Ben Shute’s Post

The cringe memes your dad keeps sending about 98-step coffee orders are kinda right. Starbucks has 383 billion unique latte combinations and is investing in changes to help baristas make all of them a lot faster, according to Bloomberg. Why the need for speed? The coffee chain is struggling to keep customer wait times down. Most customers are continuing a pandemic trend and swarming the Sbux app to order their morning bev, making it easier to add extra pumps of…everything. And Starbucks can’t just do away with the customizations that are slowing things down: Extra charges bring in over $1 billion in revenue every year, according to the president of Starbucks North America. So, Starbucks is spending billions to shave seconds off your wait time: The chain introduced smaller ice cubes for easier scoopability and is rolling out portable cold foamers so baristas don’t have to clog up prep space at the big blenders. It also filed a patent earlier this year for a machine that could automate drink-making. The company claims the changes will make baristas’ jobs easier, but some workers aren’t so sure. Understaffing is still one of the main issues driving the unionization effort among Starbucks locations—not a lack of souped-up Keurigs. Big picture: Other chains are also vying for speedier order handling to accommodate larger menus and more sales volume. Popeyes is overhauling its kitchens for the first time in a decade to make faster chicken sandwiches.—MM https://lnkd.in/eumhwVq2 #efficiency #workplaceexcellence #workplaceefficiency

This great article on Starbucks describes a problem that from now on I’m going to call “the 383 billion latte problem”. That’s how many different varieties of latte we can now purchase, due to endless choice in coffee, milk, flavored syrup, and other bells and whistles. “Narasimhan, who sometimes works shifts at stores to better understand the operation, faces the more fundamental question of what Starbucks even is. The company long highlighted its version of Italian espresso culture, a place where people could linger, read the paper and chitchat with baristas. But now, 74% of orders are drive-thru, mobile or delivery, and cold drinks account for three-quarters of its business. The chain even has pickup-only stores with no seating. “We fully acknowledge a need to evolve and modernize,” Narasimhan told investors in May.” Right here, we see the tension between customer service and worker rights, and get the sense that Starbucks is sleepwalking into failure. All fascinating when juxtaposed against its lofty sustainability goals. But it also highlights a recurring issue in the modern world, which I think is a fundamental misunderstanding of what the customer “wants.” So many latte varieties, still so hard to get a simple, great cup of coffee So many varieties of kitchen utensil, but still difficult/impossible to buy a decent pepper mill So much innovation in tech, still no printers without glitches So many things that are supposed to make life easier, yet I’m stuck in an endless loop of two stage password verification and 500 milk varieties. We cant get the basics right while searching endlessly for the next big thing. Make it stop!

What we can learn from the Starbucks Puppuccino 🐶 ☕ When we go to a coffee shop, the goods and services we receive can largely be categorised into two groups: Expected and Unexpected. In the Expected: good coffee made from freshly ground beans, ambiance, hospitality, comfort, choice, rewards for loyalty. Since the coffee space is a crowded and competitive market, we demand these things as standard. In the Unexpected: Special promotions, partnerships and added value items, the stuff we can't get at home. For instance, the Puppuccino. An espresso cup full of whipped cream. Cost to Starbucks, minimal, almost non-existent. Benefit to consumer: Huge. Now every time I pass a Starbucks with my dog it becomes an event. A reason to go. It's symbolic of the flexibility of this third space, where anyone is welcome - even those with a waggy tail. And of course, if I'm going in for a free 'Pup Cup', I'm going to buy coffee while I'm there. This reinforces spending habits, positive association with the brand, and offers a surprise and delight moment. So next time you're working on a brief, perhaps ask yourself - what are the Expected and Unexpected benefits I can bring to life. And why is the second category so much more powerful than the first...?

#personalization #experience Did you know that Starbucks use 4 major manipulation techniques to sell you their overpriced coffee? :D   First, Starbucks capitalises on customers first names to foster a sense of camaraderie. Secondly, they use Italian sounding names to create the perception of high-quality coffee. Next is with price, the coffees strategically set to convey affordable, quality and sets high enough to convey a sense of value, but not excessively so that they become unaffordable. Lastly, Starbucks takes advantage of the IKEA effect by allowing customers to customise their drinks, making them willing to pay even higher prices.   The secret of Starbucks lies in selling experience rather than just a simple cup of coffee.

Starbucks is Spending Billions to Shave Seconds from the Coffee Making Process - Bloomberg Starbucks would make an extra ~$900m a year if each store served 5 extra patrons per day. There are currently 383 billion potential drink combinations at Starbucks. And orders have gotten so ridiculously elaborate, that the average wait time is 5 minutes. Starbucks new Siren System will save valuable time and be in 40% of US stores by 2026. Key Take-A-Ways: 1. Customers love personalization @ speed 2. It takes ongoing investments in innovation to perpetually elevate the customer experience with the right set of technology and process improvements https://lnkd.in/eastFQuD

