From CNBC: 2024-08-18 09:00:01

Starbucks struggles with mobile order chaos as new CEO Brian Niccol takes charge. Operational issues, decline in sales, and mobile app woes contribute to customer frustration. Mobile orders account for one-third of sales and complicate baristas’ work. Shareholders want solutions to improve in-store experience and reduce wait times.

Niccol faces the challenge of rebranding Starbucks as a convenient “third place” amidst mobile order dominance. Former CEO Schultz points out technological shortcomings and lack of operation adjustments. Starbucks workers unionize over mobile order stress and wait times. New equipment and app updates aim to streamline service and reduce barista strain.

In contrast, Chipotle CEO Niccol boosts digital sales through promotions and innovation to handle online demand successfully. Digital sales account for 35% of Chipotle’s revenue, with online ordering rising since 2019. Chipotle utilizes second prep lines, Chipotlanes, and automation to enhance customer experience. Mobile makeover efforts continue to improve Starbucks’ service. Niccol seeks to implement solutions based on Chipotle’s success.



Read more at CNBC: Incoming Starbucks CEO Brian Niccol may target mobile app