M512MARKETINGSTRATEGY

Starbucks:Delivering
CustomerService
AlkisMarangos

Ihaveneithergivennorreceivedunauthorizedaidonthisassignment

1. WhatfactorsaccountedforthesuccessofStarbucksintheearly1990s?Whatwasso
compellingabouttheStarbucksvalueproposition?
ThesuccessofStarbucksintheearly1990scanbeattributedtoHowardSchultzsvisionof
the Starbucks brand. Schultz inspired of a company which would make the customer the
centreofitssuccessandwouldchangethecoffeedrinkingexperienceintheU.S.Inorderto
achievethis, Schultzsuccessfullyutilizedhishuman resourcesbyestablishingbenefitsthat
wouldforcethoseresourcestocreatevalueintheprocessofthecoffeedrinkingexperience.
Starbucks was successful because it placed value to the customers first in its value
proposition. Following is a number of factors that accounted to Starbucks success in the
early1990s:
a. Atmosphere: Schultzs idea was to make Starbucks Americas third place. By
recreatingtheItaliancoffeeculturehemetinMilan,hemanagedtomakeStarbucks
a place where people can enjoy their social interactions, relax, or just spent some
timebythemselves.Inessence,theStarbucksideachangedthenormfrombuying
coffeeasadrinktotheexperienceofenjoyingcoffee.PeopleviewedStarbucksas
aplacetheywantedtobeatandtheyspentasmuchtimeastheycouldinthestores.
It was an uplifting experience that was complemented with the layout designed to
provideaninvitingenvironment.

b. Coffee quality: Starbucks strategy was to open only companyowned stores and
avoid franchising. This enabled the company to keep full control of quality of its
productsandservices.Atthesame,Starbuckstriedtocontrolasmuchofthesupply
chainaspossibleinordertokeepthequalityofcoffeeathighandconsistentlevels
by working with growers and enforcing coffee standards. These two strategies
enabledStarbuckstodeliveronthefirstcomponentofitsvalueproposition;quality.

c. Service: Partners were trained on both hard skills and soft skills when hired to
workforaStarbucksretailstore.Thisequalemphasisonthehardandsoftskills
further highlighted Starbucks strategy to make the experience pleasant for the
customer.Thesoftskillswereawaytoteachthepartnersonhowtoconnectwith
the customer, by establishing eye contact, smiling and greeting them with their
nameswhenthecustomerswereregulars.InadditiontothattherewasalsotheJust
SayYespolicyforwhichthepartnerswentbeyondcompanyrulesinordertosatisfy
the customers. These again created a friendly environment for customers who felt
special and in combination with the two points mentioned above increased their
customersatisfaction.

d. Partnersatisfaction:SchultzsbeliefwasthatiftheStarbucksemployeeswerehappy,
then this would lead to higher customer satisfaction. For this reason, Starbucks
partnerswereamongthehighestpaidhourlyworkers,theyenjoyedhealthbenefits
and they had stock options. This resulted in one of the lowest employee turnover
ratesintheindustryandaconsistentlyhighemployeesatisfactionrate.Furthermore,
the majority of promotions for Starbucks were within its own ranks. Even though
thereisnoevidencethatthesatisfactionofpartnersledtocustomersatisfaction,it

wouldbesafetoassumethatthelowemployeeturnovermeantthatpartnersstayed
at their positions for longer time, were more experienced in treating the customer
andcouldprovideafasterservice.

e. Specific target audience: Starbucks coffee in the 1990s was targeted primarily
towards the affluent, welleducated, whitecollar people. Being able to attract such
an affluent demographic and serving them by providing superior service, helped in
being able to provide the service at a consistent level and keep the customers
satisfied.

f. Attractivemarket:TheconceptofStarbuckswasnewandthenotionofturningthe
coffee drinking into a social experience was almost unexploited in the U.S. In the
early 1990s Starbucks did not face fierce competition. The absence of the above
concepthelpedStarbuckssucceed.
Starbucks value proposition is compelling because it places the customer and the service
delivered to the customer above everything else. Even though Starbucks is a retailcoffee
store,thevaluepropositionisnotaboutthecoffeeexclusivelybutaboutthecoffeeculture
and the experience of drinking coffee. With its value proposition, Starbucks moves away
from the tangible benefits that the coffee offers, such as taste, stimulation, alertness and
concentrates on the quality of its coffee and the intangible benefits of the experience of
drinking Starbucks coffee. Starbucks value proposition is not about coffee, it is about the
experienceofdrinkingcoffeeinaStarbucksstoreintegratingtheproductwiththeemotional
benefits.

