Extreme Customer Service

Robert “Bob” FishCo-founder & CEO, Biggby Coffee

QuickTimeª and aTIFF (Uncompressed) decompressor

are needed to see this picture.

Just B

Yourself

Personal History– Born Augsburg Germany– Lived in Europe 12 yrs

• Germany• France• England

– Father worked for Ford– Mother was German– Michigan was home base– Went to MSU

• Hospitality Business– Paid for school

• By working at a Restaurant• Later owned it !

History

• First location – East Lansing March 1995

• 35 coffee shops– In the greater Lansing Area

History

• Second location– Downtown Lansing

• October 1997

History

• 1998 – People begin to ask?– I visit Mary Ellen Sheets – Takes a year to put Franchise Docs together

– Franchise fee $20,000– Total cost to build out approaching

$250,000

History

• First Franchise Sold in 1999• East Lansing (Grand River and Hagadorn)

– Former Employee

• Okemos (Jolly and Okemos)– Former Customer

History

• 2000 – 7 units• 2002 – 14 units • 2004 – 26 units

• 2006 – 53 units• 2008 – 99 units• 2009 – 111 units

Today

• Locations in– Michigan– Ohio– Wisconsin– South Carolina– Alabama

Today• We have a new name • Franchise fee is $ 30,000• Cost to open $300,000 (+/- 10%)• We have added

– Drive thru– Fireplaces– TV’s– Soft seating

Today• 1,600 Jobs• 78 new ‘small business owners’• $ 40,000,000+ in combined sales• Sales Growth of 40% +• We were ranked 255 out of the ‘Top

500’ franchises by Entrepreneur Magazine– Up from 289

Today• Support of select Industries for 2009

– Construction $ 4,000,000– Dairy $ 1,500,000– Small Equipment $ 2,000,000– Distribution / Transportation $ 9,000,000– Manufacturing (Roasting) $ 3,400,000– Advertising and Marketing $ 2,000,000 – Sell coffee in 250 grocery stores

Success…depends on• Knowing…

– Who are you?– Where are you going?

• Ability to…– Communicate (internally and externally)– Focus (knowing what is important)

The first step…

• Operating Philosophy (1997)

The first step…

• Perception by customers that we respect their time and move them as quickly as possible

• Every customer leaves the store in a better mood than when the customer arrived

• Recognize each customer as an individual

• Consistently produce a high quality beverage

Favorites…http://www.biggbybob.com/2008/10/daman-flipping-out-biggby-in-livonia.html Daman

http://beta.twiddeo.com/457 Lk Lansing Jane

http://www.biggbybob.com/2008/07/something-dorky.html Allendale

http://www.biggbybob.com/2008/08/bruce-outs-jordan-sp.html bruce

http://www.biggbybob.com/2008/10/you-dont-have-to-be-crazy-to-work-here.html ballons

http://www.biggbybob.com/2008/09/biggby-coffee-just-ridiculous.html Frog

PERC

• Gave us the ability to…– Focus– Communicate internally

• Helped us understand…– Who we are?

The second step…

• Business Philosophy (1999)–Core values

7 core values

1. Simplicity through systems• Having a system makes it teachable

• Systems are the common thread that hold all of us together

• Reliance on systems is what has allowed BIGGBY COFFEE to grow aggressively

7 core values

2. Top line driven• Revenue solves all problems• To focus on the top line, is to focus on the

customer• There is no bottom line, without a top line

7 core values

3. Energy, Excitement, and Enthusiasm• Energy – drive, stamina, and intensity, with

pluck

• Excitement – animated, dramatic, and passionate, hullabaloo

• Enthusiasm – zealous conviction in what you are doing ….it’s contagious.

