[DongleDongle] "3.88 billion latte menu items"…The inside story of Starbucks waiting lines

One-Third of Customers Wait Over 5 Minutes
170,000 Options Added with Custom Menu
Labor-Management Conflicts Grow Due to Complex Production
Manufacturing Time Reduced by Introducing Automation Machines

Recently, the National Tax Service announced statistics showing that the number of coffee shops in Korea reached a staggering 90,463 last year. Korea has quietly become a coffee republic where cafes are easier to find than restaurants.

Amid the overwhelming cafe craze, Starbucks consistently remains a leader in brand reputation. Its spacious stores and customizable menu options have created countless Starbucks enthusiasts.

However, some customers express dissatisfaction with Starbucks’ long wait times. They say it takes longer to receive their coffee compared to other franchise cafes. Starbucks is aware of this issue and has begun working on solutions. Today, we will explore why Starbucks’ order wait times are particularly long and uncover the hidden reasons behind it.

[Image source=Yonhap News]

Waiting Over 5 Minutes for Drinks... Due to Complex Preparation Process

According to statistics from food industry consulting firm Technomic, more than one-third of Starbucks customers wait at least 5 minutes after ordering before receiving their drinks.

A Starbucks employee's custom menu request posted on social media. [Image source=Screenshot from SNS]

The custom order system is the main culprit behind the long wait times. Starbucks offers a custom order service where consumers can add or remove syrups, milk, java chips, and more according to their preferences. In theory, if all the options Starbucks provides are combined, it is said that just for lattes alone, 388 billion different menu variations can be created.

The service cannot be discontinued simply because preparation takes a long time. Custom menus are the top contributors to Starbucks’ sales. Looking at Starbucks’ Q4 fiscal year 2022 (July 4, 2022 ? October 2, 2022) sales, custom-made drinks accounted for 60% of total beverage sales. Some custom menu items have also gained popularity online through social media, helping to increase store customer traffic.

Custom Service Sparks Union Conflicts... Cited as Obstacle to Customer Acquisition

In fact, Starbucks has struggled with this custom service for a long time. The complex menu preparation increased baristas’ workload, fueling conflicts between management and employees. At a store in Los Angeles, California, a Starbucks employee was fired after expressing dissatisfaction with a customer’s custom drink order that included 13 added options. However, Starbucks took a step back when a union was formed for the first time since its founding in 2021.

Howard Schultz, former CEO of Starbucks [Photo by AFP Yonhap News]

At that time, Howard Schultz, then CEO of Starbucks, announced a major investment plan called the “Reinvention Plan” to reduce baristas’ workload. Examining this plan reveals that its core is to acquire automation systems to handle custom menus.

Starbucks plans to invest up to $3 billion annually through fiscal year 2025 to introduce automation machines. Using these machines, baristas can quickly prepare drinks without having to remember customers’ specific preferences. The machines adjust syrup amounts and perform self-cleaning to shorten preparation times. Starbucks filed a patent related to this machine in February, but it remains unclear when it will be practically implemented.

Starbucks also plans to spend $450 million to upgrade coffee machines and ovens in North American stores. For example, the preparation time for a mocha frappuccino will be reduced from 87 seconds to 35 seconds by simplifying the beverage-making process. They will also introduce a “Siren Bar” that allows baristas to extract milk and add ice to drinks with the push of a button. By 2026, 40% of U.S. stores are expected to have this system.

Former CEO Schultz explained that even an increase of five daily customers per store could boost annual sales by over $900 million, emphasizing the need to speed up order processing. While custom services have contributed to sales growth, Starbucks recognizes the downside of not being able to attract more customers due to longer wait times. Developing a service to accurately measure customers’ drink wait times using store data appears to be a measure to address this concern.

Whether this Reinvention Plan will serve as a catalyst to improve speed while maintaining the quality of custom services remains uncertain. The key issue is whether preparation times can be shortened without compromising drink quality as before. Can Starbucks catch both the speed and quality rabbits? The choice is in the hands of consumers?you.