Service

Coffee

Starbucks
Atmosphere

2. HowdoestheStarbucksof2002differfromtheStarbucksof1992?
The Starbucks of 1992 marked the beginning of the establishment of the brand. In 1992,
rightwhenthecompanybecamepublic,Starbuckshad140storeslocatedintheNorthwest
andChicago.Tenyearslater,in2002,Starbuckshadover4500storesscatteredthroughout
the U.S and internationally. During those ten years, Starbucks established itself as the
number one coffee store in the U.S by following an expansion strategy. Starbucks had
locations in 42 of the 50 states and was continuing this expansion strategy in order to
capture new markets and cluster existing markets. Starbucks retail expansion strategy
consistedofthecompanyselectinglocationsbasedonwhetherthedemographicsofanarea
matchedtheprofileofatypicalStarbucksdrinker,thelevelofcoffeeconsumptionandthe
nature and intensity of competition. An important component of this strategy was that
Starbucksdidnotmindcannibalizingthesalesofitsstoresaslongastheincrementalsales

resultingfromtheopeningofanewstorewerehigherthanbefore.Theretailexpansionhas
ledtheStarbuckscustomerstoviewitasmorecorporateandcaringaboutmakingmoney.
Theestablishmentofsmallercoffeestoreswithoutloungingareashadalsotakenawaythe
atmospherecomponentofthevaluepropositionthattheStarbucksof1992hadbuilton.
TheStarbucksof 2002wasalsomore complexthantheStarbucks of 1992. In 1992, about
halfofthecompanyssalescamefromsalesofwholebeancoffeeswhereasin2002about
77%ofthesalescamefrombeverages.Thecompanyhadaddednewproductssuchasfood
items and new beverages in its menu and also sold equipment and accessories. The
beveragemenuexpansionalongwiththedrinkcustomizationledtopartnersspendingmore
time than before to prepare a handcrafted customized beverage. In addition to that, the
product innovation strategy through which the company introduced at least a new
beverageeveryholidayseasonmeantfurthermenuexpansion,additionaltrainingtimesfor
partners and possibly additional service times until a partner mastered the making of the
newbeverage.ThedrinkcombinationsthatcouldbepreparedataStarbucksin2002were
many more than the ones that could be prepared at a Starbucks coffee store in 1992,
makingthewholeprocessmorecomplexandthedeliveryserviceslower.
Another big difference between the Starbucks of 2002 and the Starbucks of 1992 was the
demographic profile of the customer base. In 1992, the customer base of Starbucks
consistedofaffluent,midtoupperclassprofessionalswhowenttoStarbuckstoenjoytheir
coffeeandthecultureofit.TheretailexpansionofStarbucksresultedinchangingthenorm
from customers going to the Starbucks to Starbucks going to the customers. The
customer base of Starbucks in 2002 was changing to a younger, lesseducated and with a
lowerincomedemographicprofile.
Finally,theStarbucksimagetothepublicstartedchanging.Theimageof1992consistedofa
placewhichyoucancallthirdplace,whereyoucangetthebestqualitycoffeeandwhere
youcanrelax.In2002,theimagehadchangedtoaconvenientplace,whereyoucanmeet
peopleandmoveonandthecoffeewasjustgood.

3. WhyhasStarbuckscustomersatisfactionscoresdeclined?Hasthecompanysservice
declined,orisitsimplymeasuringcustomersatisfactionthewrongway?
Unfortunately, with the data available it is extremely hard to say whether the companys
servicehasdeclinedorifthereissomethingwrongwiththewaythatcustomersatisfaction
ismeasured.Eventhoughtheevidenceshowsthatcustomersarenotassatisfiedasbefore,
thisdoesnotnecessarilymeanthattheservicehasdeclined.Itmightaswellmeanthatthe
expectations of the customers have been raised due to competition or marketing or any
otherexternalforces.Inordertomakeafairassessmentofthesituationhowever,Iwilltry
toexamineallpossibilitiesstartingfromthewaythecustomersatisfactionismeasured.
TheCustomerSnapshotmysteryshopperprogramisasubjectivemeasuretorecordresults.
If there is a more than one mystery shopper visiting a coffee store, then there might be
inconsistency between the different mystery shoppers regarding the definition of the
criteria.Forexample,itappearsthatthereisnotenoughexplanationastowhatexactlyis

