Starbucks claims that one of its customers’ main complaints—waiting too long for their coffee—is being addressed by new technology.
In dozens of U.S. locations, a technological trial has reduced the average time to prepare a beverage ordered inside cafes by two minutes. While not delaying mobile orders, reported that three-quarters of orders during the busiest times at the test cafés were finished in four minutes or fewer, approaching its service-time target.
To make up for lost revenue and boost customer satisfaction, the Seattle-based business intends to shortly extend the experiment to hundreds more of Starbucks’ 10,000 stores across the United States.
“The rollout is happening very quickly because we’ve seen such positive benefits from it,” Deb Hall Lefevre, the chief technology officer of Starbucks, stated in an interview.
Following four straight quarters of same-store sales decreases, Starbucks is aiming to shake things up. The chain’s costs and wait times have angered customers, who are now looking to competitors for quicker and less expensive coffee. Later on Tuesday, Starbucks is scheduled to release its second-quarter earnings.
Starbucks needs to speed up its service, especially during the morning rush, according to CEO Brian Niccol, who took over the largest coffee business in the world last September.
According to Niccol, over half of in-store orders took more than four minutes earlier this year. The average time to complete a mobile order was about six minutes.
Orders are currently processed by baristas in a first-come, first-served fashion. Starbucks expects the new algorithm, which it began developing this year, will dictate the order of drive-throughs, apps, and café counters.
Earlier this year, Niccol, who previously managed turnarounds at Taco Bell and Chipotle Mexican Grill, hired Meredith Sandland, a former coworker at Taco Bell, to oversee chain growth.
Six developers who had previously worked for Sandland at a software business that assisted eateries in better managing delivery orders were also hired by Starbucks.
According to Starbucks, the crew contributed to the internal development of the new proprietary order-scheduling algorithm.
Additionally, Starbucks is experimenting with setting up particular times for mobile order pickups, utilising the new technology. In order to avoid drinks sitting out for minutes before a customer comes, baristas are learning to schedule the production of mobile orders based on variables like order complexity, according to Starbucks.
Lefevre claimed that rather than being driven by artificial intelligence, the new order-sequencing system is “rules based,” adhering to a preset “if-then” framework. It has potential to get more intricate over time, according to Sandland.
The business is using technology to increase its workforce, among other things. A 700-store trial program is now underway with the goal of allocating the proper number of employees to cafés in accordance with demand.
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Daisy Morgan is a dedicated business journalist known for her insightful coverage of global economic trends and corporate developments. With a career rooted in a passion for understanding the intricacies of the business world, Daisy brings a unique perspective to her writing, combining in-depth research with a knack for uncovering compelling stories. Her articles offer readers a comprehensive view of market dynamics, entrepreneurship, and innovation, aiming to inform and inspire professionals and enthusiasts alike.
