]

incorrect ringing of anything is an issue. If you have a slow or new cash barista, they don't enter the type of milk, syrup substitutions or even the syrup choice for a skinny latte. We even enter "cup of water" so we can track our labour/cups on the freebies. I do think warming on everything is silly... but if people want a warm cooky, you should enter it so labour can be more accurate IF your manager is using that information. Our store was apparently short a high amount of coffee, but we hadn't marked out several donated cambros, so pretty sure we were more accurate then the numbers showed!! I agree promos can be stressful but I find that by sampling, the word gets out there and people once they taste something for free, can make up their mind pretty quickly if they like something or not.

[SB Employee]

Exactly, focus is being lost on the consumer, quality of beverages, the employees, etc (things that should be at the top of the priority list). That is a straight ticket towards long run decline in profit.

I see me manager stressed out all the time, and why? Because he is worried he will lose his job over low numbers of promo. This encourages cheating which will spread and keep spreading. So what if promo sales are lacking? Employees can only do so much, it will be the service, quality and taste of the beverage that will be the real winners. I know that some suggestive selling and sampling will be needed to get the beverage's voice out, but it should not be to the extent that promo is the top priority, but it's not. And so the cheating rolls in which will keep the outrageously ridiculous numbers to sell stationary and possibly rising. Someone needs to stop for a second, look what is going, listen to customers as well as employees on the store level and realize that Starbucks is headed down the completely wrong path for profit.

[GRTL]

I can see this happening tomorrow with the roll out of the Strawberry Banana Vivano (we won't call it smoothie) Smoothie!!!!!!! It tastes awful but we better make sure we meet the daily goal.

I know this ringing items incorrectly happens with every promo at my store and nothing happens...

[MJ]

Everyone knows this is happening. District and regional management don’t care as long as goals appear to be achieved. If, on the other hand, they get any flack for sales and product variances then jobs will be on the line. They will find scapegoats.
District and regional management are glad this is happening because it makes them look better-who cares if it’s all a lie. My DM knows her stores break the rules and she hasn’t said anything about it. She most definitely hasn’t discouraged it. Integrity has not been a part of Starbucks for years now especially at an upper management level. This has just now filtered down over the last year to the store level because it is impossible to meet the ridiculous goals management sets for us. They give us an impossible job and hold us accountable to do it. The only way to accomplish this is to lie. They’re the bosses, so I’ll lie. I don’t like it but I have no choice. I have to play the game according to their rules. They used to pay me to be genuine, welcoming, knowledgeable, involved, and considerate. I guess they need to add dishonest and fraudulent now. Oh well, they still sign my check.

[vivavia]

I'm sorry, but I would never ring something as a promo item even if it costs the same. I'm a big fan of getting my receipt and tracking my spending and as a customer I wouldn't understand the reason behind ringing my venti chai as a pairing. If my manager ever asked me to do this, and told me my job was on the line, I don't think I would change my opinion either.

[Mauddib]

I have never understood why we have to care so much about the new promo's. If your sales are there that should be the end of it. Who cares what you sold to get your sales where they should be.

[BAYAREABUX]

I totally agree that this needs to be stopped for the good of the company, but I still see it happening in my store and others on a daily basis.

Breakfast pairings are by far the worst offenders. My DM's directive was that every customer must be asked if he or she is having a pairing today, no matter what the customer wants, or the barista gets a corrective action. Grande caramel frappuccino? Sure you don't want a tall coffee and a breakfast sandwich?

Suddenly grande frappuccinos became pairings because we were tired of catching hell EVERY DAY from the DM for not hitting the pairing numbers.... even though converting customers to pairings DROPS our average ticket because they're already buying more expensive items.

White mocha pairing for regular price? Just say yes! Blueberry coffee cake? Apple fritter instead? Spinach wrap? Please hit the pairings!

Hopefully this will change soon with better inventory tracking, but I agree with Ex FLA SM -- this has been part of company culture since the Vivanno launch, and it's sickening.

