Strengths is becoming a problem

March 21, 2017
Posted in Journal
March 21, 2017 O2O Pro Management

We have shared previously of how mobile order and pay is the next Food and Beverage retail’s focus as it simply speed up the whole transaction time. However, it isn’t a perfect world yet as we see from the Starbuck’s experience. The company had a tough Q1 2017 as their retail business in the USA slide down of 2% compared to last quarter which was an increase of 7%.

Starbuck’s mobile order and pay system is created with an aim to lower congestion in store and allowing more employee time into production and ideally create an enhanced customer experience. The service was tested and rolled out nationwide in the United States where the citizens are embracing the new technology. The ordering process goes with, choose order>choose nearest location>choose your product>confirm order>complete.

The fact now is that Starbuck is facing their bottleneck of its mobile ordering users and creating frustrated customers over the past months. Some even canceled their orders due to the long wait in the queue. Business Insider made an inspection to prove what social media is sharing is true by walking into the busiest Starbucks in Manhattan everyday for a week and has proven the statements.

Source : Business Insider

The use of mobile order and pay continue to accelerate and that has created the congestion at the handoff. At roughly 8am, you can already see traffic jam at the Starbucks store before you even walk in but it’s not the ordering queue but the crowd at the pickup counter.  Business Insider shared that the average waiting time takes roughly 10minutes waiting time which is twice of what was promised by Starbuck of 3-5 minutes. The mobile ordering process is now the same as walking in without pre-order. Having to say that there are reasons people get frustrated and the coffee giant needs to make improvement, FAST.

Now, that’s a lesson learned and we should pick it up. Leading a sector is not a bad thing as there are risks when it comes to innovations but its coming back to speed as in how can a company can solve the challenge and offer a quick service recovery to the issues.

Source: Business Insider