New Delhi

Brian Niccol is all set to step into his new role as Starbucks's CEO on September 9. As he takes over the charge, his top priority will be addressing the ongoing glitches in the company's mobile application. Former CEO Howard Schultz, who remains involved with the coffee giant, has labelled the application as Starbucks' "Achilles heel" on an episode of the 'Acquired' podcast in June. This issue has weakened the brand image of the company and has caused immense operational inefficiencies related to same-store sales. 

Advertisment

Mobile orders now represent nearly a third of Starbucks' sales, but this dependence has brought significant challenges. The surge in digital orders often leads to longer wait times, overwhelming baristas and frustrating customers. What was designed to enhance convenience has, in many cases, disrupted the in-store customer experience, driving away patrons who find the process more stressful and demanding than satisfying. 

Former CEO Howard Schultz, who was involved in positioning Starbucks as a "third place" between work and home, witnessed these issues first-hand during a random visit to a Chicago store. He observed overcrowded counters, long lines, delays and a chaotic atmosphere that completely contrasted with the welcoming, community-oriented environment that Starbucks was once known for. The convenience of digitally ordering through a mobile, while beneficial for on-the-go customers, has unintentionally compromised the brand's core value of creating a calm and relaxed social space. 

This operational strain not only affects the overall customer experience but also places immense pressure on baristas, leading to burnout and dissatisfaction. As Starbucks looks to the future, addressing these significant challenges will be crucial. Incoming CEO Brian Niccol faces the task of refining and rejuvenating the mobile ordering process to bring down wait time and restore the flow between digital convenience and the in-store experience that made Starbucks an adored destination. 

Advertisment

Brian Niccol brings talent and experience to the table 

Niccol brings invaluable experience from his time at Chipotle, where he successfully dealt with similar challenges by simplifying digital orders and optimizing operations. At Chipotle, a dedicated digital order preparation line and the introduction of drive-through lanes for online pickups termed "Chipotlanes" immensely helped the company impactfully manage its booming digital sales. 

Steps taken by Starbucks to deal with the problem 

Advertisment

Starbucks has started implementing fundamental changes to tackle these challenges, including new technological equipments and the upgradation of mobile applications. Still, the rollout has been sluggish with only 40 percent of North American stores anticipated to receive the new equipment by 2026. 

Brian will have to accelerate these efforts to restore Starbucks' reputation and boost sales to generate higher revenue. Reducing customer wait times and making the process seamless will go a long way in alleviating the strain on baristas. If he can convincingly deal with these pressing issues, he's likely to gain the trust of investors and customers alike, placing Starbucks in for a successful turnaround.