Starbucks reveals plan to keep customers in stores longer
Over the last few years, Starbucks has heavily emphasized making its cafés more efficient for customers on the go, aiming for shorter wait times in-store and encouraging the use of the Starbucks app for a faster and more convenient ordering process.
However, Starbucks has struggled over the last few quarters, reporting sales declines and slower store traffic. This seems to be a reflection of dissatisfied customers who have opted to get their morning “cup of Joe” at rival coffee shops instead.
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“This is back to the core of what makes Starbucks a unique experience.”
Since starting as Starbucks’ new CEO, Brian Niccol has repeated this quote to state his plan to reverse the company’s declining sales by returning to Starbucks’ roots and personalizing the coffee shop experience.
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According to a study by Placer.ai, mobile orders make up almost a third of total Starbucks orders, with most customers’ visits lasting five to nine minutes at most.
This indicates that many Starbucks customers likely prioritize convenience by grabbing a drink to-go rather than taking advantage of the coffeehouse amenities.
Starbucks announces the reintroduction of multiple nostalgic fan favorites
For picky coffee drinkers, the Starbucks condiment bar was the best invention ever created by any coffee shop since it allowed customers to build their own drinks. Customers could select their milk of choice and add as much to their drinks as desired. They could also top any drink with cinnamon, chocolate, and even vanilla bean powder to add a flavorful twist.
Sadly, the beloved condiment bars were removed during the pandemic, forcing coffee snobs worldwide to limit their customization to the baristas’ discretion, hoping they would get the order just right.
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During Starbucks’s latest earnings call, CEO Brian Niccol revealed that the company will return the condiment bar and several other features. These include reintroducing ceramic mugs to make Starbucks feel more like a home rather than an establishment and bringing back handwritten notes on to-go cups and bags to foster better customer connections.
“The ceramic mugs and glasses and plates just add another level of like, hey, this is a spot where I can slow down, take a minute, whether I’m connecting with others or just taking a minute for myself,” said Niccol in an earnings call.
The reintroduction of all these nostalgic features aims to elevate Starbucks’s in-cafe experience and encourage customers to make longer visits, returning Starbucks to being the third space it once was.
“I made a commitment that we’d get back to Starbucks, focusing on what has always set Starbucks apart – a welcoming coffeehouse where people gather and we serve the finest coffee handcrafted by our skilled baristas,” said Niccol.
Enjoying a cup of coffee at Starbucks comes with perks and incentives
Making Starbucks (SBUX) your third space also comes with a few perks since the company will return the free in-café refills on hot and iced brewed coffee and tea at participating locations for non-Starbucks Rewards members.
In addition to the coffee perks, Starbucks will be closing underperforming shops to invest in building new locations and revamping old ones to make them more welcoming, cozy, and warm, encouraging customers to stay longer.
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Starbucks will also be refreshing its menu with a simpler version focusing on coffee and quality rather than the number of customizations, which tend to complicate orders. This will improve the experience for customers and employees equally.
“To deliver a great customer experience, we also have to deliver a great partner experience,” said Niccol.
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