OGL 481 Pro-Seminar I:

PCA-Choosing an Organization Worksheet

1) Name and describe your organization.

Starbucks prides itself on beverage innovation and creating an uplifting experience for its
guest. In March of this year, with no warning they made a decision to close a speciality
wing of Starbucks called Reserve Bars. Prior to closing the portfolio, Reserve Bars only
made up an infintismal percentage of stores across the US, specifically less than .006%
for the US Business. As a store manager in a Reserve Bar location I am responsible for
the successful operation of the business, which includes sourcing and onboarding talent,
sales and inventory, teaching and training, performance and development and profit and
loss. I had a vision to run these stores with a retailer mindset, that is to create an
experience unlike any other store while controlling costs and maximizing revenue. I took
great pride in leading the Reserve Bar portolio in sales, customer connection metrics, and
total contribution. In these stores, exotic coffees from around the world are used to craft
innovative beverage. Baristas (employees) take extreme pride in the knowledge they have
aquired and the passion they have for their craft. The decision to decommission the
Reserve Bar portfolio seemed sudden, unfounded and poorly executed. Leaving everyone
in the store perplexed as no reason was given and no follow up provided.

2) Describe your role in the organization (it can be an internal or external role).

Started with Starbucks in 2002 working part time as many do. I worked through to
manager by 2005 and have managed stores all across my market. I am an area trainer for
internal and extnernal store managers, district managers and regional directors. I have
been in my current store for the past 4 years, the largest store in DC. I am responsible for
recruitement, performance management, scheduling, profit and loss and inventory. My
store recently transitioned from a Reserve Bar to a regular store.

3) Describe the situation, including information you think the will help the reader
understand the most important elements of the situation. (This will require
selectivity: part of the art of case writing is separating the essential facts from the
mass of information that might be included).

Earlier this year a decision was made to decommission all the Reserve Bars across the
US. The Reserve Bar portfolio accounted for 30 stores in the US and Canada that served
single orgin coffees on five different brew formats. They serve drinks and coffees only
found in Reserve Bars and the tier above called a Roastery. My store was top in class for
1
 Reserve Bar sales while maintaining the lowest spend rate as percentage of revenue. The
decisions to transition all Reserve Bars, along with the communication and work tasks
failed to meet the Starbucks standard I have come to expect. Nearly six months later and
there has been little to no communication regarding the machinery, labor model or online
persona (google & yelp). My intent is to study this decision and corresponding actions or
lack there off from multiple perspectives. My goal is to submit my case study to
Starbucks in hopes reduce these types of experiences for future events.