Friday, November 14, 2008

Number crunching, time wasting and other random Starbuck moments

I frequent Starbucks. In fact, if you logged into my Mint account you would see that they are my most frequented vendor. If you really wanted to waste more time you would graph my Starbucks consumption with others nationally (which Mint allows you to do). You would then have a heart attack especially if you were responsible for my budget.

So I was standing in line at Starbucks yesterday ordering my newest concoction; 3 shots on ice with a pump of mocha in a grande cup. Yes, I order it just like that. That is, of course, if the person making it doesn't recognize me and begin making it.

My drink is being made and 90% of the time the partner making my drink will ask if I would like the 4th shot free! As if I needed a 4th shot, I oblige and gracefully accept their generous offer. But this time some number crunching gene in my brain began asking the question, "I wonder how much money that Starbucks is leaving on the table by having a machine that mandates pulling 2 shots every time 1 is ordered?"

As if that alone was not enough time wasted I put it on a spreadsheet;

560 avg cups per store per day
$3.25 avg cost per order
$1820 avg income per store
15000 # stores
$9.964 avg annual income (this was a ballpark - wikipedia, which I looked at after and probably would have been quicker, said 2007 revenues were $9.4 billion)

If 5% of customers, or 26 of those 560 cups per store, are given the extra shot at .40 per shot that is $2,016,000 annually left on the table. I don't know how solid that is but it was an interesting exercise.

I guess a more productive and prudent use of my time would have been to take the amount of money I spend everyday, calculate the future value of that if I invest it rather than drink it and probably come up with an equally alarming figure.
























































































































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