Starbucks Is Spending $450 Million to Upgrade Its Stores
The company announced that it would be doubling down on new technology to increase efficiency.
The infiltration of complicated, custom-made drinks from Starbucks customers is stressing out baristas, as the stores are not equipped to make these complicated drinks quickly.
This is why at an investors conference in Seattle on Tuesday, Starbucks announced that it would be investing $450 million to improve the efficiency of its stores, including the opening of 2,000 new locations by 2025.
AP reported that drive-thru orders make up 50% of all U.S. sales at Starbucks now, and that delivery demand has increased an estimated 24%. Customizable cold drinks make up an estimated 75% of U.S. beverage orders.
Plus, store designs that haven't changed since their hang-at-the-coffee-shop heyday are not in line with what today's consumers are looking for — faster and more efficient coffee pickups.
The company will roll out the Siren System (named after the character on its iconic logo), a new workstation set up for baristas that "significantly reduces the time and number of steps to make cold beverages."
In 2023, Starbucks will also introduce the Cold Pressed Cold Brew system which promises to deliver cold pressed coffee to customers in a matter of seconds, versus the 20-hour, 20-step process it currently takes.
Meanwhile, Starbucks is doubling down on delivery with the national expansion of its partnership with food delivery company DoorDash, set to roll out in fiscal 2023.
"Guided directly by our partners, we have already begun to take action on an inspired roadmap to build the future of Starbucks, all while staying true to our mission of uplifting communities through a shared love for coffee and further extending our coffee leadership and innovation," interim CEO Howard Schultz said in a company release.
Starbucks also plans to up benefits and perks for employees, including increased sick time and mental health support, increased digital tipping opportunities, and student loan management benefits.
The company did not specify exactly how and where the $450 million would be distributed.
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