We Made It Too Hard to Be an Ordinary Customer: Starbucks

As sales slump, chain promises to improve staffing, get a better handle on mobile ordering
By John Johnson,  Newser Staff
Posted Oct 24, 2024 10:05 AM CDT
We Made It Too Hard to Be an Ordinary Customer: Starbucks
The Starbucks logo.   (AP Photo/Charles Krupa, File)

Starbucks released its latest financial numbers this week, and they are, in a word, "dismal," reports the New York Times. Sales have declined both in the US (6%) and worldwide (7%), particularly in China (14%). In fact, Starbucks "took the extraordinary step of suspending its financial guidance for the rest of the year," notes CNN. CEO Brian Niccol also released a video promising a new—and simpler—strategy.

  • In short, "we've made it harder to be a customer than it should be," says Niccol.

  • Among the problems: Orders have become too complicated; multiple-drink mobile orders linked to promotions have led to long wait times during peak hours; and a heavy emphasis on the company's "rewards" program "inadvertently left many customers feeling neglected," per Quartz.
  • Maybe the biggest issue: That would be staffing, or lack thereof, especially during busy morning hours that have been intensified by all of the other issues cited. "The thorniest issue is how to bolster Starbucks' operations to improve speed of service and throughput, particularly in the key time-sensitive morning," analyst Sharon Zackfia of William Blair wrote in a research note, per Business Insider.
(More Starbucks stories.)

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