Brian Niccol, the new CEO of Starbucks, has made improving the mobile ordering experience a top priority as he works to turn around the slumping business. Mobile orders account for over 30% of transactions at Starbucks, but have been a source of frustration due to inaccurate wait times and congestion in stores. Niccol outlined three key initiatives to address these issues: improving sequencing for accurate pickup times, introducing guardrails on order customization, and creating separate pickup areas for mobile orders to reduce congestion in stores. He plans to bring order to the mobile ordering process to prevent it from overwhelming the cafes.
Niccol is taking inspiration from his time at Chipotle, where he overhauled the digital ordering system by creating a separate cooking area for online orders and introducing drive-thru pickup windows specifically for digital orders. He plans to scale investment in Siren Craft, a tech-enabled system that helps baristas prepare orders more efficiently, with the goal of delivering orders to customers in four minutes or less. Niccol is committed to streamlining operations and improving the overall customer experience at Starbucks by eliminating additional charges for non-dairy milk substitutions, bringing back condiment coffee bars, removing some items from the menu, and reducing complexity to align with the company’s core identity as a coffee company.
Despite facing challenges such as a 7% decline in global comparable store sales and a 25% decrease in non-GAAP earnings per share, Niccol remains optimistic about the future of Starbucks. He believes that by focusing on the core identity of the brand and consistently delivering a great customer experience, the company can win back customers and return to growth. Niccol is taking a methodical approach to his new role at Starbucks, emphasizing the need to reset the foundation in order to create additional growth catalysts for the business. He is confident that the company’s problems are fixable and most of the solutions are within their control.
On his first earnings call with analysts, Niccol emphasized the importance of fixing the issues with mobile ordering and creating a seamless experience for customers. He is focused on optimizing the mobile ordering system to ensure accurate pickup times and reduce congestion in stores. By implementing changes such as separating mobile order pickup areas from the cafe experience and introducing common sense guardrails on order customization, Niccol aims to improve the overall customer experience and drive growth for Starbucks. His experience at Chipotle has provided him with valuable insights on how to transform digital ordering systems and streamline operations to meet customer demands effectively.
Niccol’s strategic approach to addressing the challenges facing Starbucks includes scaling investments in technology and streamlining operations to enhance efficiency and customer satisfaction. By leveraging his experience at Chipotle and implementing proven strategies to improve the mobile ordering experience, Niccol is confident that Starbucks can overcome its current challenges and return to growth. He recognizes the importance of aligning the company’s offerings with its core identity as a coffee company and believes that by delivering a great experience consistently, Starbucks can win back customers and drive long-term success. Niccol’s focus on solving key issues such as four-minute order delivery and reducing complexity in the menu demonstrates his commitment to revitalizing the Starbucks brand and positioning it for future growth.
