Starbucks CEO Tackles Mobile Order Dilemma
Starbucks CEO, Brian Niccol, aims to transform the company into a classic coffeehouse. However, he faces a unique challenge: the popularity of mobile orders, which disrupt customer service.
Niccol highlighted mobile ordering as a bottleneck, emphasizing that it hinders baristas from providing a personal touch to in-store customers. To address this, Starbucks will employ an algorithm to sequence mobile orders for improved efficiency.
This issue contrasts with Niccol's experience at Chipotle, where he oversaw the introduction of mobile ordering. While at Chipotle, Niccol believed that less than half of customers utilized digital ordering channels.
Under Niccol's predecessor, Laxman Narasimhan, Starbucks prioritized mobile orders to drive traffic through its rewards program. However, Niccol aims to return Starbucks to its roots, which includes comfortable seating, ceramic mugs, and personalized messages on coffee cups.
Starbucks is piloting an in-store prioritization algorithm to move away from the first-come, first-served mobile order system. Niccol noted the use of this algorithm in one of the company's stores, resulting in smoother order flow and improved customer connections.