1. What has created the customer satisfaction problem at Starbucks?

The customer satisfaction problem at Starbucks can be attributed to several factors. Firstly,
despite achieving consistent sales growth, market research indicates that Starbucks is not
meeting customer expectations, suggesting a disconnect between the company's
performance and customer satisfaction. Additionally, the complexity of Starbucks' menu and
the high demands for customization from customers pose challenges in delivering excellent
service. Customers have expressed a desire for improvements in speed-of-service, indicating
a gap in service efficiency. Finally, the evolving customer base and changing perceptions of
the Starbucks brand among newer customers have also contributed to the customer
satisfaction problem.

2. Will you advice investing USD 40 Million to hire additional 20 hours of labour/week?
Based on the provided data, a strong recommendation would be to invest USD 40 Million in
hiring additional labor for 20 hours per week. This investment aligns with Starbucks' goal of
reducing service time to three minutes across all stores, regardless of the time of day. By
improving speed-of-service, Starbucks can enhance customer satisfaction and foster
stronger, long-term relationships with its customers.

3. How do you plan to obtain return on investment for this investment of USD 40 Million?
The investment of USD 40 Million will enable Starbucks to hire an additional workforce for 20
hours per week, thereby expanding the available labor capacity. These additional hours of
labor can be strategically utilized to enhance the speed of service and cater to customers'
specific customization requests more efficiently. With the increased staffing, Starbucks will
be better equipped to handle peak hours and customer demands, resulting in reduced wait
times and improved overall customer satisfaction. The ability to provide swift and accurate
service, especially for customized orders, will create a positive impression on customers and
foster stronger loyalty. This investment demonstrates Starbucks' commitment to addressing
customer expectations and ensuring exceptional service experiences, ultimately leading to
enhanced customer satisfaction and the potential for long-term growth.