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Friday, October 03, 2008
Starbucks Changes Scheduling System To Cut Costs: Report
Sue Chang
MarketWatch Pulse
SAN FRANCISCO -- Starbucks Corp. changed its scheduling system so there will be fewer employees working more hours at its coffee shops, the Wall Street Journal reported in its online edition Friday. The program is aimed at reducing its labor costs and improve sales by fostering familiarity between customers and a smaller group of employees, according to the newspaper. The program is part of a broader plan to revive the company amid a slowdown in sales that has prompted the coffee retailer to shut stores and curb its expansion, the Journal said.
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Most folks judge the health of a business by the revenue that comes in through sales. But not all revenue is equal. Companies can grow their sales by buying other companies, which means you don't get a clear view of how the real sales trends are moving.
So, many analysts, particularly those who look at retail, try to gauge what¿s known as "organic" growth, by looking at same-store sales. These are sales only at outlets open more than a year, so the metric can exclude any sales jump that comes from opening new locations. Retailers release same-store sales (which are frequently called "comps" since they're a true comparison from the previous period) every month.
Retail, incidentally, isn't the only industry to look at same-store sales. Hospital companies, also use the metric, to gauge how existing hospitals are performing compared to ones they just built or acquired.
