Here’s why Starbucks must up its retail technology game
The time has come for Starbucks to go big into technology that places more control in the hands of consumers while minimising the number of baristas required to work in stores.
That’s the view of Brittain Ladd, a former Amazon exec and supply chain consultant.
Ladd made the observation as Starbucks announced during its 30th annual meeting of shareholders that Howard Schultz, who transformed an 11 store Seattle chain into a global coffee giant, was returning to run Starbucks on an interim basis after CEO Kevin Johnson said he would retire next month, following 13 years of service.
In a LinkedIn post, Ladd said: “What I envision is similar to a strategy I designed for Jamba when I worked for the company as a consultant at Deloitte.”
“At a high level, the strategy is simple: Maximise the ability of customers to self-order using an app or a kiosk in the store; Provide customers with a reusable cup they can use to receive their coffee or tea; Utilise Just Walk Out with Your Coffee technology making it easy for customers to come and go as they please.”
Starbucks must also reimagine its supply chain to ensure better product in-stock levels, Ladd argues.
“I’m amazed at how poorly they manage their supply chain,” he commented
As for the next CEO, his vote goes to Darren Rebelez the current CEO of Casey’s.
Building our future
At the aforementioned 30th annual meeting of shareholders, Starbucks said it would deploy new handheld ordering devices to stores.
It is planning to launch Shift Marketplace, an app designed to make it easy for partners to switch and offer shifts virtually, along with a waste and recycling app.
And it will also expand the Starbucks safety Lyft programme to provide rides home for partners after dark.
Plans are also afoot to expand to 55,000 stores in over 100 markets by 2030.
“I’m so proud of all we’ve done these past two years and how our partners inspired the best ideas to lead us through the pandemic,” said Rossann Williams, President at Starbucks North America.
“We are just coming out of one of the most complex times of our lives, and I’m proud of how we figured it out together, in service of each other, our customers and our communities.”
“And we are going to use this exact same approach as we build our future, the way only Starbucks can.”