Sunday, October 18, 2009

Week Seven

Thanks to new ways of showing productivity that were not originally provided by Biz Cafe but instead were posted on Moodle, I realized just how inefficient my coffee shop was. Basically, I was making customers happy, but in doing so was spending way too much and receiving way too little and was sinking deeper and deeper into the red every week.
This week came with the most drastic changes of any week thus far. I felt that not enough revenue was being made on weekends to justify the extra labor hours that were needed, so I closed weekends. I fired the weekend manager and seven servers, bringing me down to two managers and 16 servers. I felt 16 was an appropriate number of servers because I wanted two available per hour and the shop is open 80 hours a week now, with each working 10 hours per week. I also lowered wages of managers from $700 to $650 and the servers from $9.75 to $9.25. This is a decrease but is still significantly above average according to the labor report.
I was unsure how this would affect the amount of coffee since this was such a drastic change in hours and service potential. I ordered 60lbs of organic coffee and 7lbs went to waste. Also, small and large cups are now available along with the medium, so I ordered 5,000 of each of these cups and priced them at $2.50 for small, $3.25 for medium, and $4.00 for a large.

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