definedasclean.Isastoreconsideredtobecleanwhenitappearstidyandsmellsnicebut
therearetwoemptybeveragesononetable?ForMysteryShopperX,thiscanbeconsidered
clean,butforMysteryShopperYthiscanbeconsidereddirty.Thisinconsistencycouldalso
bevisiblewithindifferentstores.Alotoftimes,amysteryshoppergoestothestorewith
thepredispositiontoexaminedifferentthingsduringhisstayinthestore.Inordertobeable
toseemoreconsistentresultsandbeabletocompare,Iwouldliketoseehowcustomers
would respond to certain criteria right after their Starbucks experience (survey outside
store).
OneotherthingthatIwouldliketoseeintheresearchisthebreakdownofcustomersby
numberofvisitspermonth.Eventhoughtheresearchbreaksdownthesamplebynewand
establishedcustomers,itwouldmakesensetoseewhatpercentageofthenewcustomers
areregularsandwhattheirattitudetowardsStarbucksis.Insteadwhatweseeisallthenew
customers clustered together and taking the average of them to determine the overall
opinionofStarbucks.Bothofthesearejustassumptionsastowhatcouldhavebeenwrong
withthewayStarbucksismeasuringitscustomersatisfaction.Again,theseassumptionsare
based on the evidence available in the case. Lets now see why the customer satisfaction
scoreshavedeclined.
Averypossibleexplanationtothiscouldbebecauseofthegrowingcustomerbase.Asitis
suggestedinExhibit8ofthecase,thelesssatisfiedcustomersarethenewcustomersthat
have visited Starbucks for the first time within the past year. On the other hand, the
establishedcustomers(firstvisitedStarbucks5+yearsago)appeartohaveabetteroverall
opinion about Starbucks. This does not necessarily mean that the service of Starbucks has
changed.Itrathermorecloselyleadstotheconclusionthatthenewcustomershavehigher
expectationswhichcouldhavebeenaresultofmoreinformationavailable,gettingusedto
the coffee experience culture, more competitors available. To make myself clearer I will
provideanexplanationofthiswithanexample.StarbuckscoffeestoreonIndianaAvenuein
BloomingtonIN.hasbeenofferingthesameconsistentlevelofservicetoitscustomerssince
itsopeningin1994.Allthecustomersaregreetedwiththeirfirstname,andallthecustomers
areservedwithin3minutesaftertheyarriveinthestore.Mr.Johnhasbeenaregularvisitor
of this Starbucks location since its opening and is extremely satisfied with the service. Mr.
Steve, decided to visit Starbucks for the first time a few months ago, towards the end of
2001.Mr.StevewasaregularofDunkinDonutswherehewouldbegreetedeverydaywith
his first and last name, the barista knew exactly what beverage he wanted, and he was
alwaysservedwithintwominute.Mr.SteveisnotsatisfiedwiththeStarbucksserviceeven
thoughtheserviceatStarbuckshasbeenthesameforthelast8years.Thisexampleshows
that even though Starbucks could have been consistent in its service, it has added a new
customer(Mr.Steve)toitscustomerbasewhoisnotassatisfiedbecausetheservicedoes
notmeettheexpectationsMr.Stevehadacquiredfromusingacompetitor.
Lets also examine now, possible reasons that could have resulted in actual declining
customer service of Starbucks. When Starbucks evolved as a business it set the standards
veryhighforitscustomersthroughitsvalueproposition.Eventhoughthecompanyinitially
managedtomeetthesestandards,theretailexpansionandtheproductinnovationstrategy
thatthecompanyfollowedalongwiththecustomizationofthedrinkshadaharmfuleffect

