Starbucks is implementing changes to its cafes in an effort to reduce bottlenecks and long wait times that have been affecting the chain. These changes are being made as Starbucks prepares for an expected increase in orders through its mobile app. The centerpiece of these changes is the implementation of Starbucks’ “Siren Craft System,” which aims to make baristas’ jobs easier and speed up service times for customers. So far, more than 10% of Starbucks stores have implemented this system, with plans to roll it out across North America by the end of July.
The need for these changes was highlighted by Starbucks’ disappointing second-quarter results, which showed a 3% decrease in U.S. same-store sales and a 7% drop in traffic. CEO Laxman Narasimhan acknowledged the need for improvements in stores, as incomplete mobile app orders were reported to be in the mid-teens, and occasional customers were visiting less frequently.
One of the main areas that needed improvement was the ability to handle the unexpected, according to Katie Young, SVP of store operations at Starbucks. She emphasized the need for flexibility in responding to unpredictable situations. To address this, Starbucks plans to introduce a role similar to an expediter in a restaurant production line, someone who can step away from production and help solve any issues that arise. Additionally, Starbucks will change the order in which beverages are made, prioritizing them based on when the order was placed rather than whether they are hot or cold.
The changes come at a critical time for Starbucks, as Americans have become more cost-conscious due to ongoing inflation. In an effort to address this, Starbucks has introduced a $5 food and beverage combo option to attract customers looking for value. Communicating value is part of Starbucks’ plan to increase business.
The Siren Craft System was developed with input from workers who identified issues that prevented them from creating beverages and connecting with customers. Starbucks plans to add a new role and change the order of beverage production to address these issues. The company also plans to train existing workers for the new role or potentially hire new baristas if necessary.
Starbucks has also made changes to its mobile app, opening it up to non-rewards members in an effort to increase traffic and orders. The company plans to expand mobile order and pay to third-party platforms to reach even more customers. However, the potential increase in traffic and workloads raises concerns about staffing and scheduling. Starbucks claims to have made progress in these areas over the past two years, but some baristas have raised issues about understaffing and scheduling.
Despite the challenges, Starbucks is confident that the changes it is implementing will lead to better-managed wait times and improved customer satisfaction. The company has already seen positive results in stores where the Siren Craft System has been implemented, with an increase in the number of customers served at peak times. Starbucks plans to continue rolling out new equipment and training processes to further improve operations.
In conclusion, Starbucks is taking steps to address bottlenecks and long wait times in its cafes by implementing the Siren Craft System and making changes to its mobile app. These changes aim to improve efficiency and provide a better experience for customers. Starbucks recognizes the importance of addressing these issues during a time when customers are more cost-conscious. By prioritizing flexibility, training, and updated equipment, Starbucks aims to better manage wait times and ensure customer satisfaction.
