The news: Starbucks will rely on kiosks to shorten wait times at high-traffic locations like airports and hospitals, per a Bloomberg report.
The format is “a big priority for quarter four,” COO Mike Grams said in an internal meeting. Starbucks’ Q4 ends in September.
The strategy: At first blush, the move seems at odds with the company’s push to make its stores more inviting places where customers linger—especially given Starbucks’ recent announcement that it would phase out pickup-only stores for being “overly transactional.” However, the kiosks make perfect sense in environments like airports where customers are primarily interested in getting in and out fast, and thoughtful touches like hand-written names on cups are less likely to be noticed.
- The new kiosks will likely only be present in select licensed stores that serve “speedy, time-sensitive customers,” per Grams.
- That would give Starbucks the best of both worlds: the ability to deliver speed and convenience when customers need it most, while also differentiating it from competitors with high-touch, high-quality service in the rest of its cafés.
Our take: For all Starbucks’ talk about building the community coffeehouse, it recognizes that speed and reliability are integral to keeping customers engaged with the brand. While there are other pillars the company needs to execute to complete its turnaround, being able to deliver efficient service when it’s needed most will bolster its reputation for reliability and encourage more frequent visits.
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