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Costa Coffee- Heathrow Terminal 4 Airside Issues In Operations & Recommendations
BY SACHIN BABAN SHINDE COURSE- MBA (Hospitality Management) STUDENT DATA NUMBER-713520 Tutor – Seth Louis Subject – Operations Management
Sachin Baban Shinde -713520
Operations Management Issues-Costa Coffee
Out of hundred percent 86% of arabica and 14% of robusta. Both the roasting process and their special blend Mocha Italia are mainstays of the Costa business today. Italian brothers Sergio and Bruno Costa started a wholesale operation supplying roasted coffee to caterers and specialist Italian coffee shops. who are trained the Italian way at our dedicated roastery. the roasting operation moved to Old Paradise Street in Lambeth. 3.Introduction The Costa Story In 1971. The Costa brothers opened the first Costa store in London in 1978 and growth expanded at the rate of two stores per year with the help of their family and friends in the business. 4. With huge growth over the 1990's the company had increased to 186 stores by 1999 and in 2000. WHSmith and Homebase stores. Sachin Baban Shinde -713520 Operations Management Issues-Costa Coffee Page 2 . This is offered through the partnership with Cafédirect. we use our own specialist Baristas in all of our stores.7 million cups of coffee were sold each week.Hotels and very important airports. Costa is now the leading UK branded coffee shop with over 300 stores and host units in a number of complementary retail outlets. In 1988. With the new roaster. 5. including selected Ottakers and Waterstones bookstores. the brothers established Costa's unique roasting style.less bitter flavour and a specially developed espresso blend was created of six parts arabica and one part robusta to create Costa's unique taste. Costa produces the best blends of coffee using 6 different parts arabica beans and 1 part robusta. Costa's own Italian accredited Master Roaster. Costa coffee is made by hand. rather than by the automated coffee machines used in some other chains. currently oversees the roasting of approximately 35 tonnes of coffee per week. Costa offers customers a Fairtrade coffee option. which can be requested for any of our coffees. In addition to this all the traditional and Earl Grey teas are from Teadirect. which can produce a bitter taste Costa has 30 years Italian heritage perfecting the art of coffee making Costa source and buy their own beans from all over the world 3. 6. capacity will nearly double to 65 tonnes per week. At Costa. Facts and Figures today 1. Costa coffee makes the best quality coffee because: • • • All Costa coffee beans are slow roasted for 22 minutes to ensure a smoother flavour than quick roasting. Drawing on their Italian background and Sergio's experience of blending and roasting coffee in Parma. Developments such as the new roaster were crucial to Costa. 7. London. Beans were slow roasted at reduced temperatures to produce a fuller. where the roaster and green beans (those waiting to be roasted) are stored. Costa is the largest chain of branded coffee shops in the UK with over 800 outlets 2.
coffee grinders. storage containers. roasted whole bean coffees. Costa card. Travel tumblers. fruit juice.Products Beverages: Brewed coffees. tea products. and Muffins Non food items: Mugs. Sachin Baban Shinde -713520 Operations Management Issues-Costa Coffee Page 3 . pastries. cold blended beverages. coffeemakers. Food: Sandwich.beer. Cakes.Italian-style espresso. seasonal novelty items. aerated cold drinks.wine. Paninis.
strong and black coffee.beer and wine which is not available in a normal costa coffee shops. one for refilling the display of food and drinks Operations Management Issues-Costa Coffee Page 4 Sachin Baban Shinde -713520 . ESPRESSO DOPPIO A double espresso shot. even shorter than an espresso. It is not as strong as a cappuccino MOCHA Espresso with hot chocolate. ESPRESSO A short.The Costa Coffee Coffees. frothy milk. one for toasting the sandwiches. mixing shots of espresso with hot water. Add milk as per customer requirement CAPPUCCINO Coffee combining espresso with steamed. It operates with two tills and two coffee machines. topped with steamed. frothed milk. It does an average transaction of 1700-2000 transactions daily. with no milk. For those who like it strong. Because it is on airside it sells spirits. MACCHIATO Espresso topped with just a dash of milk. with an even stronger flavour. AMERICANO Coffee.30pm in night Its one of the shop of costa coffee which generates maximum revenue with average sale of minimum £6000 daily. Information about the Costa Coffee Heathrow Terminal 4 This shop on heathrow terminal 4 is located in airside near gate 8 opposite to world duty free. It has a staffing of 23 including the store manager. It opens 4am in morning till 9. Chocolate powder on top as per customer request. During operations in busy period the division of staff is as follows Two people on till Two people on coffee machine. CAFFE LATTE Coffee made with steamed milk. RISTRETTO An extra short coffee.
One for cleaning and clearing the tables One on the dish washing machine Layout Diagram Of Costa Coffee and its Step by Step Process of Operation Sitting Area Hand out Area Til l 2 Coffee Machine Drink s Displ ay Food Displ ay Fridg e Gri ll Frescato Office Fridg e Que/Line Divider Past ry Disp lay STEP 1 Entrance Coffee Machine Hand out Area STEP 4 Til l 2 STEP 5 STEP 3 STEP 2 Drink s Displ ay Food Displ ay STEP 6 Sitting Area Sachin Baban Shinde -713520 Operations Management Issues-Costa Coffee Page 5 .