[CamSpi]

Pairings anyone?

[jabanga]

american corporate culture is infested with disease. if alternative approaches to the way we conduct business are not implemented soon the economic malaise we are suffering through now will yield to a complete collapse. the priorities as they now exist are all screwed up.

[northwest ned]

after pushing oatmeal pairings for months they are no longer part of the pairing menu.....joy

[Diggs]

I'm so glad I quit starbucks. This is the reason why. Why would you want to get paid 9 dollars an hour, to get treated like a machine by some jerk behind a curtain? F THAT.

I kinda look at it like this, Starbucks doesn't pay for promoting things really,(ie commercials, internet, tv, newspapers). So they try to squeeze this out of their minimum wage workers, it's not fair. If you work as a barista, or even a SS, and are being threatened for not promoting items, quit your job, I'd rather shovel crap than work for these jerks another minute.

[so much trouble]

I've told this story before. Here's it again.

I had a DM make us sell Via at our store which is kinda close to a test market. We had to ring it as a sbux card and then call another store in the district that was selling Via. They would take the number off of the back of the gift card and ring it there. No one communicated that's what we were doing. The opener the next day when called and asked about the sales didn't know what the DM was talking about. The DM blew a gasket. The opener didn't know where the card was. The DM thought there was a lot of money on the missing card. The mid from the previous day lied and told the DM that they had sold a bunch already. The mid actually didn't sell any and the closer sold one. So the opener found the card that was just sitting out next to a register. Ran a balance check and there was only one box worth on it. The DM is flipping out because they think there's more like $100 on it because of what the mid had said. After taking inventory of what we had on hand it turns out that only one box had been sold and it matched up with the gift card. So all the lying and cheating caused nothing but trouble. Shame on them.

What do you think would have happen if a partner called about it? Would the DM or person calling get in trouble?

[LEGENDARY OR BUST]

so much trouble, I have a hard time following your story. Care to expain once agaian?

[triple_short]

thank god i have an awesome DM and manager. can't believe some of these stories. i would quit in a second if my DM threatened corrective action for not suggestively selling pairings. that's ridiculous. this job is not worth that whatsoever.

[no clear answer]

are we suppose to charge the customer for white/mocha in ice coffee?

[stan]

@no clear answer

yes, and that's my drink. so i love it when people don't.

[dixiebarista]

This company has gone effin' psycho on 'upselling' the last couple of years.

we are annoying and alienating our customers big time.

I am a 7+ years partner and I no longer know this company.

In my store within the last year, 4 shift supervisors have voluntarily downgraded themselves. Nobody wants to be in charge.

Fire the manager because he/she doesn't sell X amount of pairings? Who will replace theM?

The Iced Coffee promtion -what a wonderful success that was!!!

We managed to convince many of our Iced Latte/Iced Mocha regulars that an iced coffee with milk and vanilla/mocha was a good alternative. What a great business decision!!

I'm so effin' glad that I no longer own stock in this company. The lucatics seem to be in charge!!

[Hopeful]

no clear answer - no - just "sub" the syrup. That's part of the IC promotion. You're subbing the WM for the CL.

[blarg]

I was told to stop ringing up ice waters because it brings down total sales.

[Melody]

@Hopeful & no clear answer: From the customer perspective, I'd totally expect to be charged for the white mocha sauce under those circumstances. It's a very different product than classic syrup.

Where is Mrs. Tillinghamshackles? She's very good at these kind of details.

Ringing problems: We know this problem of wrong ringing exists, both by accident and intentionally. (Though a few baristas may deny to me that it happens, I have no problem believing the pressure to sell promos causes items to be wrong up as something other than they are).

Missed cup discounts (Share Planet report shows that in 2008 only 1.3% of customers use a personal cup - Why so low? Some of that is missed cup discounts. It adds up when 40 million customers a week walk through your doors).

Bold coffee being rung up as "Brewed coffee" which makes PPR look much more popular than it is - this happens to me like 80% of the time. I assume it's accidental.

