Tech stays top of mind as Starbucks maps future growth

The Starbucks Corporation could not be a more perfect example of the proverb, “A rolling stone gathers no moss.” Rampant global expansion, along with diversification and risk taking in the areas of product testing, employee relations, technology, and sustainability, have all propelled the coffee mega-chain into lifestyle-brand status.

But what happens when sales are up and the heart of your business—customer traffic to your store—is down? Starbucks’ 2018 first-quarter fiscal earnings report showed net revenues of $6.1 billion but also revealed a company that struggled to attract holiday shoppers (holiday traffic was down and limited-time holiday beverages and merchandise underperformed).

starbucks

President and CEO Kevin Johnson, who took over for Howard Schultz early in 2017, says the decline in transaction comps is fixable. “We have a clear understanding of the issue and are accountable to fix it just as we did with throughput at peak,” he said during the first-quarter earnings call. “The strength of our core customers, the performance of our business through the morning and lunch daypart, and upcoming food, beverage, and digital innovation, gives us confidence that we will be successful in doing so.”

But how?

Perhaps some answer can be found in Starbucks’ official mission statement, which it rolled out in 2008: “To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.” Here are five ways Starbucks plans to infuse that human connection into its future strategy.

Read more at QSR Magazine: https://www.qsrmagazine.com/consumer-trends/5-ways-starbucks-innovating-customer-experience

Advertisements