Explanation of Steps in the Process Step 1 Customer come and stand in the line/que Step 2 Customer chooses and takes food or drink from the display Sachin Baban Shinde -713520 Operations Management Issues-Costa Coffee Page 6 .
Step 3 Customer goes to the till to order his/her coffee.pastry(cakes. Step 4 Sachin Baban Shinde -713520 Operations Management Issues-Costa Coffee Page 7 .muffins)to sit in or take away and if he has a Panini to toast he give it the person on the till.
cake in the right plate with right cutlery as per the order. Person at the till takes money/Card from the customer and completes the transaction. The person on till right away give the coffee order to the barista and give the Panini to the person who he toasting the sandwiches and give him his/her sandwich number so that he does not have to wait until the sandwich is toasted and it will be served on the table. Sachin Baban Shinde -713520 Operations Management Issues-Costa Coffee Page 8 . Step 5 While barista is making coffee the person on the till sets the customer’s tray like putting the right saucer’s and spoons for the cups and glasses in which the coffee is being made serving any pastry.
Step 5 Coffee is made ready by the barista he place it on to the tray or in take away cups and the customer takes it from the handout counter next to the coffee machine. Step 6 Customer takes coffee from the handout counter and go to the sitting area and enjoys his coffee Sachin Baban Shinde -713520 Operations Management Issues-Costa Coffee Page 9 .
Sachin Baban Shinde -713520 Operations Management Issues-Costa Coffee Page 10 .Issues in the Operations As costa coffee has their own service standards and service process the time take to serve a customer is 3-5 minutes which is time consuming for a place like airport where there is high turnover. In comparison to starbucks which takes 1 to 1 and half minute to serve a customer which is more fast and efficient.
Being on airport airside its a high security zone area because of this the delivery of products takes lot of time as it is scanned and checked by the airport security authority.lids materials the staff can not get it from from other costa shops or store as if it would have on a normal street.many times due to technical difficulties and bad weather conditions flights are late or cancelled because of this the airport is busy as well as the costa coffee shop and during this time coffee shop runs out of many food and drink items.it has a dry storage room but three floor down the shop which is a big disadvantage during the operations if something is finished or runs out then the staff has to go down three floors and get it which is very time consuming. During busy period and big queue’s there should be a person specially assigned to go to the customers in the queue and take coffee orders and give Sachin Baban Shinde -713520 Operations Management Issues-Costa Coffee Page 11 . As its on airport there is a big queue all the time it become very difficult to manage the queue in busy period as people have to wait some time for almost 15-20mins and he gets frustrated. Recommendations/Solutions for smooth operations Costa Coffee should redesign their service model/standards according to the location of the coffee shop to have more quick and efficient service during operations rather than sticking to old service standards which is more time consuming. Due to shortage of staff it is very difficult to serve the customer in regular ceramic cups and glasses as there is no person to work on dishwashing machine so the customer is served in take away cups which is not desirable and not as per costa standards but due to practical difficulties you have to work in this way. Due to airport and high security zone the storage area is very less specially storing of perishable items such as milk and food items like sandwiches. On airport its very difficult to forecast the number of customers that will be served in a day. Due to high security zone if the coffee shop run out of any food and drink stock or non eatable items like takeaway cups. In coffee making shops the main ingredient is milk which some time is short or runs out and becomes difficult to get it from outside due to security reasons.paninis. Manager faces difficulties to make duty rota’s as he cannot forecast which period of the day will be the most busiest and he can put more staff on rota during that shift and the operation runs smoothly. There is a lot of staff turnover and to employ a new person on airport airside is very difficult as it requires a special pass to be made which is time consuming as the person has to show his past five years reference and then verified it really takes a long time up to three to six months.
uk/coffee/the_coffee.aspx Sachin Baban Shinde -713520 Operations Management Issues-Costa Coffee Page 12 .as a result if there is a shortage of staff on airport shop staff from other shop and go and work making the operations more smooth. During busy period manager should deploy right people at right places to perform the job more efficiently.uk/coffee/costa_story. the orders in advance to the barista and get his sandwich toasted so that till time reaches the till his coffee and sandwich is ready for him to consume hence making him feel happy that he is being treated special.aspx http://www. Costa should focus on quick and faster service because it is airport by operating both the tills and coffee machine all the time. Enough area should be give to storage when designing of store specially cold store other important materials so that more things can be stored for the high revenue generating stores like on airport. On airport people really don’t have time to enjoy and relax as they have to catch the flight so they have very short time. Staff should be provided with free meals during shifts to keep them happy and avoiding them from leaving the job.co.costa coffee on airport is suggested to more focus on serving on take away cups rather than investing in ceramic cups and glasses hence using the person working in dish washing in some other productive area during busy operations.costa. Company should make the airside side pass for permanent staff working outside airport which is a very long procedure. Company and the Manager should keep the staff as happy as they can to avoid staff turnover as it takes a long time to recruitment a new person on airport airside.co. Manager should keep same number of staff on every shift to perform the operations smoothly. During bad weather and flight cancellations its a big opportunity for the coffee shop to earn more revenue but as a result of high consumption of milk to make coffee’s the milk runs out as an alternative to this the manager should have good relationship with the similar food and drink shops from where the milk or any material can be borrowed till the time the delivery is arrived and return them their taken stuff back.costa. References http://www.
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