Amidst the rising costs of daily indulgences, Starbucks has decided to step in with a wallet-friendly proposition for its customers. Recognizing the essential role of breakfast and the widespread love for coffee, the renowned coffee chain has introduced a tempting new pairings menu.
Years ago, some people would spend hours at Starbucks. Today, it’s a takeout counter. At many Starbucks locations, you’re lucky to find anyone sitting down.
People are also reading… By the time Michelle Eisen joined Starbucks in 2010 as an employee in Buffalo, New York, her store was always packed during the holidays with people meeting friends and family. She witnessed first dates and helped a customer’s propose to his spouse, writing “will you marry me?” on a cup.
Starbucks’ sales in its home North America market dropped 3% last quarter. Schultz, who stepped down as Starbucks’ CEO and retired from Starbucks’ board of directors last year, wrote a lengthy message on LinkedIn in May about the company’s issues. But by prioritizing speed — “throughput” in corporate parlance — Starbucks hurt the appeal of sitting down for coffee in stores, some critics say.
The company was hesitant to build out drive-thru stores during the 1990s, fearing they would take away from the third place appeal. In 2014, Starbucks debuted its mobile ordering system, which allowed customers to place pickup orders from their smartphones without having to interact with an employee. Mobile ordering also gave the company more data on consumers and helped push them to Starbucks’ loyalty program, benefiting Starbucks because loyalty members are its most profitable customers.
Mobile ordering “commoditized” Starbucks by leading it to focus on order volume and efficiency, said Joe Pine, the co-founder of consultancy Strategic Horizons who wrote a recent article about Starbucks’ struggles in Harvard Business Review.
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