7 core values

4. Always have Faith, Confidence, and Courage

• Faith – truth, assurance, and belief

• Confidence – self reliant certainty with spirit

• Courage – adventurous and brave fortitude

7 core values

5. Maintain long term sustainability through profitability

• Profitability ensures sustainability

• Sustainability implies long term

• Every penny counts

7 core values

6. Engaging the community …Giving is getting

• “It is in giving that we receive”

• Engaging your community, is an investment in where you live, work, and play

• ROI – Return On Involvement… it’s ten-fold

7 core values

7. Dedication & Dependability• Dedication -- single minded adherent commitment

• Dependability – steadfast tenacious responsibility

7 core values• S Simplicity through systems• T Top line driven …Revenue solves all problems• E Energy, Excitement, and Enthusiasm• A Always have Faith, Confidence, and Courage• M Maintain long term sustainability through profitability• E Engaging the community …Giving is getting• D Dedication & Dependability

Favorites…http://www.biggbybob.com/2008/10/daman-flipping-out-biggby-in-livonia.html Damanhttp://beta.twiddeo.com/457 Lk Lansing Janehttp://www.biggbybob.com/2008/07/something-dorky.html Allendale http://www.biggbybob.com/2008/08/bruce-outs-jordan-sp.html bruce

STEAMED• Helped us understand…

– Who we are

• Gave us the ability to…– Focus– Communicate internally and externally

2008 - 2013

• VISION:– BIGGBY COFFEE will be the largest franchise

chain of specialty coffee shops in the USA

• MISSION:– Create one new BIGGBY COFFEE fanatic per

day, per store who will actively promote us to others.

Mission and Vision Statements• Helped us understand…

– Who we are– Where we are going

• Gave us the ability to…– Focus– Communicate externally and internally

Fourth Step

• Culture (2007)

Culture• One of the most difficult concepts to understand

and articulate in any organization• Has to be consistent inside and outside the

organization– Employees– Customers– Operators– Corporate Office– Vendors

Culture

• Have Fun• B-Happy• Make Friends• Love People• Make Great Coffee

Culture• One of the most difficult concepts to understand

and articulate in any organization• Has to be consistent inside and outside the

organization– Employees– Customers– Operators– Corporate Office– Vendors

Culture• Helped us understand…

– Who we are

• Gave us the ability to…– Communicate internally and externally– Focus

PERC, STEAMED, MISSION, VISION, and CULTURE…Merge

• Can stand alone or be used simultaneously• Permeate all aspects of BIGGBY COFFEE

– Marketing• Outdoor• Print • Web• PR• Social Media

PERC, STEAMED, MISSION, VISION, and CULTURE…Merge

• Operations– Manuals – Training– Coaching– Inspecting

PERC, STEAMED, MISSION, VISION, and CULTURE…Merge

• Store Design– Color– Music– Furniture– Layout

PERC, STEAMED, MISSION, VISION, and CULTURE…Merge

• Menu– Color– Names– Beverages– Mix

• Appears to be just another method of message delivery…except these three things – 1. Gives personality (like a person)– 2. Allows for interaction (dialogue)– 3. Consolidates communication channels

• Customer, Staff, Operator, Corporate

Social Media

• Social Media has two vulnerabilities…

– It must feel earnest, real, and truthful…

– It is always on…

Truth

• I gave up my corporate office to spend more time in the stores…

• I tell the story of my travels on my blogwww.biggbybob.com

BIGGBY BOB

• I also share my adventures on...

BIGGBY BOBBIGGBY BOB

• Other places you can find BIGGBY…

» www.biggby.com

» www.bhappylounge.com

» BIGGBY Guuru

BIGGBY BOB

http://beta.twiddeo.com/424 B yourselfhttp://www.biggbybob.com/2008/10/daman-flipping-out-biggby-in-livonia.html Damanhttp://beta.twiddeo.com/457 Lk Lansing Janehttp://www.biggbybob.com/2008/07/something-dorky.html Allendale http://www.biggbybob.com/2008/08/bruce-outs-jordan-sp.html brucehttp://www.biggbybob.com/2008/10/you-dont-have-to-be-crazy-to-work-here.html ballonshttp://www.biggbybob.com/2008/09/biggby-coffee-just-ridiculous.html Frog

http://www.biggbybob.com/2008/10/hoppy-kidz.html hoppy kidzhttp://www.biggbybob.com/2008/04/kazoo-story-or-2.html Kazoo Dylan

http://www.biggbybob.com/2008/03/biggby-coffee-essay.html http://www.biggbybob.com/2008/03/dont-forget-to-fly-plane.html

Favorites…

Questions?

Thank You

Our three CEOs from Inside the CEO Mind come together to answer your questions in our next session.

Coming up next at 9 a.m.