Inside Starbucks’ plans to improve stores for customers and baristas

by | Jul 1, 2024 | Business

Starbucks Coffee shop in Krakow, Poland on February 29, 2024. Beata Zawrzel | Nurphoto | Getty ImagesStarbucks cafes across the country are starting to change how they make drink orders, among other tweaks designed to reduce bottlenecks and long wait times that have dogged the chain.The overhaul comes as the coffee giant prepares for an anticipated swell of orders through its mobile app.At the heart of the plan is Starbucks’ “Siren Craft System,” a series of processes that aim to make baristas’ jobs easier and speed up service times for customers. Starbucks said more than 10% of its 10,000 stores have already implemented the system, which includes changing the production order for hot and cold drinks. It will be deployed across North America by the end of July, according to the company.Executives hope the changes will provide a much needed jolt to Starbucks. In April, the company reported a disappointing second quarter, as U.S. same-store sales fell 3% and traffic dropped 7%. The coffee chain cut its 2024 outlook.Starbucks reported rates of incomplete mobile app orders in the mid-teens and said occasional customers came in less. CEO Laxman Narasimhan mentioned the need to make improvements to stores.The most immediate shift that needed to happen in cafes was better handling the unexpected, Katie Young, SVP of store operations at Starbucks, told CNBC in an interview. “It’s the ability to flexibly respond to things we cannot predict,” she said.The store changes will be key this month, as Starbucks on Monday started opening up its app to non-rewards members, which the company believes will increase traffic and orders.”My sense is that they have a lot of demand in certain stores, and the footprint of the kitchen is so small, you have to find ways to be more efficient,” BTIG Managing Director Peter Saleh said. Losing customers because of slow orders and other store frustrations could cost Starbucks at a particularly vulnerable time. Americans have become cost conscious in the face of ongoing inflation, and in some cases have pulled back on morning or afternoon beverages and snacks. N …

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[mwai_chat context=”Let’s have a discussion about this article:nnStarbucks Coffee shop in Krakow, Poland on February 29, 2024. Beata Zawrzel | Nurphoto | Getty ImagesStarbucks cafes across the country are starting to change how they make drink orders, among other tweaks designed to reduce bottlenecks and long wait times that have dogged the chain.The overhaul comes as the coffee giant prepares for an anticipated swell of orders through its mobile app.At the heart of the plan is Starbucks’ “Siren Craft System,” a series of processes that aim to make baristas’ jobs easier and speed up service times for customers. Starbucks said more than 10% of its 10,000 stores have already implemented the system, which includes changing the production order for hot and cold drinks. It will be deployed across North America by the end of July, according to the company.Executives hope the changes will provide a much needed jolt to Starbucks. In April, the company reported a disappointing second quarter, as U.S. same-store sales fell 3% and traffic dropped 7%. The coffee chain cut its 2024 outlook.Starbucks reported rates of incomplete mobile app orders in the mid-teens and said occasional customers came in less. CEO Laxman Narasimhan mentioned the need to make improvements to stores.The most immediate shift that needed to happen in cafes was better handling the unexpected, Katie Young, SVP of store operations at Starbucks, told CNBC in an interview. “It’s the ability to flexibly respond to things we cannot predict,” she said.The store changes will be key this month, as Starbucks on Monday started opening up its app to non-rewards members, which the company believes will increase traffic and orders.”My sense is that they have a lot of demand in certain stores, and the footprint of the kitchen is so small, you have to find ways to be more efficient,” BTIG Managing Director Peter Saleh said. Losing customers because of slow orders and other store frustrations could cost Starbucks at a particularly vulnerable time. Americans have become cost conscious in the face of ongoing inflation, and in some cases have pulled back on morning or afternoon beverages and snacks. N …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
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