Goutham Malle’s Post

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!

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

Coffee lovers (and that's most of us), this one is for you. While I'd rather drink no coffee than anything from Starbucks, their sheer scale and success as a business is one I admire, and this story has truly astounded me. Convention dictates that a latte should be a 1:3 ratio of espresso to hot milk. For Starbucks, however, this just one of 383 billion different ways that a latte can be made, between their different sizes, temperatures, milks, foams, syrups, drizzles, toppings, powders and, I assume, barista enthusiasm. It leads me to ask two questions: - Is it even still a latte? - Why are they not limiting the amount of options to improve the business? The answer to the first is obviously not, and you'll never be able to convince me otherwise. For the second, it seems to be a fine line. This personalisation adds $1 billion to revenue each year (there's gold in that pumpkin spice), but it does so at the expense of serving customers quicker, and serving 5 extra customers a day across all of their locations could add another $900 million. So they're focusing on other parts of the process to find time for those extra 5 customers. https://lnkd.in/gFZCGbPY #starbucks #personalisation #coffee

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...?

From simple "black coffee" to the iconic "tall iced pumpkin cream chai tea lattes," Starbucks has redefined how we enjoy our daily coffee. Howard Schultz's vision in the 80s brought us the language of "tall," "venti," and the personalized experience Starbucks gives its customers. This article does a great job of showing how the evolution of Starbucks' culture and brand awareness was driven by the introduction of specialized language. Additionally, it skillfully portrays how Starbucks revolutionized the way we order coffee by introducing a brand-specific vocabulary. The iconic sizing terms like "tall," "venti," and "grande" are explained, along with their Italian origins and significance. This linguistic innovation has made Starbucks stand out and become synonymous with a unique coffee experience.

Hello, Brand Lovers! Did you know that Starbucks, the world’s largest coffeehouse chain, has a language of its own? The Starbucks baristas, the people who make and serve coffee here, use many interesting slang terms to communicate with each other. For example, a "blonde roast" is a light roast coffee, and a "red eye" is a coffee with a shot of espresso added. Some of these terms are even known to the customers like "tall", "grande", "venti", and “trenta”, which are used to refer to the different coffee cup sizes. For a much deeper breakdown, do check out the complete branding case study on my YouTube channel, called ‘Brandzpree Branding’. #starbucks #starbuckscoffee #language #barista #brandingstrategy #brandinspiration

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.

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 )

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

As a #Manufacturing guy, this makes my heart ache. Ring me up Starbucks, I can help you cut ~33% more time out of making this drink = more customers served. In the video: 1) 33% of the cycle time is consumed with retrieving a cup, ice and flavors that go into every drink 2) the "bins" they retrieve them from need to be refilled multiple times a day (more lost time) 3) the steps that could be eliminated are prone to repetitive motion injuries, an added benefit 4) the milk dispenser helps, but the bad seal that lets milk continue to drip needs to be addressed ... plenty more opportunity as well, these are just a few. The issue with doing a pretty good job at optimization is that the cost sunk into it means the full optimization won't be done any time soon.