I'm sure there are other common problems ...

[Howzard]

all these acronyms I've never heard before. it's like scientology!

[Life Line]

The biggest problem that Starbucks has is poor management. From Chairman of the Board (HS) to DM. They have no idea what is happening or how to fix it. It is the worst run company I've ever worked for.

[brown dot]

White mocha/mocha are not to be charged in an iced coffee. You are to push sub and then the chosen syrup. They cost the same as raspberry or vanilla, so why would you charge a customer for them?

[no clear answer]

so....who's right? how do we find out?

[whatwhat]

I was always told to charge for Mocha and White mocha in iced coffee and to sub all of the other syrups.

[BOSTON STARBUCKS REBEL]

I never push the :iced" button because that does not create as much labor.

[BAYAREABUX]

Melody, the PIKE/BOLD buttons on the register were added specifically for the drive thru, where the order is printed on a label or put up on a screen, not to track customer coffee preference.

Managers really don't care since the amount of pike/decaf/morning pick ordered goes by total drip sales and they usually guesstimate how much decaf and morning pick to order by "knowing their business".

[Melody]

@Bayareabux - I've been told differently when it come to the Morning Pick/ Brewed Coffee button, since Starbucks does mine data from the registers. If they don't use the register data to track preferences, it seems like an unfortunate loss of an opportunity.

@whatwhat & no clear answer - I made the guess that YES you would charge for white mocha/mocha and sub other syrups (but not sauces) because these products seems to always be treated differently by Starbucks. For example, with the registered card benefits, syrups are a benefit but mocha sauce is not. Personally, I would expect to be charged if I wanted Iced Coffee with White Mocha Sauce, but if everyone here disagrees with me, I sure as heck am not going to argue further on it.

Just goes to show you how confusing all this is, both from the customer perspective and the barista perspective.

[former sm in ca]

You can call it fraud, or you can call it job security for the meatheads in seattle, rds, and dms. SInce no one in the Company has a backbone anymore(generally speaking), these types of "tactics" will be continually employed.

If I was a partner at a store where a manager/supervisor engaged in using the warming button on every item, or ringing up beverages as promo to inflate their numbers,for example, I would :

1. Call them out on it. If they continue, then:
2. Call the standard of business hotline.

What kind of example are you setting for your teams? Where is the integrity? Its flat out lying, and there was a time when this type of behavior wasn't tolerated. Not saying anything about these practices is almost as bad as doing them.

[.]

I first encountered this when my DM was sending me emails about why a neighboring store of similar volume was whooping us in the sale of (red) holiday beverages. I suspected mis-ringing of drinks so I went over to that store and went through their DT to investigate...Sure enough, I was not charged for what I ordered, but rather a promo beverage of equal price. Having found this, I replied to my DM's emails asking if he would like me to begin mis-ringing beverages as the neighboring store was. He neither replied with a yes/no answer nor sent out another email regarding my promo beverage sales (which were meeting target, just not blowing it away by 150%).

[Mrs. Tillinghamshackles]

I don't have time to post anything lengthy, and I will double check tomorrow, but I'm almost positive that we aren't supposed to substitute sauces (caramel, WM, M) for syrups.

[,,,]

@melody - you are more knowledgeable than 95% of the partners in my store, including the shifts. if you EVER need a job, i'll hire you in a second!!

[Sedg]

Happens all over the place. As does fudging cash holding logs and cash handling procedures. When I brought that to the attention of someone, I got canned because I admitted to doing it - at the specific order of those above me.

But yeah, the current emphasis on promo targets above all else does lead to inethical business practices - like ringing whatever you can as the promo item. Eventually someone will check the logistics logs and realise you only bought one box of whatever it was, which was auto-dropped to you when the promo starts, and you've somehow managed to turn that into 3,000 sales.

[SPORK]

If only Starbucks had the pay (and legal department) to get the calibre of people like Melody.

