starbucks coffee by Wael Ahdab Ahdab

This presentation contains personnel information. None of the information contained hereafter may be reproduced or diffuse in any publish media under any circumstances.

I worked for Starbucks as I did for my own private company, my mission was to create commissaries in Kuwait, Lebanon, Dubai, Bahrain and Qatar in orderto supply SANDWICHES, PASTRY, CROISSANT , SALAD ETC...for Starbucks coffee: 62 outlets in Kuwait, 12 in Lebanon, 64 in Dubai, 14 in BAHRAIN and 16 Qatar. Starbucks was a challenge... Many attempt before my intervention cracked .... To Succeed !!!!... the mission required a large effort in a tidy plan. the following pages illustrated some of how I planned, and how do I accomplished the task. without overlook the lack in performance in Starbucks organization as well as in the casual dining department . the missing competence in both of them required discretion and reserve were the two of the traits that go into making up the relationship between me with these departments. To face this barrier, my project went by taking in consideration all these and by this method I attained the objective and the mission accomplished with succeed.....

My primary goal was to track sales and evolution in order to observe items growth store by store in all the areas. SBX DB Residence Tower SBX DB Residence Tower 25 SBX DB Residence Tower AED 61.50 Friday 25-Apr-08 To achieve this objective I related in computer AED 80.00 SBX DB Residence Tower Saturday 26-Apr-08 AED 46.70on my knowledge AED 57.50 AED 29.45 AED AED 34.20 AED 44.35 AED 47.60 AED 75.15 AED 48.95 AED 36.60 AED 55.45 AED AED 36.60 AED 27.60 AED 59.85

25-Apr-08 26-Apr-08 27-Apr-08 28-Apr-08 29-Apr-08 30-Apr-08 1-May-08 2-May-08 3-May-08 4-May-08 5-May-08 6-May-08 7-May-08 8-May-08

0 0 AED 182.20 AED 102.20 AED 127.70 AED AED 100.15 AED 130.70 0 0 AED 177.95 AED 113.45 AED 156.95 AED AED 159.70 AED 93.35

25-Apr-08 26-Apr-08 27-Apr-08 28-Apr-08 29-Apr-08 30-Apr-08 1-May-08 2-May-08 3-May-08 4-May-08 5-May-08 6-May-08 7-May-08 8-May-08

AED 269.15 AED 233.70 AED 300.65 AED 241.75 AED AED 229.35 AED 315.20 AED 293.70 AED 289.45 AED 226.20 AED 261.30 AED 273.05 AED AED 266.20 AED 303.30 AED 262.70

AED 70.00

45.90

AED 50.00 AED 40.00 AED 30.00

Closed Closed SBX DB Business Hub SBX DB Business Hub SBX DB Business Hub SBX DB Business Hub SBX DB Business Hub Closed Closed SBX DB Business Hub SBX DB Business Hub SBX DB Business Hub SBX DB Business Hub SBX DB Business Hub

Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday

AED 10.00 AED 0.00

48.60

SBX DB Business Hub

128.59

140.28

SBX DB 21st Century

27 SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century SBX DB 21st Century

Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday

Series1

AED 20.00

SBX DB Business Hub

AED 60.00

25 -A 26 pr-0 -A 8 27 pr-0 -A 8 28 pr-0 -A 8 29 pr- 0 -A 8 30 pr -0 -A 8 p 1- r-0 M 8 a 2- y -0 M 8 a 3- y -0 M 8 a 4- y -0 M 8 a 5- y -0 M 8 a 6- y-0 M 8 a 7- y-0 M 8 a 8- y- 0 M 8 ay -0 8

27-Apr-08 28-Apr-08 29-Apr-08 30-Apr-08 1-May-08 2-May-08 3-May-08 4-May-08 5-May-08 6-May-08 7-May-08 8-May-08

200 180 160 140 120 100 80 60 40 20 0

Series1

25 -A p 26 r-0 -A 8 p 27 r-0 -A 8 p 28 r-0 -A 8 p 2 9 r-0 -A 8 p 30 r-0 -A 8 pr 1- -0 M 8 a 2- y- 0 M 8 a 3- y-0 M 8 a 4- y-0 M 8 a 5- y- 0 M 8 a 6 - y- 0 M 8 a 7- y- 08 M ay 8- - 08 M ay -0 8

Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday

SBX DB 21st Century

Average sales per day AED

AED 350.00 AED 300.00

269.07

AED 250.00 AED 200.00 AED 150.00 AED 100.00 AED 50.00 AED 0.00

268.89

8,004.68

25 -A 26 pr-0 -A 8 27 p r-0 -A 8 28 pr- 0 -A 8 29 p r-0 -A 8 3 0 pr-0 -A 8 p 1 - r-0 M 8 a 2- y- 0 M 8 a 3- y- 0 M 8 ay 4- -0 M 8 a 5- y- 0 M 8 ay 6- -0 M 8 a 7- y- 0 M 8 a 8- y -0 M 8 ay -0 8

SBX DB Residence Tower SBX DB Residence Tower SBX DB Residence Tower SBX DB Residence Tower SBX DB Residence Tower SBX DB Residence Tower SBX DB Residence Tower SBX DB Residence Tower SBX DB Residence Tower SBX DB Residence Tower SBX DB Residence Tower SBX DB Residence Tower

Series1

Study, Statistic and Research The goal is to create new items to comply with the market demand ... To satisfy Starbucks client and to be the leader in innovation in the market

(Low fat topic pattern)

After several personal research and study I hit upon statistics about the diabetic ratio into the country of Arabic golf: In 2007, the 4 countries with the highest diabetes prevalence in the adult population are -Nauru (30.7%), -United Arab Emirates (19.5%), -Saudi Arabia (16.7%), Bahrain(15.2%), -Kuwait (14.4%). (Statistics come from Diabetes Atlas, third edition, International Diabetes Federation, 2007.)

These figures give me the opportunity to act accordingly by creating new products to fit with the market necessitate. The purpose was to increase turnover.

I sent study by email to Starbucks food and beverage department CC the managers in the area explaining the importance of this topic showing figures requiring action to improve sales....

How do I proceed in creating new item E.g. Low Fat R

Item

Pcs/ serving

Calories Carbohd Fat (g) / piece yrate (g)

Muffins (vanilla & Chocolate)

2 of each 60-75 10-10.5g 2-3.5g kind mini cal (respecti vely)

Protein (g) 1.0g

Mini Croissant R

Showing up: Calories / Carbohdyrate / Fat / Protein and Weight per piece

Same for other Items R

Showing up: Calories / Carbohdyrate / Fat / Protein and Weight per piece

One of the indispensable key in curbing cost is to check ingredient permanently respecting recipe

The follow illustration show the system that I applied to assure this purpose

INGREDIENTS CHECK LIST Brand Name

Salad-greek-SBX-

Recipe Name

One of the Salad-greek

Recipe Group

Recipe Type

Checking Date

Code

Type A/R

Salad-greek-SBX-

indispensable key in curb cost is to check up ingredient permanently kitchen The follow illustration show the system that I applied to assure this Salad-greek purpose pic here

Ingredients

Recipe Weight. gr.

cucumber

tomato

35 130 47 24 29

lettuce romaine fetta cheese calamata olive green capsicum

TOTAL WEIGHT

Curent Weight

Comment

300

Monitoring recipe & Checking ingredient after implementation

Checked by:

Approved By:

Weight & Shape CHECK LIST Brand Name

Croissant-Cheese-SBX-1

Recipe Name

croissant

Recipe Group

bakery

Recipe Type

cheese croissant sbx

Checking Date

Code

Type A/R

Croissant-Cheese-SBX-1

pic here

Ingredients

Recipe Weight. gr.

Croissant cheese

105 55

Dimension Height Width Depht

Curent Weight

Comment

160

cm.

Curent cm.

Respecting shape and form

Approved By:

Costed by:

Starbucks managing team insist to leave some items to be supplied by external contractor for personal reason well known to everybody.

They settle in 2ways in their argument : Shape and quality

You find hereafter some illustration observing how do I deal with this kind of situation and how I demonstrate the truth in a scientific conduct....

On 05/10/2007 I came to know from SBX that is working on procuring their Muffins frozen from Modern Bakery Without any action from the operations or any higher management in casual dining management in Kuwait, Pretending we are using the same ready mix of Modern Bakery but the test and the size is different and my team quality is not up to scratch. I requested to stop this action allowing me 15 days maximum to make sure we meet or resolve any & all Starbucks complains.

