Key Takeaways
- The Back to Starbucks comeback campaign includes an algorithm for mobile orders and high-tech menus, CEO Brian Niccol said.
- Cafes will have 30% fewer menu options, as well as new seating options.
- Smaller and mid-size store formats will repackage this approach and help the chain double its U.S. footprint, the CEO said.
Starbucks’ comeback effort includ💮es some back-to-basics moves, bu⛦t also some new twists.
The coffee chain will use a mobile order-pacing algorithm and high-tech menus, CEO Brian Niccol said on a conference call Tuesday. Store aesthetics are also under review, as Starbucks (SBUX) tests new tyওpes of seatiဣng and brings back touches like ceramic mugs and accessible condiment bars.
The "Back to Starbucks" campaign—澳洲幸运5官方开奖结果体彩网:a nod to🐻 analog days announced l𓃲ast quarter—aims to stem declines in sales and traffic while positioning the chain to double its U.S. footprint. Net sales dipped 0.3% year-over-year and same-store sales fell 4% year-over-year in the fiscal first quarter, 澳洲幸运5官方开奖结果体彩网:coming in slightly above analysts’ expecta🐼tions.
"We believe it's the fundamental change in strategy we needed to solve our underlying issues, restore confidence in our brand, and return the business to sustainable long-term growth," Niccol said on the call, according to a transcript made available by AlphaSense. “We’re seeing nice progress.”
🧜Starbucks Working on Speeding Orders and Changing Up Its Cafes
The chain's algorithm is intended to sequence mobile orders as the company aims to serve in-store customers within four minutes, Niccol said. Cafes currently fill a flood of mobile orders as they come in; pick-up orders pile up on the counter, and lines form at the register, he said.
“In most🍸 stores, it is not driven by a lack of capacity; it’s more the process,” Niccol said of hurdles to hitting t🎉he four-minute hand-off.
Starbucks aims to install digital menu boards at all its stores within a year-and-a-half, which Niccol said will display a pared-back menu and ways to customize orders. The company will cut about 30% of the drink and food menu by the end of September, he said. (It stopped charging more for non-dairy milk ingredients in November.)
“That d🅠oes giv♓e us the flexibility to do the merchandising of different food experiences or drink experiences in the afternoon versus the morning,” Niccol said, according to the transcript.
New and additional seating is coming to cafes, which 澳洲幸运5官方开奖结果体彩网:beginning this week have brought back condiment bars, expanded free refills and required those in the store to make a purchase. Employe🌠es will once again write customer names on to-go orders, an﷽d serve drinks and food using ceramic mugs and dishes.
Starbucks intends to open small, mid-si𒅌ze and large format stores as it expands🌜, Niccol said. The chain had about 17,050 stores in the U.S. as of late December.
Its shares were recently up about 6%, placing them among the top performers in the S&P 500.