Koffee Kup started as a family business, founded in 1940 by Rosaire Roberge in Burlington, Vermont. Rosaire baked donuts every night and delivered them to mom-and-pop stores by bicycle each day. With ownership changes in 2011 and the acquisition of Vermont Bread in 2013, Koffee Kup Bakery expanded its reach throughout New England, the NYC Tri-State area, Washington DC, Pennsylvania and Maryland. Still headquartered in Burlington, Koffee Kup Bakery operates 3 bakeries and 19 delivery depots, providing baked goods across the Northeastern United States.
Koffee Kup Bakery
EMPLOYEES: 400 employees
REVENUES: $ 75 million
HEADQUARTERS: Burlington, VT.
When we started our work with Koffee Kup, the company had just ended a hectic summer season. Seasonal peaks had become extremely difficult, as bakeries were already running 24/7 and production still was unable to keep up with demand. Bakery employees were being asked to work seven days a week with little or no time off, for stretches of twelve to sixteen weeks in a row. Lack of time off had led to low employee retention, and managers blamed turnover as the cause of poor quality and reduced production. Much of the interest in looking at scheduling was being driven by the need to improve employee work/life balance through predictability of work schedules. Another challenge was that out of date and stale product returns for the fiscal year 2017 were at 10% of sales, a number that was unsustainable.
As customers drove demand, Coleman Consulting Group began the analysis of the sales depots’ schedules and performance to understand if any changes could be made with the existing company model. We analyzed sales and found that most bread is purchased by consumers on weekends from Thursdays to Sundays, so when the Koffee Kup delivery team was dropping orders on Mondays, the store shelves were indeed empty. As a result, the bakeries ramped up production and shift workers were working long hours on the weekends to fill the grocery shelves on Monday. When CCG began this project, we were told that the employees had to work every weekend in order to fill empty shelves on Monday, and then they would get a day or two off during the week. The team at Koffee Kup asked for our scheduling expertise to solve their high overtime costs on the weekends, and to improve employees' schedules to help with retention.
Coleman Consulting Group has already implemented new schedules at two sites, which will not only meet increased production needs but more importantly, provide a manageable schedule for their most important asset, their bakers. Koffee Kup is now delivering fresher bread to stores for the weekend rush when customers shop most, and employees are working schedules that allow for predictability and more time off. Change is hard, but in this case, a simple solution will save Koffee Kup hundreds of thousands of dollars in overtime and turnover, and their customers are enjoying fresher baked goods. By matching production to customer demand, the company conservatively expects the return rate to be cut in half!
Coleman Consulting completed a full business analysis including the cost of time, workload history, workforce history, the rate of absenteeism, turnover, logistics routing, historical sales, and returns. The three-bakeries analysis focused on staffing requirements, staffing ratios, job descriptions rotation, and potential work rules. After an analysis of the sales cycles and return percentages, a different solution was proposed. As a provider of artisan bread and doughnuts, timeliness to market and freshness are key factors to Koffee Kup’s success. By changing the production and delivery schedules so that 70% of the products arrive on the shelf on Thursday and Friday, Koffee Kup customers are eating bread that is 3-4 days fresher. Stuffing empty shelves on Monday with bread that will be purchased and enjoyed until the weekend did not make sense, but that's the way it had always been done. Now, consumers are buying fresher bread that is made the mid week, and employees no longer need to work overtime every weekend.