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CafeNova

Case Interview Practice > 
Brainstorming

Suppose management can only address one issue next year, either improve staffing efficiency (reduce unstaffed time) or limit wage growth. Which lever would you prioritize and why?

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If CaféNova can only address one issue next year, I would prioritize improving staffing efficiency rather than trying to limit wage growth. Wages are largely a function of broader market forces, such as labor shortages, inflation, and minimum wage legislation, and pushing back too hard risks higher turnover or difficulty attracting qualified staff, both of which would further hurt productivity. In contrast, improving efficiency is a lever the company fully controls and can generate immediate, compounding benefits.

By reducing unstaffed or idle time; for example, through better scheduling, dynamic shift management, and technology to match staffing levels with traffic, CaféNova can increase the proportion of paid hours that are productive. This directly lowers labor cost per unit sold without cutting pay, and also tends to improve employee morale by creating more predictable workloads. Over time, higher utilization can fund wage increases organically, keeping CaféNova competitive in the talent market while steadily improving margins.

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