Mr. Coffee--Not

Newsweek, September, 2003 by Daniel McGinn

Seb Agapite doesn't fancy himself a barista, nor is he looking to hire one. But inside Dunkin' Donuts' product-development center in Braintree, Mass., Agapite stands before a high-tech machine that will let his stores sell high-margin espressos and cappuccinos. Behold the Shaerer Ambiente, an $11,800 "super-automated" espresso machine that Dunkin' Donuts has begun installing in every one of its stores. To demonstrate its magic, Agapite pushes some buttons and 45 seconds later hands NEWSWEEK a latte. "I waited in line eight minutes at Starbucks for a similar product," Agapite boasts.

For managers in all kinds of businesses, it's among the hardest decisions: what's the right mix of labor and technology? Whether it's an automobile plant deciding on the mix of million-dollar...

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