Yesterday, I met with two friends, Andra Ghibutiu and Andrei Dunuta, at Starbucks to talk about a forthcoming educational project (hush.. it's a secret 😀). With the coffee queue stretching out, we just settled in and began talking. I'd glance over at the line from now and then, thinking of ordering. The queue stayed long and our talk was too good to interrupt, so I ended up ordering.. nothing😀. For #Marketing students, this is a prime case study on optimization, and it's detailed brilliantly in this article from #Bloomberg. Key metrics for this optimization: It takes more than 5 minutes for 1/3 of the customers to place an order. This metrics directly translates into 1) some potential loss in revenues: >>> With 37,200 Starbucks locations worldwide, "serving just five extra customers a day in every store could boost annual revenue by more than $900 million." 2) customer satisfaction >>> Customer surveys highlight the queue as the primary issue. The extreme level of product personalization is turning into the biggest hurdle. Let's look at the number of combinations for what used to be a simple #Latte: - 3 possible sizes of the cup - type of coffee (signature expresso, blonde expresso, decaf, 1/2 decaf.." - extra shot - type of milk - type of sweet: Sugar, stevia, honey etc - type of extra syrup - type of extra sauce (caramel, white chocolate..) - type of extra milk foam - type of extra cream - type of extra drizzle - type of topping (caramel crunch, cinnamon dolce..) - type of powder.. - ... Guess how many combinations exist? >>> 383,201,280,000 !!!!! Getting all these ingredients at hand - ready-to-use - is a real challenge. And it has a direct impact of the barista retention. "The intricacies are good business, because Starbucks charges extra for additions, which bring in more than $1 billion in revenue a year. But they slow things down." We all understand now that it is a complex problem, and a delicate #ChangeManagement to operate with the staff. "Starbucks says employee feedback on the upgrades has been “overwhelmingly positive.”" Many might not be aware, but the business of Starbucks has changed recently. Starbucks sticks to the image of a cozy place to enjoy a hot coffee. But the data tell a different story: - "74% of orders are drive-thru, mobile or delivery" (Big up to my friends of bonapp.eco for their successful partnership with Starbucks in Romania) - "cold drinks account for three-quarters of its business." ---- From cozy coffee corners to complex concoctions, Starbucks brews a tale of change and challenges. The next time you sip, remember the story behind every cup. ☕️ (this catchphrase is from #ChatGPT, not me :-D )

Discover the power of benchmarking in the coffee industry! ☕✨ Imagine running a café and competing in a saturated market where everyone sells the same thing. In the 90s, Starbucks faced this challenge and decided to stand out through benchmarking. They conducted a comprehensive analysis of the coffee industry, identifying opportunities for improvement and growth. They found that the key was in the customer experience. Thanks to benchmarking, Starbucks identified issues in the quality of their products and the efficiency of their production processes. Starbucks doesn't just sell coffees; it offers a unique experience. From personalized coffees with your name to the option to choose premium drinks, all in a welcoming and modern environment. Their efficient service, ensures you enjoy your coffee quickly. ☕🚀 #Benchmarking #CustomerExperience #QualityCoffee

How Starbucks makes you pay more for coffee. There are many great coffee brands out there. But Starbucks is really rich, worth over $100 billion. So, how do they get you to spend more money on coffee and keep coming back? First, they use fancy Italian names to make their stuff seem special. Italy is famous for its food. Everywhere you go in Italy, you can get yummy pasta made with fresh ingredients. From "baristas" to the sizes of their drinks... "venti" and "grande". Starbucks is trying to make you think their coffee is super fancy. Second, Starbucks tries to be friendly with each customer. When you order coffee, they ask for your name. And when your coffee is ready, they say your name. This makes you feel closer to them. Third, Starbucks doesn’t just sell coffee, they sell an experience. You can make your coffee just the way you like it. Their stores have wifi so you can stay, work, or even have meetings. And they have cool new places like the Starbucks Reserve Roastery, the Reserve Bar, and the Reserve Store. It’s like a fun place for people who love coffee. And if you don’t like Starbucks, you can go to smaller coffee shops instead... like Seattle’s Best. Oh, but that used to be owned by Starbucks too. ;) Whether you love or hate Starbucks, you can always learn from their marketing.

Coffee shops are supposed to be places where patrons can sit, have a nice conversation, and enjoy their drinks. Instead, this idea of revamping productivity will only make Starbucks seem more of a fast-food environment. No longer, can you sit, and relax you are bombarded with hoards of people trying to customize every drink in any way possible, loud obnoxious music, and drinks with no actual attention to detail put into them. These 'TikTok' drinks have ruined the enjoyment of being a barista, because not only are staff berated when their drink can't be customized to their liking but, instead of creating a positive workplace to lift each other up - it creates unnecessary tension and anger towards customers and even other. And how would I know you may ask? Well, I have been a barista for 9 years and the enjoyment and fun of what it used to be when I first started is no longer there. Yes, I agree, that Starbucks needs to care for its loyal customers, but at the same time, it needs to do a better job at caring for its employees and realize that putting unnecessary pressure to go faster will decrease quality and actual care.

According to Bloomberg, Starbucks would make an extra $900M a year if each store served an extra 5 patrons per day. Starbucks is investing $450M on a new bar setup called the Siren System that optimizes the placement of dairy, caffeine, pumps and ice in order to shave a few seconds off each order. There are currently 383 billion potential drink combinations and orders have gotten so complex that the average wait time is 5 minutes. Those “extras” are worth $1B a year. The Siren System will be in 40% of stores by 2026. Source: https://lnkd.in/eTR6BxYE https://lnkd.in/evQfW54B