Brian Niccol, the former CEO of Chipotle, has recently joined Starbucks as their new CEO with a focus on turning around the slumping business. One of his main priorities is to improve the mobile ordering experience at Starbucks, which currently makes up more than 30% of transactions but has faced criticism for inaccurate wait times and in-store congestion. Niccol outlined three initiatives related to mobile ordering, including implementing a new algorithm for accurate pickup times, placing limits on customizations, and creating separate pickup areas for mobile orders to alleviate congestion in stores.
Niccol is drawing on his experience at Chipotle to improve the mobile ordering experience at Starbucks. At Chipotle, he helped transform the digital ordering system by creating a separate cooking area for online orders and implementing drive-thru pickup windows. He also plans to scale investment in Siren Craft, a tech-enabled system that helps baristas prepare orders more efficiently, with a goal of fulfilling orders in four minutes or less. These changes are part of Niccol’s larger strategy to simplify the menu, eliminate extra charges, and streamline operations to align with Starbucks’ core identity as a coffee company.
Despite the challenges facing Starbucks, Niccol remains optimistic about the future of the business. He believes that by focusing on the core identity of Starbucks and consistently delivering a great customer experience, the company can win back customers and return to growth. Niccol acknowledges that the company’s financial results have been disappointing, with global comparable store sales declining by 7% in the most recent quarter. However, he is confident that by making strategic changes and improving the mobile ordering experience, Starbucks can regain momentum and attract customers back to its stores.
In addition to improving the mobile ordering system, Niccol is also focused on creating separate areas inside Starbucks stores specifically for mobile orders. This strategy aims to enhance efficiency and ensure that customers who place mobile orders receive their orders quickly and accurately. By implementing these changes, Niccol hopes to address the issues that have plagued the mobile ordering experience and create a more seamless and convenient process for customers. These changes are just one part of Niccol’s larger plan to reset the foundation of Starbucks and set the stage for future growth in the business.
Niccol’s approach at Starbucks is methodical and focused on addressing the root causes of the company’s challenges. By simplifying the menu, reducing complexity, and optimizing operations, he hopes to create a more streamlined and efficient business model that aligns with Starbucks’ core identity as a coffee company. While there are significant challenges ahead, Niccol is confident that by staying true to Starbucks’ roots and consistently delivering a great customer experience, the company can overcome its current struggles and return to a path of growth and success.
