Starbucks Completely Changing How It Makes Its Beverages
Starbucks is seriously rethinking how it runs things, and that includes completely changing the way it makes its beverages.
This article is more than 2 years old
On the heels of multitudes of Starbucks stores attempting to unionize nationwide, the company is seriously rethinking how it runs things. A deep dive into the problems plaguing its workforce revealed that Starbucks’ restaurants need serious overalls. As a result, the chain has begun experimenting with new ways to make its beverages and improve working conditions for its employees.
Specifically, Starbucks is looking into improving the pace and efficiency of how its Frappuccinos are made. The process, as it is now, is very time-consuming. This can be quite stressful for employees trying to output Frappuccino after Frappuccino at the same time they are contending with an influx of customers. That is a situation that is good for neither the Starbucks worker nor the customer.
Natarajan Venkatakrishnan, who heads up Starbucks’ workplace testing center, has recognized this and has been looking into ways to rectify it. Venkatakrishnan is honing in on replacing outdated equipment as well as restructuring the flow of how baristas are trained to make the popular beverages. Once all of the kinks are worked out, the improvements should start being implemented in stores.
There are so many Starbucks stores in desperate need of improvement now, too. Katie Young, who is senior vice president of global growth and development at the company, is in charge of identifying the stores most in need of the change. So many Starbucks stores were designed well over a decade ago. Back then, demand was not as high as it is today. Thus, the policies and appliances that worked seamlessly back then no longer fit the bill.
The Wall Street Journal highlighted two prominent examples. For starters, many stores that were designed to service 1,200 customers in a day are now averaging far north of that figure. It’s something that’s noticeable in revenue, as well. Stores that once generated $1 million in revenue in a year have now tripled that figure to $3 million. Starbucks locations like these are the ones suffering most at the hands of outdated workflows and equipment.
Thankfully, ever since Howard Schultz resumed the role of CEO on an interim basis, the company has prioritized fixing the things that have gone seriously awry. The onslaught of unionization efforts nationwide didn’t happen in a vacuum, after all. It obviously took a slew of extenuating circumstances that led large swaths of employees to seek union representation. The store and equipment revamps are a part of how the company is addressing the overwhelming employee contention.
While Shultz and his leadership team certainly have employee satisfaction on their radar, the company is still in the business of making money. Starbucks’ revenue took a hit during the pandemic. And while the company has certainly bounced back, Shultz is aiming to enhance the areas of the business that are bringing in the most cash. Namely, the interim CEO is looking to bolster the drive-thru part of the business. Ever since Starbucks launched drive-thru locations in 2009, the service has only been gaining momentum. To date, Starbucks drive-thrus account for 50% of the coffee chain’s overall sales. To further capitalize on that, Shultz wants 90% of all new Starbucks locations to be built with drive-thrus in the coming years.
