While competitors focus on value deals and viral beverages to attract price-sensitive customers, Starbucks is shifting its focus to its core foundation—in-store hospitality—in an effort to revitalize sluggish sales and distinguish itself in a competitive market.
The coffee giant has launched its “Green Apron Service” program, a significant investment in employee training designed to foster warmer, more engaging customer interactions. The initiative, part of CEO Laxman Narasimhan’s broader “Triple Shot Reinvention” strategy, aims to make store visits a consistent and positive habit for customers by emphasizing human connection.
To support this renewed focus on service, Starbucks is implementing operational changes, including new “Smart Queue” technology. This system uses algorithms to optimize staffing and scheduling, ensuring employees are positioned effectively throughout the day to handle both in-person and digital orders, which now account for over 30% of sales.
“The strategy is to reconnect our partners with our customers,” said Chief Operating Officer Mike Grams, who joined the company in February after nearly three decades at Taco Bell. “When you walk through that door, you’re greeted with a smile. You are greeted again at handoff, a perfect cup of coffee… and you’re met with that connection.”
The initiative’s success will be measured against tangible metrics, including customer experience scores, foot traffic, and store productivity. A key benchmark is the ability to deliver customized drinks in four minutes or less. Early results from a 1,500-store pilot have been promising, showing improvements in sales, transactions, and service times, with 80% of in-cafe orders meeting the four-minute target.
While the emphasis is on personal connection, Starbucks recognizes that speed remains critical for many customers. Grams noted that the hospitality initiative will be applied across its multiple channels, leveraging the company’s strong digital business, over 7,000 drive-thru locations, and a vast network of nearly 20,000 cafes in North America.
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