PTM Crimson

PTM Crimson
Crimson Coffeehouse & Lounge is an independent coffeehouse in Richmond, VA.
The shop is located on the border of three historic neighborhoods: Church Hill, Shockoe Bottom and Tobacco Row. These neighborhoods have experienced a rebirth in the last several years and the shop has been an integral part of the resurgence. Opening in February 2008, a team of knowledgeable and highly engaged baristas serve fresh, house baked pastries and hand crafted espresso beverages. Premium roast coffee is brewed utilizing only the French Press technique ensuring the highest quality, freshest cup for every customer, every time.

The mission of Crimson Coffeehouse & Lounge is to provide a charismatic venue where coffee, culture and community connect. The vision to be Richmond’s preferred coffeehouse and lounge. Their values: Crimson Coffeehouse & Lounge promises to uphold the following core standards – engaged and knowledgeable baristas, charismatic and inviting atmosphere, top-quality product and service and consistent, prompt delivery.

In addition to enjoying sophisticated espresso-beverages, patrons can enjoy a hip community-based social gathering place that differs from the commercial coffeehouse chains. Here you can experience the communal aspects and atmospheric charm of an independent coffeehouse and lounge. Crimson has comfortable interior and garden patio seating with décor inspired from cultures around the world.

The owners of Crimson both work full time and live about 100 miles north of Richmond. There is one manager, two assistant managers and 3 – 5 baristas. No one on the team works more than 30 hours a week and all members of the team are key holders empowered to make decisions. There are several shifts every week when there is no manager on duty. The compensation structure for all baristas (including managers) is a base hourly rate plus shared tips. Currently the average hourly earnings for all staff is $12.58 per hour or $16,000 annually (for an average of 25 hours a week). Managers do earn a higher hourly rate; however tips are shared based on the percentage of the hours worked. For example, if a total of 100 hours is worked by all and $100 in tips are collected the barista who works 20/100 hours will receive $20 (or 20%) of the tips collected.

This chart shows the current shop performance and the goals for 2014.

Current Goal % change
Sales $16,000 per month $20,000 per month 20%
Avg ticket $5.18 per transaction $7.00 per transaction 18%
Traffic 3000 transactions 35000 transactions 165

Learning Activity:

1. Executive summary should be approximately one page
2. I would like Scorecards prepared on PowerPoint.

You are a human capital consultant hired by the owners of Crimson Coffeehouse & Lounge to design two performance scorecards that are aligned with the strategic goals of the business.

Scorecard #1 should be designed for the managers, scorecard #2 should be designed for the baristas who do not have specific management responsibilities. Write an executive summary that you would use to present your scorecard models to the owners.

You may use any format you wish (Excel, Word, PPT, etc)