onallthreecomponents(coffeequality,service,andatmosphere)ofthevalueproposition
which had led to the declining effects of customer satisfaction. The image of the brand
changed.Thestorewhichusedtobeknownasthethirdplace,aplacewhereyoucould
relaxandenjoyyourcoffee,wasnowappealingtoamuchlargertargetmarket.Itwasthe
store for everybody. In the past customers were paying a premium for the Starbucks
experience, but now Starbucks was not anything special. In the mind of the consumer,
Starbucksbecamethenorm,aplacewhichwaseverywhere,withgoodcoffeeandconsistent
service. The loyal customers lost the touch they had with the brand; there was no reason
anymore to pay a premium for a good coffee when they could get it anywhere else for a
lowerprice.
Starbucks had about 150% increase in retail stores from 1998 to 2002. By geographically
clustering markets, Starbucks was compromising the atmosphere aspect of its value
proposition. Many stores built were small and did not have seating or lounging place.
Therefore,the upscaleyet inviting environment thatthe company promised with itsvalue
propositionandwhichbroughtalotoftheloyalcustomerstothebusinessdidnotexistany
more.
The beverage customization, the addition of new items on the menus and the rapid retail
store expansion had an adverse effect on the other two important aspects of the value
proposition.Eventhough,thereisnospecificevidencecitedinthecaseregardingthequality
of thecoffee,I find it almostimpossiblefor acompanytoexperienceamore than 3000%
expansion in its stores within 10 years and not deteriorating at least some of its product
quality.AsIdonothaveenoughdata tosupportthis,Iwill maketheassumptionthatthe
additionof thenewitemshad aneffectinsacrificingat leastsome ofthe qualitythatthe
Starbucksbrandgavetotheconsumer.AsStarbuckswascaffeinatingtheworld,itmeant
thatproductsalesincreasedthroughoutthecompany.Statisticallyspeaking,theprobability
ofaproductbeingsoldlackingthenecessaryqualitywashighest.InthemindofaStarbucks
consumeroranyconsumerabadexperiencesticksout.
The other component of the value proposition, the service was also hurt. The customer
intimacy that helped build the loyal customer base of Starbucks did not exist any more.
Starbucks proudly stated that they delivered on service and that they only hired partners
that had the ability to balance hard and soft skills and deliver on that service. As the
customer base was growing and the complexity of the drinks increased it seemed almost
impossible for the partners to deliver on those soft skills. The customized drinks slowed
down the process of delivering the beverage to a consumer and added tension to the
partners,makingthemloseontheirsoftskills.Alotoftheservicevaluewasalsolostonthe
inconsistency. The saturation of markets with retail stores meant that customers might
purchase their coffee from different Starbucks stores that were convenient at the time of
purchase.Ifthatwastrue,thenitispossiblethatcustomerscouldseeaninconsistentlevel
ofserviceinstoresthatdidnothavetherightpersonnel.
At the same time, competition from small, specialty stores increased. As the Starbucks
market research revealed, a lot of small, independent coffee stores were perceived by
customerstobewhatStarbuckswasandtodeliverwhatStarbucksdidinthepreviousyears.

Infact,theStarbucksmodelasdescribedthroughStarbucksvaluepropositionwasveryeasy
to imitate. Starbucks was facing fierce competition not from another chain, but from any
small,independent,specialtystorethatwaslocatedtoacloseproximitytoStarbucks.These
competitors were more likely to offer the extraordinary service and the atmosphere that
Starbuckshadpromised.Inadditiontothat,theimageofStarbuckshadchangedinthemind
of the consumers who saw the fast expansion of Starbucks with the addition of stores
everywhere,asawayforthecompanytomakemoremoney.
Looking at the three factors which could have resulted to declining customer satisfaction
levels (a. bad research methods, b. consistent level of service but changing needs of
customers,c.actualservicedecline),Iammoreinclinedtobelievethatthelowerscoresare
a combination of changing expectations of new customer base and actual service decline
(Exhibit1).Eventhoughtheremightbesomeflawsintheresearchmethods,Idonotthink
that they are that inconsistent to disprove that the customer satisfaction levels were
declining.