1-After research and study, I send an e-mail with statistic and figures to SBX management proving the drop in the sales of Muffins produced as per FNB manager imposed recipe & the size of tray that were supplied by Starbucks food and beverage managing .... Further I gave all necessary proof confirming that the Muffin recipe of Modern Bakery does not match the recipe imposed by SBX FNB manager. Consequently I requested SBX to allow PQ to go back to the earlier recipe & tray. 2-Here again, the FNB manager interfered offering to send the expert of the ready mix to reexplain his recipe & here we note that the agent to the frozen ready mix in Dubai is Modern Bakery. This was suggested regardless of the sales drop using this recipe claiming the failure to match its quality? 3-I reply to the SBX FNB manager that the problem is in the imposed tray & recipe & here I requested a formal recipe from Modern Bakery which was declined being their Propriety secret. 4-FNB was furious claiming that the real problem is our Muffin Consistency. 5-My response to the FNB manager was to cool & work as one team serving Al-Shaya interest. Further I commented on his negative non-cooperative attitude.

I sent email to Starbucks managment CC Casual Dining management proving that the slip in quality return to the recipe and the trays imposed by Starbucks FNB management

Sent: Monday, October 15, 2007 7:20 PM From: wael ahdab [mailto:wael@alshaya.com] To: salimskaff@alshaya.com; gaby@alshaya.com Cc: tab@alshaya.com; aref@alshaya.com; fsabbouri@alshaya.com; robert@alshaya.comve; elie@alshaya.com; wafic@alshayauae.ae; jihad@alshaya.com; chefmarc@alshaya.com; lester@alshaya.com; samerk@alshaya.com Subject: Ardya Muffin issue Dear Salim, Further to our meeting on the 05/10/2007 in which I promised to solve the muffin issue within 2 weeks, please see below: Product Quality According to the "Menu Item Quality Review" the result is clear, the level of Ardya Muffin is below the standard (More details in the attachment file) Statistic Muffin Sales of week 34/2006 show the following: SBX Muffin Banana Chocolate 373 pcs SBX Muffin Blueberry 518 pcs SBX Muffin Date Banana 467 pcs SBX Chocolate Double Muffin 587 pcs Muffin Sales of week 34/2007 show the following: SBX Muffin Banana Chocolate 423 pcs SBX Muffin Blueberry 973 pcs SBX Muffin Date Banana 756 pcs SBX Chocolate Double Muffin 849 pcs The proportion increase rate in one year: SBX Muffin Banana Chocolate 13% SBX Muffin Blueberry 88% SBX Muffin Date Banana 62% SBX Chocolate Double Muffin 45% The affected Muffin by order: 1- SBX Muffin Banana Chocolate 13% 2- SBX Chocolate Double Muffin 45% 3- SBX Muffin Date Banana 62% 4- SBX Muffin Blueberry 88% Number of new stores opened between weeks 34/2006 & 34/2007 Number of new stores is 22 from week 34/2006 (36 stores) to week 34/2007 (58 stores); increase of 61% The reason The discrepancy between the increase in the muffin sales and the increase in the new stores (61%) is due to the change of mix that took place without having the proper recipe. The question is, why Modern bakery in Dubai that uses the same Mix, outcome with a result more or less excellent? And why Ardya commissary didn't apply the right recipe? I asked the question to Mr. Ziad Nadar the Business Development Manager in modern Bakery .The answer was that MB use their special recipe, it is confidential and they do not give it to anybody Solution & action □ If SBX insists in using the same Mix as MB in order to standardize the product in the area, they should also provide PQ with the same recipe of Dubai. □ The sales before putting into operation the mix of MB were relatively double (particularly the Banana Chocolate and the Chocolate Double Muffin). The logical conclusion is that the muffin before the new mix was more appreciated, thus better. □ In addition DIP Commissary is constantly subject to a line of test and managed in order to produce a Muffin with better quality than the one of MB.... New DIP recipe can be applied in Kuwait as well as in Dubai. Your prompt reply is appreciated Regards Wael

Menu Item Quality Review Blueberry (Modern Bakery) R

Menu Item Quality Review Blueberry (PQ Ardya)

Menu Item Quality Review Muffin Double Chocolate(Modern Bakery)

Both of the manufacturer use the same Mix from the same source in order to standardize the product in the area..

f fi

Bl u Muf f i n Do u

e Chocol ubl at e( Do A r d ya )

er Bak y)

Ar d ya )

ocolate(M Ch od e

e bl

Choco uble lat Do e(

er Bak y)

Muf f i n Do u

colate(M Cho od e

e bl

berry (PQ Ar ue dy Bl

erry (PQ Ard eb ya lu ) B

Modern ry ( Ba er ke b e

r y)

Modern ry ( Ba er ke eb

r y)

Bl u

But unfortunately they are applying a different recipe, the imposition recipe and tray from FNB manager affect the quality standard & the Different muffin trays affect the shape size.

