The effective use of

physical evidence in a
service environment
Based on Starbucks
1. Introduction to Starbucks
 American multinational corporation, which initiated in 1971
and is headquartered in Washington
 The largest coffeehouse chain in the world with over 32,000
cafes spread across approximately 80 countries around the
globe(Starbucks, 2020)
 Generates nearly USD 26.5 billion in 2019(Starbucks Investor
Relations, 2020
 Focus on adding value to its customers by offering a unique
‘Starbucks Experience’ which depicts its employment of
efficient servicescape strategies within its outlets
2. Servicescape

2.1 Introduction
 A model developed by Booms and Bitner
 Highlights the significance of the physical
environment where the procedures of the service
operated in, for companies operating in the service
sector (Choi, Seo & Lee, 2012)
 It is a positive impact of the good physical
environment
2.2 Servicescape Elements

The key elements of servicescape are identified as

follows;
1. Facility exterior
2. Facility Interior
3. Ambient conditions
4. Other tangibles
2.2.1 Evaluation of Starbucks’ Facility
Exterior

1.Starbucks uses facilities with nearly 800-1000 sq. ft. for its outlet
buildings
 Operation’s effectiveness – Customers have enough space to enjoy
their gatherings comfortably, without being bothered by other
customers.
 Operation’s efficiency – Raw material storage will be located within
the outlet, creating convenience for employee and leading to faster
delivery of products to customers.
(Starbucks, 2020a).
2. Drive Thru signage and wayfinding clearly visible
from main path of traffic.

Operation’s effectiveness – Customers are clearly

informed about the drive thru facility as well as they
are clearly guided on how to enter the drive thru,
without getting misplaced and facing inconveniences.

Operation’s efficiency – Employees won’t have to

redirect misplaced customers and will be able to
maintain the crowds and deliver the orders promptly.

Source: Creed (2019).

3. Placement of outdoor seating areas
at Starbucks outlets.

Operation’s effectiveness –
Outdoorsy customers who prefer the
comfort of nature, while consuming
Starbucks products, will experience
the surrounding they require.
Operation’s efficiency – All
customers won’t be cooped up inside
the store, making it easy for
employees to handle customers at
crowded hours.
Source: TripAdvisor (2020).
2.2.2 Evaluation of Starbucks’ facility interior

1. Interior design aligned to local culture and

reflecting the unique features of the neighborhood of
the particular outlet.
• Operation’s effectiveness – Customers feel the ‘at
home’ comfort when in Starbucks outlets, leading them
to spend more time.
• Operation’s efficiency - Employees are also from the
same region, therefore, localized designs makes their
workplace comfortable for them to operate with morale.
For example; the Langsuan community store located in
Bangkok Thailand
Source: Starbucks (2014).
2. Large menu boards displayed behind the counter
• Operational effectiveness – Menu boards are highly
visible so that customers are easily informed about their
choices and can make speedy order decisions through
viewing the board.
• Operational efficiency – Employees doesn’t have to
waste a lot of time informing customers about their choices
and the order process becomes much faster.
Source: Sanchez (2018).
2.2.3 Evaluation of Starbucks’ ambient conditions

1.Strong and invigorating coffee aroma within Starbucks

stores.
• Operation’s effectiveness – Customers nose buds are
stimulated as soon as they enter the premises, which creates
the urge for them to purchase coffee and will linger in their
memory causing them urges to visit Starbucks regularly.
• Operation’s efficiency - Increased sales revenue through
stimulating customers for regular visits.
(Modern Restaurant Management, 2019).
2. Natural lighting provided through multiple
windows.
• Operation’s effectiveness – Customers adore
and feel energized by the warm daylight, especially
when they visit to get their coffee before work in
the morning, rather than gloomy interiors.
• Operation’s efficiency – Employees also feel
energized and motivated with daylight during the
day, and gets enough light for conducting their
operations, while saving electricity costs during the
daytime.
Source: Yosephine (2019).
2.2.4 Evaluation of Starbucks’ Other tangibles of
servicescape
1. All Starbucks employees wear a green apron
with the printed Starbucks logo.
• Operation’s effectiveness - Customers can
clearly identify the employees among the crowds
in the outlets. Moreover, customers will perceive
this as a representation of proficiency of
Starbucks workforce.
• Operation’s efficiency - Aprons will prevent
coffee from spilling on their clothes and
employees have access to multiple aprons for
changing in case of a spill. Further, it provides
unity and creates belonging among the
workforce as part of the Starbucks team.
Source: Zinsmeister (2016).
2. Starbucks beverage cups with its
logo printed on front.
• Operation’s effectiveness – Starbucks logo
will be imprinted on customer mind with each
purchase, leading to increased brand loyalty.
Further, the premium brand image of Starbucks
will create a perceived self-expression for
consumers who carry its coffee cups around
displaying the logo.
• Operation’s efficiency - Customers carrying
Starbucks cups with its logo on, will increase
brand recognition and will act as an indirect
promotion for the company, which leads to
increases sales revenue.
Source: Prakash (2016).
3.0 Starbucks Servicescape Best Practices

 Allocation of a walk-up only system

 Priority to providing natural lighting in all its outlets

 Strategic usage of coffee aroma to create the necessary ambient

scent
4.0 Best Practices Recommendations for Starbucks To
Improve Its Servicescape

 Integration of Kaizen methodology to the servicescape

 Starbucks employee uniforms must be upgraded to a more proficient

level

 use an air fragrance in the restroom that separates it from the coffee
aroma of the ambient scenting of the outlets
5.0 Conclusions
 A multinational coffeehouse chain that incorporates servicescape for augmenting the
physical environment to create positive service experiences for Starbucks customers
 There are different actions executed by Starbucks to enhance its elements of servicescape
which includes the outlet exterior, outlet interior, outlet ambience and other tangibles
within the outlets
 Starbucks has strategically employed servicescape in enhancing its service experience to
customers as well as increasing employee experience, employee productivity and
organizational efficiency.
 Starbucks is not utilizing sophisticated marketing approached; the servicescape quality
should be enhanced further with Kaizen, to create indirect promotion for the ‘Starbucks
Experience’, that customers are attracted to.
 Satisfactory level of servicescape employment is highly essential for the success of
service companies such as Starbuck
References

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https://www.starbucks.com/about-us/company-information
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