4. DescribetheidealStarbuckscustomerfromaprofitabilityperspective.Howvaluableis
ahighlysatisfiedcustomertoStarbucks?Whatwouldittaketoensurethatthis
customerishighlysatisfied?
TheidealStarbuckscustomerfromaprofitabilityperspectiveistheloyalcustomerwhovisits
thestoreonanaverageof18timespermonth.Ifweacceptthatthereisahighprobability
ofcorrelationbetweennumberofvisitsandsatisfactionlevel,thenitissafetoassumethat
this ideal customer who visits 18 times per month is also a highly satisfied one. Using
company data, obtained from customer satisfaction data, this customer spends $4.42 on
average on every visit and its average customer life is 8.3 years. Taking this into
consideration,thentheidealStarbuckscustomerbringsanaveragerevenueofabout$954
peryearor$7924overitslifetime(seeExhibit2).Usingthesamecustomersatisfactiondata
and assuming that a highly satisfied customer visits a Starbucks coffee store 7.2 times a
month,thentheaveragerevenuethatthiscustomerbringstoStarbucksisabout$381per
yearor$3169overitslifetime.Ideally,thiscustomerpurchaseseitherreadymadeproducts
oreasytomakebeveragessothatitdoesnottakemuchtimeforpartnerstogethimoutof
theserviceline.Sincethereisadirectlinkbetweencustomersatisfactionandloyaltywhich
eventually leads to higher profits, then Starbucks should work on raising the satisfaction
levelsofitscurrentcustomerbaseormakingthemvisititsstoresmorefrequently.Basedon
therankingsofthekeyattributesthatcreatecustomersatisfaction,Starbucksshouldensure
that its stores are kept clean all the time. This can be done by engaging partners into
cleaningthestoresandevenhelpingcleanthetableofacustomerwhentheyhaveavailable
time. Starbucks should alsoplacemoreemphasis in itspartners utilizingtheir softskillsto
treatthecustomersasvaluable.
Starbucks can also try to promote its storedvalue card (SCV) more. The SVC not only will
help its cardholders to experience reduced transaction times which translates to faster
service and therefore higher satisfaction, but it also motivates the customer to visit

Starbucks more often. At the same time, Starbucks can gather and use the customer
transactiondatatoimprovetheexperience.
AnotherthingthatStarbuckscandotoensurethatthecustomerishighlysatisfiedistotry
to deliver on its value proposition. It should make sure that the service is as fast as the
customerwantsittobe,thepartnerswillremembertogreetregularswiththeirfirstname
andthequalityofitsproductswillbeofthehighestlevel.Thismightrequireaninvestment
from the company, whether that translates to more labor or better training or even
withdrawing products from its menu. At the same time, adding lounging areas and more
comfortablechairscanencouragecustomerstofeelmorerelaxedwhileinthestore.Larger
tables and power plugs to accommodate laptop use will also not only lead to higher
satisfaction but also to higher revenues through use of the TMobile Hotspot wireless
internetservice.

5. ShouldStarbucksmakethe$40millioninvestmentinlaborinthestores?
First lets examine what needs to be done for Starbucks to get a positive return if they
decidetoproceedwiththe$40millioninvestment.
If Starbucks makes the $40 million investment in labor for its 4574 stores, the investment
comes to be about $8,750 for each store. Since the goal of this investment is to increase
satisfaction lets see how this translates into number of customers that need to go from
beingsatisfiedtobeinghighlysatisfied.FromExhibit3wecanobservethatthedifferencein
revenueperyearfromahighlysatisfiedtoasatisfiedcustomerisabout$172.Thatmeans
thatinorderforStarbuckstobreakevenforthisinvestment,itneedstoturn50customers
(8750/172)frombeingsatisfiedtobehighlysatisfiedineachofitsstores.FromExhibit3in
thecaseweknowthattheaveragedailycustomercount,perstoreis570.Thismeansthat
Starbucksneedstoturn50of570or9%ofitscustomersfromsatisfiedtohighlysatisfiedin
order to break even. There are however some major assumptions that are being made in
this case. First, the assumption is that speed of service is the number one driver for
satisfactionandthattheadditionallaborwillprovidetheincreaseofspeedofservice.Thisis
not true however. As we can see from the rankings of the key attributes by Starbucks
customers, fast service ranks #6 in importance. A second assumption is that all stores are
equalinsize,numberofpeopletheyserve,locationandpricesandthatallthestoresneed
thisadditionalinvestment.Afinalassumptionisthatsatisfactioniscorrelatedwithloyalty
andthatifasatisfiedcustomerbecomeshighlysatisfiedthenthenumberofvisitspermonth
tothestorewillincreasealongwithhisticketsize.
If customer satisfaction does not increase, an alternative breakeven venue for Starbucks
wouldbetoacquirenewcustomers.Inthiscase,anadditional7customersshouldcometo
eachstoreeverydayas aresultofthisinvestment.Thistranslatestoan additional 32,000
customers per year for all stores. Alternatively, if the number of customers remains the
same,$0.05additionalshouldbespentbyeachcustomerineachvisitinordertobreakeven
(seeExhibit4).

