Starbucks Speeds Up—Big Changes Ahead

‍

New Starbucks CEO Brian Niccol has moved quickly to transform the world’s largest coffee chain, with improvements to its speed of service as a stated focus.

‍

Niccol wants drinks delivered to cafe customers in four minutes, a step up from current wait times:

‍

• Nearly half of in-store orders take longer than four minutes
• Mobile orders average six minutes to complete

‍

Part of the problem is the company’s ordering system. Starbucks is testing a new algorithm to better sequence orders coming into a cafe based on when they should be made. The new system also better accounts for scheduled pickup times for mobile orders.

‍

Moreover, the chain is reducing its menu to free up its baristas to focus on its best-selling items. Starbucks removed 13 beverages in March and intends to reduce it by 30% more by the fall.

‍

A recent adjustment to relocating brewed coffee stations closer to the cash register has also helped baristas serve drinks to in-store customers more quickly.

‍

Investors appear optimistic about the company's new direction, with Starbucks' share price rising ~29% since Niccol took over in August 2024.