Starbucks is implementing changes in its cafes across the country to address long wait times and bottlenecks, particularly in anticipation of increased orders through its mobile app. The "Siren Craft System" is being introduced to streamline processes and improve service times. More than 10% of Starbucks' 10,000 stores have already implemented the system, with plans for deployment across North America by the end of July. The company aims to address disappointing second-quarter results, including a 3% decline in U.S. same-store sales and a 7% drop in traffic. Incomplete mobile app orders and decreased visits from occasional customers have been reported, prompting the need for store improvements. Starbucks has also opened its app to non-rewards members, expecting increased traffic and orders. The company is working to be more efficient in meeting high demand in certain stores, especially with limited kitchen space. Additionally, Starbucks saw a 3% decline in U.S. revenues, driven by a 7% drop in comparable transactions, partly offset by a 4% increase in average ticket. The company is focusing on improving performance in the U.S. market by addressing challenges in meeting demand across dayparts, capturing unmet overnight and weekend demand, and launching new products. Furthermore, Starbucks is working on enhancing customer service and operational execution, as customer service has reportedly worsened since the start of the year. The company is also facing criticism over longer wait times and reduced staff efficiency in serving customers. These challenges are indicative of the company's struggle, as reflected in its decline in sales and guest traffic in the latest quarter. Overall, Starbucks is making significant operational and strategic changes to address these issues and improve its performance in the market.