Since there is a link between customer satisfaction, loyalty and average ticket size, then if
the investment will increase the customer satisfaction it would make sense. There is no
questionthatincreasedcustomersatisfactionwilltranslatetomoresales.Thebigquestion
howeveriswilltheinvestmentleadtoincreasedcustomersatisfaction?
Based on the companys research, it is evident that only 10% of the Starbucks customers
have asked fora faster, moreefficientservice. Even ifthe $40 million investment is made
and customers get a faster service, there is a big risk in losing value in some of the other
perceptions. Having more partners in a specified work area might lead to the risk of less
friendlier,lessattentivestaffandmightalsoriskthelossofthepersonaltreatment.Iteven
appears impractical and inefficient to allocate the $40 million investment equally to the
4574stores.Itwouldmakesensetoallocatethemoneybasedonsizeofstore,numberof
customers, location and need for additional labor. There would be no need to invest in a
storewhereallcustomersarehighlysatisfiedandtherewouldbehigherneedtoinvestina
storewherethereisahighpercentageoflesssatisfiedcustomers.
Basedontheaboveassumptions,IbelievethatStarbucksshouldonlyinvestthemoneyin
laborwhereverneededandinwhatamountneeded.Agoodwaytodothatwouldbetodo
a more thorough analysis of its customer base and identify areas where people are less
satisfiedbecauseofthespeedofserviceandtheninvestinthoselocationsonly.Hopefully
theadditionofextralaborinthoselocationswouldeliminateproblemsassociatedwithfast
serviceandtreatingthecustomerasvaluable.
At the same time however, I believe that there are far more important investments that
needtobemadeandpartofthat$40millioncouldbeusedforthoseinvestments.Asafirst
step,itwouldbeagoodideatoestablishaninternalstrategicmarketinggroupthatwould
coordinate actions of the market research group, the category group and the marketing
group.ThiswouldgivetheopportunityforStarbuckstogetfasterfeedbackfromcustomers,
and be proactive instead of reactive. As 77% of the companys revenues came from
beverages which were handcrafted and since there was a problem with service times, the
company could find other ways of increasing its productivity at the point of making the
drink,suchasinvestinginnewmachinesorremovingunpopularbeveragesfromthemenu.
Themoneycouldalsobespentonbettertrainingofpartnerssoftskillsinordertoensure
thatthecustomersaretreatedthewaytheStarbuckshaspromisedthemthattheywould.
Concluding,Iwouldliketoaddthataninvestmentinaddingmorelabortostoresmighthelp
thecompanyincreasesomeofitssatisfactionlevelsandmaybeevengetagoodreturnout
of it, but from the data available in the case it appears that Starbucks has a lot of other
problems that needs to tackle. They need to reevaluate their value proposition, examine
howtheirexpansionstrategyhasledtothedeteriorationoftheirbrandimageandfindnew
waystosatisfythecustomer.

Exhibit1
ChangeofCustomerExpectationsandCustomerServiceforStarbucksfrom1992to2002

CustomerExpectations

CustomerService

2002

1992

Exhibit2

NumberofStarbucksvisits/month
Averageticketsize/Visit
Totalrevenue/month
Totalrevenue/year
Averagecustomerlife/years
Totalrevenueovercustomerlifetime

HighlySatisfied
Customer
7.2
$4.42
$31.82
$381.84
8.3
$3169.27

IdealCustomer
18
$4.42
$79.56
$954.72
8.3
$7924.18

Exhibit3

NumberofStarbucksvisits/month
Averageticketsize/Visit
Totalrevenue/month
Totalrevenue/year
Differencebetweenrevenueof
SatisfiedCustomervs.HighlySatisfied
customer

SatisfiedCustomer
4.3
$4.06
$17.46
$209.50
$172.39

HighlySatisfied
Customer
7.2
$4.42
$31.82
$381.89

Exhibit4

Currentsituation

Averagehourlyrate
Totallaborhoursperday,
averagestore
Laborcost/day,averagestore
Averageticket
Averagedailycustomercount
Revenue
RevenueLaborCost

$9.00
51.4
$462.6
$3.85
570
$2194.5
$1731.90

Breakeven
customercount
$9.00
54.3

Breakeven
ticketsize
$9.00
54.3

$488.70
$3.85
577

$488.70
$3.90
570

$1731.90

$1731.90