As companies lean into value offerings and buzzy beverages to lure price-sensitive consumers, Starbucks is doubling down on its plans to get back to basics by leaning into hospitality at its cafes.
The coffee giant aims to stand out on guest experience in a cutthroat consumer environment as it tries to boost lackluster sales.
Last week, the company began training baristas on its new “Green Apron Service” program as part of CEO Brian Niccol’s “Back to Starbucks” plans, which have emphasized friendlier cafes and a human touch like Sharpie drawings on cups. Green Apron Service builds on that, relying on warm and engaging interactions with customers in the hopes of making Starbucks visits a habit.
The program is backed by changes to ensure proper staffing and better technology to keep service times fast. It was born out of growth in digital orders, which now make up more than 30% of sales, and feedback from baristas.
“The strategy is to reconnect our partners with our customers,” Chief Operating Officer Mike Grams told CNBC from a newly revamped store in Seattle on Monday.
“When you walk through that door, you’re greeted with a smile. You are greeted again at handoff, a perfect cup of coffee … and you’re met with that connection.”
Investors will get another look into how Niccol’s turnaround plans are working when the company reports earnings after the market close Tuesday. Starbucks shares have climbed about 2.7% this year, trailing the 8.6% gains of the S&P 500, as Wall Street debates how long it will take Niccol to improve the chain’s performance. Since Niccol took the reins last September, the stock is up just under 3%, and has climbed nearly 25% on a one-year basis.
Niccol is trying to jump-start the coffee chain’s sales. Last quarter, same-store sales fell for the fifth quarter in a row.
Grams and the push for more welcoming cafes will play a major role in that effort.
Grams was appointed as chief operating officer in June, overseeing global coffeehouse development, the company’s worldwide supply chain and its North American coffeehouses. He came to Starbucks in February after nearly three decades at Taco Bell, where he was previously was the chain’s president and global chief operating officer. Niccol was once Taco Bell’s chief executive.
The Green Apron Service push is the largest investment the company has ever made in hospitality and its store employees, Grams said. The company did not provide a dollar figure for the investment.
Part of the plan involves Smart Queue technology, which uses algorithms to enhance staffing and scheduling, to help baristas deliver more consistent and higher-quality service, Grams said. The company wants customers to experience consistency in service quality whether they order in store or online.
“You will see it show up in different ways,” he said. “You may see a digital host out front who is navigating that experience … it can be an extra person at the drive through. The idea is just really making sure that we’ve…
Read More: Starbucks rolls out Green Apron Service ahead of earnings
