How is Starbucks treated? Starbucks CEO Howard officially announced the company's reshaping plan!

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On September 13th local time, Starbucks interim CEO Howard officially announced Starbucks reshaping plan at the investor briefing. The plan, he says, is just about reshaping Starbucks and what to do, not what needs to be done.

Mr Howard said increased investment in store operations and employee benefits would boost sales and profits and put the company on track to turn things around in 2024.

So the secret of reshaping: in order to provide a better customer and barista experience, the company will plan to improve employee benefits, rethink the third space, innovate product production, simplify production time, expand digital convenience, and so on.

-improve employee welfare and management training

Howard says Starbucks partners are at the heart of the reshaping plan and the core of the company. Therefore, it will bring more value to partners in terms of salaries and benefits.

It will also increase investment in recruitment, induction training and store equipment to improve customer consumption experience. The current plans to be implemented in fiscal year 2023 include:

Adjust the working hours required by partners and integrate other opportunities to increase overall pay; provide higher sick leave pay, new savings, student loan management incentives and mental health support.

According to the survey, the store has more than three years of management, weekly sales and customer satisfaction can be increased by 13%.

As a result, store managers will be given new leadership training, redesigned schedules and decision-making programs to retain more experienced managers. And enable managers to focus on core functions, thereby improving store partner morale and overall performance.

-rethink the third space

X redesign the third space to enable customers to create a better and more convenient consumer experience, so that customers can feel the convenience of Starbucks third space no matter where they are by enhancing retail and digital services.

For a long time, the third Space has created a more relaxed and free place for customers to talk freely with its unique Starbucks experience, but it is limited to physical stores. With the impact of the epidemic, more and more consumers have reduced their spending in stores, and the effect of the third space has not been brought into full play.

So Starbucks decided to build different models of stores, in addition to the large-scale store model that provides space for customers, but also to create small-scale takeout stores, where customers can place orders on their own, or choose to deliver them to their doors. and speed-up stores. By strengthening the distribution of the network and diversified store models, Starbucks can further meet the needs of different customers.

-upgrade beverage production system and equipment

In order to improve the experience of customers and baristas, Starbucks has developed a new beverage production system to design new lines for cold drinks bars, which can effectively improve the convenience of baristas' beverage production and reduce the waiting time for guests.

To this end, Starbucks is developing a new coffee machine, simplifying the beverage production process, reducing the time and steps to make cold drinks, improving productivity, and finally buying time for partners to establish connections for customers.

Cold extract coffee has been loved by consumers since it was put on the shelves, but it takes more than ten hours to soak every time to make cold extract coffee.

So Starbucks is developing a way to extract cold-extracted coffee liquid using the Cold Pressed Cold Brew system. This new technology can extract the coffee liquid under low pressure and cold in a few seconds, which is as convenient as the extraction of espresso.

For dripping coffee, Starbucks has also developed a new machine! Similar to the previous tedious coffee machine, which requires partners to grind coffee powder and make it in advance, the new machine is similar to the espresso machine, but without the pressurized extraction function, coffee beans will also be stored in special warehouses.

At the click of a button, the coffee machine will automatically grind and brew in 30 seconds, reducing the weakening of the aroma and flavor of pre-ground coffee powder over time, and ensuring the freshness and high quality of freshly brewed coffee.

-simplify the steps of beverage making and food heating

John Culver, chief operating officer of Starbucks, said: the increasing complexity and time-consuming sales of cold drinks (Frappuccino) have led to bottlenecks in Starbucks stores. In research and testing, it is found that the new beverage making system can reduce the production time of Frappuccino by nearly 1pm 3, and the steps will be simplified.

In terms of heating time, there will also be a new oven. Some food stores with high calorie can apply for ovens that can be heated in batches, or hot food cabinets that can keep warm, reducing the waiting time for guests who need to pick up meals quickly.

-expand digital convenience

The reshaping plan also includes technologies that make Starbucks' customer experience more personalized and easier, while also giving baristas time to focus on creating more connections.

Includes a dedicated mobile order pickup channel; a more personalized delivery experience that identifies Starbucks reward customers and provides recommendations based on order history; improved timing algorithms to create more accurate waiting times on mobile orders; and easy payment options, customers do not need to take out credit cards or even Starbucks applications.

In addition to these, the Starbucks reshaping plan also says it will accelerate Starbucks' international leadership and expects 2/3 of global retail growth over the next three years to come from international business, with the Chinese market particularly important.

Therefore, Starbucks China released its strategic vision for China in 2025 on September 14, sorting out a plan for the development of the Chinese market on the basis of the reshaping plan.

Although Howard is behind the reshaping plan, a new CEO, Laxman Narasimhan, is needed to follow up.

Over the next six months, Howard will travel with Laxman around the United States and around the world, during which he will continue to lead Starbucks on the board, set the tone for the company's development, and do all he can to ensure that Laxman is successful.

Howard expressed his trust in Laxman with the phrase "the perfect person to lead a perfect company at a perfect time".

Talking about how to create value for Starbucks, Laxman said: employees' expectations must be met or even exceeded in order to exceed consumer expectations and have better products and innovation. Ice brings differentiated experiences in the real world and the digital world, and has a positive impact on the community.

Let's wait and see what Starbucks will do in the future.

Photo: Starbucks website