Emotional illusions response..... The purpose was to keep the quality standard on a lowest level R

From: wael ahdab [mailto:wael@alshaya.com] Sent: Wednesday, October 17, 2007 10:01 AM To: Gaby Azzi; salimskaff@alshaya.com Cc: tab@alshaya.com; aref@alshaya.com; fsabbouri@alshaya.com; robert@alshaya.com; elie@alshaya.com; wafic@alshayauae.ae; jihad@alshaya.com; chefmarc@alshaya.com; lester@alshaya.com; samerk@alshaya.com Subject: RE: Ardya Muffin issue Dear Gaby, I respect your opinion and esteem it.... but unfortunately this is not the version of Ziad Nadar the Business Development Manager in modern Bakery, he has obvious meaning; not to need explaining (they use a special recipe, it is confidential and they do not give it to anybody).... this explain why we couldn't get the same results from PQ & MD. Further to that, rely on the MENU ITEM QUALITY REVIEW (attached a copy) it's clear enough to show it's not a know how process who differ the first from the second, the proportion, the ingredient and the recipe are totally different (except the Mix), easy to see from the color, the test and the shape. I appreciate McPhee support and their visit will be esteemed but if the intent is to standardize the quality and the consistency let's apply in Ardya what DIP commissary doing by following a constant self line of test to manage to produce a good product McPhee already gave and they well taught their skill and the result is between your hands!!! I think it makes no sense to repeat the attempt more and more (except if they have something new to demonstrate) Thanks again for your attention and let's helping PQ team to start doing it work properly Regards Wael

High standard food level During adhering the responsibility of the production management period, to my duty Starbucks stores were supplied by a High level of food standard, approved by the following illustrating evidence clearly shown. The quality was far superior on what Starbucks' supplied from local provider ((Face to face with weight, consistency, shape, presentation and flavor)). This was scientifically proven, which didn't delight Starbucks administration at all..

Enduring study and research to improve quality and sustain high standard product

After my management

UAE Before my management

Final standard

High standard quality during my management

SBX supplier standard

Local SBX suplyer low quality

Humidity is a violent hazard give rise to spoil Local Supplier Before my management

Humidity

SBX supplier standard

I arrange to perforate the plastic bag with a hole to evacuate humidity from the bread

Final standard

Quality argument 1- The filling of the local supplier presents 22% of the sandwich weight 2- The weight of the local bread supplier is very high to the standard weight 3- The quality is very commercial

After my management

Local Supplier Before my management

I manage the stuff to present 40% Of the sandwich weight

SBX local Supplier

Very poor in filling -

After my management

Local Supplier Before my management

Non consistency: Weight, size and shape Local Supplier Before my management

With the commercial product used by Starbucks before my management. The filling run from 90gr to 100 gr instead of 130gr to 150gr After my management

After my management

Local Supplier Before my management

After my management

Local Supplier Before my management

Quality argument R

After my management

Consistency argument

Local Supplier

Before my management

Local Supplier

Before my management

the weight is under the rank required

Local Supplier

After my management

Before my management

Consistency argument

Local Supplier

Before my management

Local Supplier Before my management

Consistency argument

Local Supplier

After my management

Before my management

Local Supplier Before my management

Local Supplier

Before my management

Local Supplier Before my management

- Dough still uncooked - Small dots on the dough - The top is burned

More Examples of the poor quality that local supplier produced

Local Supplier Before my management

After my management

Le Notre Local LocalSupplier BeforeSupplier my management

Examples of the poor quality that local supplier

Le Notre Local Supplier

After my management

Before Local my management Supplier

produced

After my management

Le Notre Local Supplier Local BeforeSupplier my management

Examples of the poor quality that local supplier produced

After my management

Le Notre Local Local Supplier Before mySupplier management

After my management

Le Notre Local Local Supplier Supplier Before my management

Examples of the poor quality that local supplier produced Pine After my management

After my management

Local Supplier Local Supplier

Before my management

NO Pine

Other Examples screening the difference in Weight & Quality between what Starbucks use to offer to their client and what I managed to substitute. After my management

After my management

Local Supplier

Before my management

More cases showing the diverse in Quality between what Starbucks use to use and what I succeed to supply to their patron. After my management

Local Supplier Before my management

After my management

Local Supplier

After my management

Local Supplier

Before my management

More examples After my management

Local Supplier Before my management

After my management

Local Supplier

After my management

Local Supplier

Before my management

More examples After my management

Local Supplier Before my management

After my management

Local Supplier

After my management

Local Supplier

Before my management

After my management

Local Supplier

After my management

Local Supplier

Before my management

After my management

Local Supplier

B e f o r e

m y

Local Supplier

B e f o r e

m y

Local Supplier

Creation and design Creation and design are two of the traits that go into sustaining Starbucks and build proposal to improve the image in the market ... My aim and goal is to erect an integral sign for Starbucks, up dated and advanced in the market. To carry out this goal I put my skill, knowledge and experience which I performed between 1977 - 1983 during the period where I was engaged as manager in Marketing & Advertising company ((TIHAMA /Jeddah â&#x20AC;&#x201C; Saudi Arabia )) added training in PAO-DAO (Design & Graphic) and I was qualified in this field on 2001 in Paris.