[flbarista]

no clear answer- my old DM made a big deal out of the fact that mocha/white mocha/pumpkin spice were 'sauces' and not syrups -- as such they should be charged for in iced coffee.

That being said, it drives me nuts when people incorrectly charge to add syrups to iced coffee. I specifically tell all of my customers that they shouldn't be charged ever for a syrup substitution in their IC.

Concerning Fraud -- Its rampant. Theres no easy way to deal with it, as people have said over and over. I was told by my DM that if anyone wanted any drink and a coffee cake to ring as a pairing and add the syrup -- chai, grtl, whatever. I'm not looking forward to meeting whatever insane Strawberry Banana Vivanno Smoothie goals are set up for us today.

Horray

[Bouncing Barista]

I'm surprised nobody has mentioned the fraud of filling out your own Customer Voice receipts yet...

I know TONS of SMs who do this one.

[Sedg]

Oh yeah, that one. As well as stores that save CV reciepts for favoured customers. But when fear is used as a motivator, you'll always find that some people will bend the rules in order to avoid the consequences.

[dixiebarista]

Fear IS being used as a motivator, big time! That, to me, is the biggest difference between my early years at SBUX and the last two.

I don't know if I've rung fradulent pairings or not, because the rules keep changing.

At first I'm told that chai lattes and cinnamon dolce lattes are not included in the pairings - the next week they are.

Then I'm told that we can substitute blueberry coffeecake if we run out of cinnamon swirl.

The following week we can substitute blueberry at any time - but there's no button for it.

I have no idea if they are 'legal' changes to the rules or if the DM/Manager/shift is making them up to help meet our goals.

But - I really don't care about any of this. I still enjoy my job most of the time, but I REALLY DO NOT LIKE THIS COMPANY ANYMORE!!

[Patrick]

It all comes down to this...pushing the promotional beverages/items does absolutely NOTHING to help the customer have a better experience at our stores! I see my fellow co-workers visibly making customers uncomfortable when they try to sell an iced mocha to a guy who simply wants a cup of coffee! It's blantent consumerism. I feel like I'm going door-to-door selling magazine subscriptions at times. If someone wants a hot mocha, give them a hot mocha for crying out loud! I have never ordered a supreme pizza and been told, "Are you sure you don't want a cheese pizza? We have to sell 60 a day even though you'd be spending more if you bought the one you originally ordered." This is madness!

[BOSTON STARBUCKS REBEL]

At Starbucks "innovation" means manipulating the truth so that it folds their mold for what they want.

[Will]

That might be the only thing you've ever said that I wholeheartedly agree with, BSR.

[!!!Answer me!!!]

Excuse me? Speak for your own regions/Districts.

My store gets pizza parties/gift cards/incentives if we meet our goals. Our Dm personally bought us them when we do meet goals.

Starbucks may be corporate owned, but it's its ATTITUDE varies by where you are most DEFINITELY!

[woah]

check your brm. no charge for syrup if any comes in it. so a V / H / R / Mocha is just a mocha, not a mocha ADD V, ADD H, ADD R.

Iced coffee has CL, so syrups are free in it... unless ya want to charge for caramel driz.

[Rudeness.]

I am seriously stunned at the attitude towards Starbucks here, sometimes. Starbucks has bad people in it, like EVERY OTHER COMPANY! Some stores I go to have very positive Baristas and my sister has never once complained about Starbucks itself.

[SBUCKS DRONE LOS ANGELES]

Wow, threatening baristas to sell pairings or else? Incredible. What kind of company are some of these corrupt DMs and SMs running? This is absurd, I know desperate times call for desperate measures, but you have to be kidding me. I am very fortunate to work in district where we are encouraged(and rewarded) to do well as far as sales go, but NEVER threatened to force disgusting pairings down customers throats. It makes me sick that some of these "powers that be" are running the company like some kind of Gestapo. Shame on all of you that are doing this. Sure, times are tough, but to threaten partners to sell pairings or else face the ultimate consequence? Pitiful.