Reference no: EM132881451

DEVELOPING STORE MANAGERS AT CARIBOU COFFEE

Caribou Coffee, the second largest specialty coffee retailer in America, opened its first store in 1992 in Minnesota. Headquartered in Minneapolis, the company now has hundreds of stores and over 5,000 employees in 18 states and the District of Columbia. Caribou tries to be different ¾ it tries to be everything that Starbucks, its number one competitor, isn't! Unlike Starbuck's hip, urbane sophistication that is "an extension of the hustle and bustle of a city street," Caribou Coffee is designed in a fashion reminiscent of a rustic Alaskan cabin or a ski lodge. Also unlike Starbucks, Caribou provides its customers with one free refill on regular coffee during each visit.

Caribou Coffee describes itself as "a fabulous place to work." The company's Web site states, "[w]hether you're young or old, on your way to college or retirement ¾ or somewhere in-between, we invite you to explore our upscale lodge setting as an exceptional place to work." Moreover, the company emphasizes that "[attracting] and retaining good people is critical to Caribou Coffee's success." Caribou Coffee also invites prospective employees to live the company's core values. These values are succinct and straight-forward. They are: "Blaze new trails. Be excellent, not average. Enjoy what you do. Respect diversity. Teamwork builds success. Success and profit create opportunities. Make a difference in our community."

Store Managers play a key role in implementing these core values. Store Managers also are crucial to the success of Caribou Coffee. The responsibilities and expectations for the Store Managers include:

• Acting as business owners of their stores.
• Commanding high personal standards and working for the greater good of Caribou Coffee.
• Meeting and exceeding sales goals.
• Growing sales by delivering top-quality products through timely and friendly service in clean, pleasant surroundings.
• Recruiting and hiring efficient and friendly employees, who are called team members.
• Training and developing team members, through regular feedback and coaching, to deliver excellent guest service.
• Leading by example, and dividing time equally among team members and guests.
• Developing successful sales and marketing efforts with local communities.
• Developing and maintaining relationships with vendors.
• Working 55 hours per week, including nights and weekends.
• Committing to three years in a Store Manager role.
• Making a positive impact on their communities.      

The path to Store Manager follows one of two different routes: individuals who are hired from the outside and then undergo an intensive training program; and those employees who are capable and desire to move up in the company. Individuals who are hired from the outside participate in the Manager-In-Training Program. These people, known as Manager-In-Training (MIT) candidates, typically have experience with another restaurant or retail company. Usually, they also have some experience in balancing the multiple responsibilities of managing people, products, and profits. MITs start their training by working in a store under the guidance of a designated Store Manager trainer. The eight-week training program combines in-store, classroom, and self-study training modules to impart the necessary skills, knowledge, and experience needed to be a successful Store Manager. Upon completion of the eight-week program, MITs are prepared to assume the position of Store Manager.

Employees who desire to advance in the company through the Store Manager route can enter the Manager Apprentice Program (MAP). MAP candidates typically are employees who have succeeded as both a team member and a shift supervisor. Unlike the MIT program, there is not a set time frame for MAP training. The progress of MAPs depends on how quickly and thoroughly they master the skills that are needed for effective store management.

Once the MITs and MAPs become Store Managers, they "are treated like owners of their own businesses." The Store Managers hire, train, and develop team members to meet the store's goals for people, profit, sales, and quality. To help ensure that new Store Managers are successful, Caribou Coffee provides various forms of support. Store Managers are mentored by their District Manager, each of whom oversees six to ten stores. The main goal of the District Managers is to share their knowledge and experience with their Store Managers. Within a given district, Store Managers also have the opportunity to interact with one another on a monthly basis. At these monthly district meetings, financial results, business trends, and upcoming initiatives are discussed. These meetings also provide an opportunity to discuss important issues and benefit from the knowledge and experience of others.

Other than a challenging job, what does Caribou Coffee offer its Store Managers? "Along with a healthy work culture comes a competitive, comprehensive compensation and benefits package that includes medical, dental, RRSP, life insurance, pooled leave, short- and long-term disability, discounts on drinks and merchandise, and other perks. Many of these benefits are contingent upon position, number of hours worked, and time with the company."

Although the Store Managers are expected to make a three-year commitment to that role, they can advance in the company. Store Managers have been promoted to positions in District Management, Marketing, Training, Human Resources, and Customer Service, among others.

References: Frazier, M. (2005) Starbucks It Isn't - And Purposely So. Advertising Age, Midwest region edition (March 140, Vol. 76, No. 11, p. 12; Caribou Coffee - Careers. https://www.cariboucoffee.com/careers/ (accessed October 22, 2007); Caribou Coffee - Corporate Profile, https://www.cariboucoffee.com/aboutus/corporate profile.asp (accessed October 22, 2007). This case was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business Administration, Valparaiso University. 

QUESTIONS:

You have been hired as the new HR Business Partner for Caribou Coffee. Your client base is the District Manager and 10 Store Managers.

1) Discuss how you plan to develop positive relationships with your new clients.

2) Draft questions and expectations you would use in providing internal consulting services including a written agreement of expectations.

3) Based on the information you have read/researched about being a HR Business Partner, describe how you are going to transition to this role and what approach you will take to understand the "business aspects" in providing advice and recommendations.

4) Summarize in one to two pages the key findings and learning from reviewing the LinkedIn Learning site.