How Starbucks is Revamping Customer Experience

During my recent visit to New York City for its Empire State Building store, I experienced firsthand Starbucks’ new focus on order sequencing. When placing a mobile order and picking up in-store, I noticed a clear shift—in-store orders were prioritized over mobile pickups. This aligns with Brian Niccol’s strategy to tackle Starbucks' "brand moment of truth"—ensuring the experience at the pickup counter meets customer expectations. He also mentioned, "order sequencing was responsible more for bottlenecks at Starbucks than capacity (may refer to both drink manufacturing capacity and physical store space)". The company is now focusing on: ✔ Algorithmic Order Sequencing to streamline mobile vs. in-store orders ✔ Digital Menu Boards for better order management ✔ A Simplified Menu to enhance speed and efficiency ✔ In-Store Experience Enhancements to strengthen brand connection Starbucks is making bold moves to rebalance the customer experience, ensuring both mobile and in-store guests receive timely service. My NYC experience showed they’re already putting this into action! Looking forward to seeing Starbucks continue evolving as a customer-focused coffee shop space that brings both efficiency and connection to every cup. ☕✨ https://lnkd.in/gATUpQCh #Leadership #Starbucks #CustomerExperience #Innovation #MobileOrdering #Restaurant #Food #Drink #UNLV #CalPolyPomona #AIH24

Starbucks is in the midst of a bold turnaround-here’s what’s happening behind the scenes. After four straight quarters of falling sales, CEO Brian Niccol and the Starbucks team have doubled down on their “Back to Starbucks” strategy. The focus is getting back to what made Starbucks unique: exceptional service, inviting coffeehouses, and genuine human connection. Key changes include: 👉 Investing in People: Starbucks is hiring more baristas and increasing hours, betting that people-not just machines-are the key to better service and happier customers. 👉 Rethinking the Coffeehouse: Stores are being revamped with more comfortable seating and free refills, aiming to restore Starbucks as the go-to “third place” for community and connection. 👉 Operational Improvements: A new order-sequencing algorithm and the upcoming Green Apron Service model are set to speed up service and improve the customer experience. 👉 Menu Focus: The company is simplifying its menu to emphasize coffee craft and relevant innovation, while rationalizing food offerings. Despite these efforts, recent earnings have been disappointing, with profits down 50% and the stock taking a hit. But leadership remains confident: “We’re not just building back our business. We’re building back a better business,” says Niccol. It’s a work in progress, but Starbucks is betting that a renewed focus on people and experience will turn the tide. What do you think-will this back-to-basics approach bring Starbucks back to growth? #bestadvice #customerexperience #people

Over the last few years, Starbucks pulled out 30,000 comfortable seats, installed hard wooden stools, blocked electrical outlets and turned stores into takeout counters for customers picking up orders off its mobile app. The changes backfired and customers left for local coffee shops and other chains and brewed more coffee at home. Now Starbucks is trying to win back customers looking to sit down for a cup of coffee by renovating 1,000 stores — 10% of its company-owned US locations—with comfy chairs, couches, tables and power outlets in the next year. The company aims to make changes to all of its US stores within the next three years for an undisclosed price tag. “It’s creating comfortable seating where people want to come in. It’s not just the quick grab and go concept,” Mike Grams, Starbucks’ chief operating officer, said in an interview with CNN last week at one of the first remodeled stores in Bridgehampton, New York. “Maybe over past years, we lost our way a little bit on that.” The company is beginning its remodel push in the Hamptons, the posh vacation retreat where Bon Jovi, Jennifer Lopez, Alec Baldwin and other celebrities own homes. Starbucks redesigned four stores in the Hamptons and plans to remodel New York City locations next quarter. Starbucks’ “coffeehouse of the future” is not revolutionary, but the Bridgehampton renovation made the store feel modern. The design was minimalist, with a mix of light and dark-brown wood tones, dark-green walls and soft lighting. Plants and bowls of coffee beans were placed around the store. The espresso bar was opened up, and the menu board went digital. At the Bridgehampton store, people were having conversations in low, cushioned armchairs, orange booth seats and high-top tables for two. Other customers were sitting in wood chairs on their laptops at small tables. The big question is whether these changes go far enough to reverse Starbucks’ slide. Sales at stores open at least a year have declined for five consecutive quarters. The company is getting squeezed by independent coffee shops, growing chains like Blank Street Coffee and Blue Bottle Coffee and drive-thru companies such as Dutch Bros. Customers have also balked at Starbucks’ prices. “Is it an overwhelming change? No. But I think it makes a psychological difference,” said Joe Pine, the co-founder of consultancy Strategic Horizons, who criticized Starbucks for “commoditizing itself” through mobile orders in a Harvard Business Review article last year. “It sends a signal to sit down and spend some time here,” he said. https://lnkd.in/eTR32j38