Starbucks strategy to streamline its service over the next three years includes the implementation of a new system to reduce order delivery times, as well as improvements to the mobile app and rewards system
This week, Starbucks announced that it would implement a radical plan in its United States branches to encourage the growth of the company in the next three years, with an investment of $450 million dollars, a strategy that includes everything from new equipment to the implementation of rewards digital.
“We’re not reinventing what we do,” interim CEO Howard Schultz said during a meeting with investors on Tuesday. “We’re just reinventing how we do it.”
According to the report, customers are increasingly ordering through the company’s mobile app and self-service service. Additionally, they are opting for cold drinks, which now make up the majority of drink orders.
These are the implementations that Starbucks plans to make:
Siren System to speed up deliveries
One of these improvements is called the Siren System, which among other attributes is designed to reduce the amount of time it takes to prepare cold drinks. Faster blenders and new dispensers for ingredients like milk and ice are installed in one line, so baristas can make the drink without bending down to reach milk or whipped cream under the counter.
Baristas spend around 36 seconds making a Frappuccino with Siren, compared to 87 seconds on average with the traditional system.
Siren also uses ovens that can heat food in batches, rather than individually, to get food to customers more quickly. Some stores are already using the system as part of a trial, but Starbucks plans to start rolling it out more widely in 2024.
The company also discussed a new coffee machine that makes a cup of freshly ground and brewed decaf or regular coffee in about 30 seconds without paper filters.
Greater attention to the mobile application
Mobile ordering has become an important part of Starbucks business. The company had about 27.4 million active rewards members in the quarter ending July, up 13% year over year.
For this reason, the company’s first priority is to make the app work reliably.
Starbucks is also planning other enhancements, such as allowing customers to use mobile ordering and collect rewards points when they visit a licensed location. It’s also working to show real-time order updates on the app, as well as a joint rewards program with other companies, like retailers or airlines.
Starbucks also said this week that it would allow rewards members to buy or earn NFTs starting later this year.