The company is also planning changes to its mobile ordering structure
Things are changing at Starbucks.
During the companys recent first quarter earnings call, CEO Brian Niccol shared some changes consumers can expect throughout the year.
Some of the biggest changes: a shorter, simplified menu and updates to the mobile ordering system.
Food and drinks are being cut
During the call, Niccol explained that around 30% of the companys food and drinks menu will be cut over the course of the year, with the primary goal being a simpler ordering process.
Weve been focused on simplifying our menu to position partners for success, improve consistency, drive customer satisfaction, and enhance our economics, Niccol said during the call.
In the coming months, youll see us begin to optimize our menu offerings, resulting in a roughly 30% reduction in both beverages and food SKUs by the end of fiscal year 2025.
While there was no mention of which items are on the chopping block, Niccol explained that the company is focused on maintaining customers most-loved products, while also creating new drinks and snacks that are geared towards those favorites.
Niccol also said theres no timetable on when customers can expect these updates. He plans to use this year to track customers habits and the menu changes are expected by the end of the year.
Upgrades to the mobile ordering system
In addition to menu changes, Niccol shared that Starbucks will also be testing out new methods for its mobile ordering system.
In an effort to avoid congestion in the pickup area, Starbucks will begin testing out time slots for mobile orders. This means that customers will be able to schedule their pick-up order by selecting a designated pick-up window.
The goal is to allow baristas the appropriate amount of time to cater to walk-in customers, drive-thru customers, and mobile order customers with less chaos at the pick-up station.
The place where we run into problems, frankly, is the fact that there is just no gating on the mobile orders, Niccol said during the earnings call. All these orders come flooding in. Frankly, they come flooding in faster than even our customers can get there, so all these drinks are sitting on the counter, and its at the expense of providing any other experience for a customer thats right in the store.
Starbucks will begin testing out new sequencing measures for mobile orders, as well as the time slot-scheduled pick-up times.
What else is new?
In addition to these updates, Starbucks has made some other changes recently in an effort to appeal to consumers:
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Canceling the upcharge for non-dairy milk options
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Coffee condiment bars which had been taken away during the COVID-19 pandemic have returned to stores.
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Later this year, Starbucks plans to roll out digital menu boards to update its offerings for different times of day, seasons, and more.
Photo Credit: Consumer Affairs News Department Images
Posted: 2025-01-29 19:50:07
