Inside Starbucks' plans to improve stores for customers and baristas

Starbucks Revolutionizes Store Operations with Siren Craft System

Bottlenecks and Long Wait Times Plague Starbucks Cafes

Starbucks, the global coffee giant, has been grappling with significant challenges in its store operations. Long wait times, bottlenecks in order processing, and a decline in customer satisfaction have been plaguing the company's cafes across the United States. These issues have led to a concerning drop in same-store sales and customer traffic, prompting the need for immediate action.

Inefficient Workflows and Increasing Mobile Orders

Several factors have contributed to the operational hurdles faced by Starbucks:

Inefficient drink production processes
Inability to handle unexpected surges in customer traffic
Increased complexity due to the rising popularity of mobile orders
Limited flexibility in responding to unpredictable situations

These challenges have resulted in incomplete mobile app orders and a decrease in visits from occasional customers, ultimately impacting the company's bottom line.

Implementing the Siren Craft System

To address these issues, Starbucks has developed and begun implementing the "Siren Craft System," a comprehensive set of operational changes designed to streamline workflows and enhance customer experience. Key components of this system include:

Optimized Drink Production Order

Starbucks is revamping the sequence in which beverages are prepared. Previously, cold drinks were prioritized from start to finish, even if hot drink orders came in first. The new system ensures that drinks are made in the order they are received, reducing bottlenecks and improving overall efficiency.

Introduction of the "Play Caller" Role

A new position, akin to an expediter in a restaurant, has been created to manage workflow during busy periods. This "play caller" steps away from production to solve logjams, restock supplies, and handle unexpected rushes, ensuring smoother operations during peak times.

Enhanced Digital Production Manager

Baristas now have greater control over the Digital Production Manager, an iPad-based system that sequences orders from various channels. This increased flexibility allows staff to adjust order priorities as needed, improving responsiveness to real-time demands.

Equipment Upgrades

Starbucks is gradually rolling out new equipment under the Siren branding, including custom ice dispensers, milk-dispensing systems, and faster blenders. These upgrades are designed to reduce steps for baristas and accelerate drink preparation times.

Expected Outcomes and Future Plans

Starbucks anticipates significant improvements from the implementation of the Siren Craft System:

Increased throughput during peak hours, estimated to boost annual same-store sales by 1 percentage point
Reduced wait times and improved order completion rates
Enhanced customer satisfaction and more frequent visits from occasional customers
Better ability to handle increased traffic from expanded mobile app access

The company plans to roll out the Siren Craft System across all North American stores by the end of July 2024, with equipment upgrades continuing over the next several years. Additionally, Starbucks is expanding its mobile app access to non-rewards members and third-party platforms, aiming to attract more customers and increase order volume.

As Starbucks navigates the challenges of changing consumer behaviors and economic pressures, the success of the Siren Craft System will be crucial in revitalizing its store operations and maintaining its position as a leader in the competitive coffee market.

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