New design S/bag

Starbucks Coffee

Back

Starbucks Coffee

Getting Offers

Front R

The team charging to control hygiene was very weak and missed knowledge and culture to have power over and prevent incident. some time induce deep confrontation. The page after show how in Starbucks outlets the hazard's monitoring is missed

Hygiene standard in Starbucks stores affect product quality

Fridge temperature very high to preserve pastry

Itch head beside products without hairnet

Handle items without cloves

Totally absence of hairnet

The ignorance and non competitive of Starbucks team had an effect on product quality

The food hygiene manager visited the dip commissary in dubai by the end of february 2008 he monitored cleanliness and hygiene procedures he concluded that gloves must be worn by the food production staff! And ordered to apply it, which is strictly forbidden to use cloves in area with oven and hot instrument ... It is a big hazard well known in the food industry. Consequently, the production manager instructed his staff to use gloves for food productions,(opposed to my instruction) in order to comply with customer request, without consulting with me & an incident took place in less than 48 hours after !

a- With the dedicated hand washing sinks (supplied with soap & sanitizer) according to the hygiene code latex cloves should be avoided... on other hand: b- Gloves should be changed whenever contaminated, and in any event should be changed every Â˝ hour, otherwise it would become a potential hazard to the food products c- Latex gloves prevent the cooks from actually touching the food and feeling any abnormality, or the presence of foreign objects invisible to the eye (like small foreign object, sand, vegetables remains etc.) d- According to the food guideline, The usage of latex gloves is not allowed near ovens, stove tops, etcâ&#x20AC;Ś for it is a potential hazard to public health

The piece of glove that was found in the Fajita Wrap What actually happened with the piece of latex is as follows: After 48 hours of Starbucks hygiene manager decision, a commis was preparing the Fajita Stuffing on the stove, and by accident touched the pan, or the hot handle, and felt a sudden deep burning sensation, which lead him to remove the glove as a reflex, and dispose it without checking if the glove was still intact.

Second evidence come from INSECT Incident occurred on February 2008 in Dubai

This evidence clearly show how the hygiene department in Starbucks is ignorant, non compatible and cannot pursue any food guideline to track the source of an incident and paralyze to deal in such circumstances

The conclusion arrive from an Insect came from frozen spinach bought as clean & ready to use and watched in a Spinach Quiche

I will not mention in detail that the largest companies in the world face such incidents which is not as an excuse to such occurrences. French Bakery has indeed had a shameful history concerning this matter as well as modern bakeryâ&#x20AC;Ś The only say that this insect was already in the spinach bought as frozen cleaned & ready for cooking and this was proven when we found similar insects in this product in another package. This which lead to immediately replaced the product and its supplier . How to deal with such circumstances my procedure was by:

Research, Study And analyze.

R es th ear e ch na s tu ta re rt of by th ide e n in tif se yi ct ng

Research R

Study

The incident happened during my visit to Kuwait on thu. 21 feb. 2008... A detailed report on wed. 27 feb. 2008 were sent to Kuwait describing the phenomena accompanied with the pest control certificate proofing that DIP commissary is out and clean of any kind of pest Wishing hearing any advice or instruction if there is any need to further stride....

Reply to this kind of situation usually is by sending a detailed report to the client team ... This was done on wed. 27 feb. 2008. 6 days after the incident take place, I sent to the head office in kuwait describing the occurrence accompanied with the pest control certificate proofing that dip commissary is out and clean of any kind of pest clearing up the fact source and action according to that take place 1- a formal letter sent to the

The reaction of Starbucks hygiene manager, he moved from Kuwait to Dubai reporting that the insect come from inside the commissary without any proof or evidence dumping the pest control report and the definition of the laboratory who explain the source and the origin of this kind of insect....He was, as usual speculating in place of offering a technical report .

The largest companies in the world face such incidents which is not as an excuse to such occurrences

Modern Bakery (eggshell on January 2008)