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Starbucks Introduces New System to Improve Order Efficiency and Customer Experience

BusinessStarbucks Introduces New System to Improve Order Efficiency and Customer Experience

Starbucks cafes across the country are implementing significant changes to improve order efficiency and reduce wait times, anticipating a surge in mobile app orders. The core of this overhaul is the “Siren Craft System,” designed to simplify baristas’ tasks and accelerate service. Already in use in over 10% of Starbucks’ 10,000 stores, the system will be rolled out across North America by the end of July.

The changes come as Starbucks seeks to address disappointing second-quarter results, including a 3% drop in U.S. same-store sales and a 7% decline in traffic. CEO Laxman Narasimhan emphasized the need for store improvements to better handle unpredictable customer patterns. Katie Young, senior vice president of store operations, highlighted the importance of adapting to unforeseen demands, especially with the app now open to non-rewards members, which is expected to boost traffic.

The Siren Craft System was developed based on feedback from employees to tackle issues hindering beverage preparation and customer interaction. One notable change includes introducing a “play caller” role, akin to an expediter in a restaurant, to manage logjams and assist with tasks like restocking and handling unexpected crowds.

Additionally, Starbucks will alter the order of beverage preparation. Previously, cold drinks were prioritized, often causing delays for hot beverage orders. Now, drinks will be made in the order they are received, streamlining the process and reducing bottlenecks.

Baristas will also gain more control over the digital production manager, an iPad system that sequences orders from various channels, allowing for greater flexibility in prioritizing orders. The app’s changes have added urgency to the Siren training rollout, with the goal of preparing stores for increased traffic.

The potential rise in orders comes amid ongoing concerns from baristas about staffing and scheduling, issues frequently raised by unionized employees. Starbucks asserts significant progress has been made in these areas over the past two years.

Peter Saleh, managing director at BTIG, noted that while Starbucks has traditionally moved quickly with new initiatives, the Siren System has taken longer to implement. However, Young reported that the system has already led to a “material reduction” in wait times, and stores using the Siren System have seen an increase in peak-time customer service, contributing to comparable sales growth.

Alongside process improvements, Starbucks plans a gradual rollout of new equipment under the Siren moniker, including custom ice dispensers, milk-dispensing systems, and faster blenders to further enhance efficiency. By year’s end, 10% of stores will have the new Siren equipment.

Starbucks aims for customers to experience better-managed wait times and a positive atmosphere, even during busy periods. The comprehensive approach promises to optimize operations and enhance overall customer satisfaction.

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