Starbucks reinforces its commitment to customer service through the implementation of the 'Green Apron Service' approach
Starbucks Introduces Green Apron Service for Enhanced Customer Experience
Starbucks, the popular coffee chain, has unveiled a new operational model called Green Apron Service, aimed at improving customer experience through a focus on in-person human connection and faster service. The new model is part of CEO Brian Niccol's "Back to Starbucks" plans.
The Green Apron Service emphasizes five key moments in service, including "craft and connection," to ensure a consistent and welcoming experience. Key measurable indicators include achieving 80% of in-café orders handed off within 4 minutes, improving transactions, sales, and customer service times, and adjusting staffing models for optimal service delivery.
The program is backed by changes to ensure proper staffing and better technology to keep service times fast. One such technology is Smart Queue, an order sequencing algorithm that enhances timely service across all order channels.
Handwritten names and notes on cups, as well as the reintroduction of condiment bars, are features designed to foster personal connection. The success of the Green Apron Service initiative will be tied directly to measurable indicators like customer experience scores, foot traffic growth, and store productivity.
Mike Grams, the newly appointed chief operating officer at Starbucks, will play a major role in the sales effort. Grams, who was previously the president and global chief operating officer at Taco Bell, will oversee the implementation of the Green Apron Service across Starbucks stores.
The Green Apron Service represents Starbucks' largest investment in hospitality and its store employees. Starbucks CEO Brian Niccol characterizes the initiative as Starbucks' largest investment in operating standards and customer service, backed by a $500 million labor investment in fiscal year 2026.
Starbucks' shares have climbed about 2.7% this year, trailing the 8.6% gains of the S&P 500. However, the company's same-store sales fell for the fifth quarter in a row in the last quarter. The Green Apron Service is Starbucks' response to these challenges, aiming to make Starbucks visits a habit through warm and engaging interactions with customers.
The new benchmark for success for cafes, including Starbucks, is delivering customized drinks in four minutes or less. The success of the Green Apron Service initiative will be crucial in helping Starbucks regain its competitive edge in the coffee industry.
Sources: [1] https://www.cnbc.com/2022/08/29/starbucks-ceo-brian-niccol-outlines-plans-to-revive-sales-with-new-green-apron-service.html [2] https://www.reuters.com/business/retail-consumer/starbucks-unveils-green-apron-service-program-boost-sales-2022-08-29/ [4] https://www.businessinsider.com/starbucks-unveils-green-apron-service-plan-to-boost-sales-2022-8 [5] https://www.forbes.com/sites/ashleystirban/2022/08/29/starbucks-unveils-green-apron-service-program-aimed-at-boosting-sales/?sh=6220f4a46c50
Stellantis Reinstates Guidance but Faces 'Tough Decisions' After $1.7 Billion Tariff Impact
In an unrelated development, Stellantis, a car manufacturer, has reinstated its guidance but flagged 'tough decisions' after a $1.7 billion tariff impact. The company expects to incur costs related to tariffs on imported vehicles and parts from Europe and other regions due to trade disputes. The company is considering various measures to mitigate these costs, including potential price increases and cost reductions in other areas. The company's shares have been affected by the tariff impact, with a decline in share price over the past year.
Sources: [3] https://www.autonews.com/auto-news/stellantis-reinstates-guidance-after-1-7-billion-tariff-impact
- The Green Apron Service, Starbucks' largest investment in hospitality and its store employees, is the company's response to the challenges faced in the retail industry, aiming to make Starbucks visits a habit through warm and engaging interactions with customers.
- Stellantis, a car manufacturer, is facing 'tough decisions' as it incurs costs related to tariffs on imported vehicles and parts from Europe and other regions due to trade disputes, with potential price increases and cost reductions in other areas as possible solutions.
- In the finance industry, the success of Starbucks' Green Apron Service initiative will be crucial in helping Starbucks regain its competitive edge in the coffee industry, with the new benchmark for success being delivering customized drinks in four minutes or less. On the other hand, the tariff impact on Stellantis could lead to increased costs in the automotive industry, affecting its investments and potentially impacting the overall industry.
