There’s an issue brewing for Starbucks even as it leads the pack in digital success: an overcapacity flood of mobile orders. Driving record sales through the convenience of app-based ordering, but cutting into efficiency and customer experience as the coffee giant finds itself at the seams—alongside bottlenecks at peak hours. As mobile transactions continue to soar, Starbucks is in a squeeze to refine its operations to avoid long wait times, crowded pickup areas, and frazzled baristas.
Mobile app popularity has become a major growth driver for Starbucks, with digital orders now significantly large in share of total transactions. Customers now appreciate skipping lines and picking up their drinks with ease, thanks to the advance placement of their orders beforehand. However, this success has thrown up some unintended implications, particularly at high-traffic locations where baristas are struggling to keep up with digital demand. During peak hours, in-store orders usually have to wait behind the queue of mobile orders, thus creating frustration on both sides of the counter.
As CEO of Starbucks after Chipotle’s successful run, Niccol admitted the issue and outlined steps to address it. The company is exploring a mix of technological solutions, operational adjustments, and store layout changes to manage order flow more effectively.
One key initiative includes refining Starbucks’ AI-powered demand forecasting to better anticipate peak periods and allocate resources accordingly. Additionally, the chain is considering separate pickup stations exclusively for mobile orders, a move that could help decongest crowded café spaces.
Another challenge lies in staffing. Starbucks is busy re-designing the workflow so that a larger volume of orders can be served by the baristas without losing speed and quality. The suggestions from the employees are that a change of store layout, an increase in the number of staff at peak hours, and proper assembly process design will always bring comfort to the employees. Some locations have already started testing new approaches, such as dedicated baristas for mobile-only orders and improved digital tracking to give customers a more accurate wait time.
Industry observers believe that Starbucks will be a model for other quick-service brands that are trying to navigate the intricacies of digital transformation. Many restaurant chains have been challenged to balance the rapid adoption of mobile ordering with the in-store experience, as increased digital demand often leads to operational friction. If Starbucks can get this right and scale it, it could set a new benchmark for managing high-volume digital transactions.
For now, Starbucks is sticking to improving its mobile order system while ensuring both digital and walk-in customers receive the level of service they expect. Customers and employees will be watching as the company hones its strategy under Niccol’s leadership for how it shapes the future of Starbucks’ digital experience.
