Starbucks is shifting its U.S. strategy under CEO Brian Niccol, trading discounts for a focus on customer experience and efficiency.
At a Glance
- Starbucks emphasizes a partner-centric approach, enhancing human connections.
- Predictive staffing models determine shifts, promoting seamless operations.
- The Siren Craft System is streamlining store efficiency.
- Over 10% of Starbucks stores have adopted new operational systems.
- Starbucks’ strategy responds to declining U.S. sales and customer traffic.
Focus on Partner-Centric Approach
Starbucks is spearheading a partner-centric approach to address ongoing challenges in its U.S. markets. The aim is to foster better human connections, which the company believes is pivotal for its revival. Starbucks uses advanced staffing models that forecast staffing based on various factors ranging from trends to promotions. This predictive approach allows local leaders to tailor hours according to specific store needs and employee preferences.
Schedules are posted three weeks in advance, balancing operational demands with partner preferences to boost employee retention and satisfaction. Feedback from partners is routinely sought, ensuring that their experiences are enhanced and that their input continually shapes store operations.
The Role of the Siren Craft System
The Siren Craft System is a significant component of Starbucks’ new strategy, aiming to streamline operations. This system is designed to reduce wait times and augment both partner and customer experiences. With this system, 15-minute increment transaction predictions are possible, enabling precise scheduling.
“We actually have proper sequencing between our hot and cold bars, versus cold bars becoming as popular as ever, to really have a consistent experience for the customers. So we’re actually making them in the order they’re coming in,” Macoy McLaughlin, the manager of Seattle’s First and Walker Starbucks location, said, adding that the cafe feels busier, but customers in store and in the drive-thru are getting drinks faster.”
This data-driven approach ensures that Starbucks is adequately staffed during peak times, further supported by the company’s commitment to continuous improvement. Increased staffing during promotions also backs robust demand periods.
Responding to Market Challenges
In response to recent downturns in U.S. same-store sales, Starbucks is revitalizing its approach with Niccol at the helm. His strategic vision involves improving customer satisfaction and operational efficiency. Niccol’s previous success at Chipotle positions him as a critical player in leading Starbucks’ turnaround.
“It’s the ability to flexibly respond to things we cannot predict,” she told CNBC in an interview.
As part of these efforts, Starbucks is opening its app to non-reward members to broaden its customer base and promote convenience. Investments in new equipment, such as custom ice dispensers and faster blenders, further reinforce these operational enhancements.
Maybe next they’ll start thinking about their prices.
Can you believe a cappuccino can cost six or seven bucks these days?
