Starbucks says new technology is helping fix one of its customers’ biggest gripes: waiting too long for their coffee. A technology pilot at dozens of U.S. locations has shaved 2 minutes off the average time to make a beverage ordered inside cafes. Starbucks said 3/4 of orders at the test cafes’ busiest times were completed in 4 minutes or less, nearing its service-time goal, while not delaying mobile orders.
The company plans to soon expand the pilot to hundreds more of Starbucks’s 10,000 U.S. locations as it tries to recapture lost sales and improve customer sentiment. Starbucks is looking to jolt its business after reporting four consecutive quarterly declines in same-store sales. Customers have balked at the chain’s prices and lines, turning to rivals for cheaper and faster coffee, reports The Wall Street Journal (April 30, 2025).
Starbucks’ CEO has said it needs to improve its speed of service, particularly during the morning rush. Earlier this year, about half of in-store orders took longer than 4 minutes. Mobile orders averaged around 6 minutes to complete. Baristas currently handle orders on a first-come, first-served basis. The new algorithm will determine sequencing across cafe counters, drive-throughs and apps.
Starbucks also brought on six engineers who had worked for a software startup that helped restaurants better manage delivery orders. The team helped build the new proprietary order-scheduling algorithm in-house.
Starbucks is also using the new technology to experiment with scheduling specific pickup times for mobile orders. Baristas are learning to time the making of mobile orders based on factors such as order complexity, aiming to prevent drinks sitting out for minutes before a customer arrives. The new order-sequencing algorithm is “rules based,” following a predetermined “if-then” structure, rather than being powered by AI.
The company is harnessing technology in other areas, including improving its staffing levels. Currently it also has a 700-store pilot aimed at putting the right number of workers in cafes based on demand.
Classroom discussion questions:
- What process improvement tools in Chapter 7 could Starbucks use to improve ?
- From your own experience, what OM suggestions would you give the firm?