A lot of people you know are quick to tell you that they can’t function without their morning coffee.
Thanks to that state of mind, Starbucks (SBUX) It generated $29.06 billion in revenue in 2021, and the business continues to grow. Founded in the early 1970s in Seattle, the brand took off on a rapid growth spurt in the 1990s and has gone on to become the largest coffee chain in the world.
While the quality of Starbucks coffee is one of the things java snobs will argue, it’s hard to make holes in the company’s consistent vision and ability to change with the times.
And with more growth on the horizon — 2,000 new US stores are planned and 4,500 in China, according to CFO Rachel Ruggeri – the company is considering what it needs to change to keep that growth process smooth.
To make that happen, Starbucks is turning to a technology-based solution that could mean you’ll soon spend less time getting your coffee while you’re driving.
Starbucks is changing the way coffee is made
Currently, when you order a Grande Mocha Frappuccino, the coffee maker that makes it has to go through a 16-step process to prepare your brew.
To their credit, they were able to simplify those many steps down to 87 seconds, just under a minute and a half.
And now, thanks to Starbucks’ new proprietary system called Siren, that same drink can now be ready to serve in less than half that time: 36 seconds.
The system features faster mixers, a milk dispensing system, and a dedicated ice dispenser.
But perhaps even cooler is that it reduces the time coffee workers spend lifting heavy produce and bending over to get to what they need. This will enable people with disabilities to do their jobs better.
The Siren system isn’t just for coffee either. Starbucks currently heats food manually when a customer orders it, but the siren will alter this process, cooking the food in one go and placing it on a hot rack next to the drive-through. This aims to reduce the time the barista spends preparing the order, as well as the time the customer waits.
Another innovation
Another development is the Clover Vertica, a coffee machine created with the help of Clover, which Starbucks acquired in 2008.
It grinds beans and dispenses a variety of coffee on demand in less than 30 seconds, no longer using paper filters that Starbucks employees have to change every 30 minutes to keep up with the company’s quality standards. It will be launched at Starbucks locations in the United States in 2023.
These two developments are part of what Starbucks calls Starbucks’ Reinnovation Plan, which interim CEO Howard Schultz announced in mid-July 2022.
It also includes a suite of digital experience upgrades, including the addition of mobile order pickup lanes, payment options that don’t require opening the Starbucks app, and a customized driving experience that will make recommendations based on what you’ve ordered in the past.
Starbucks said in its Investor Day presentation on September 13 that it will invest $2.5 billion to $3 billion over the next three years to modernize its stores with new technology.
