Starbucks' Comeback Plan: Algorithms, Digital Menus and Ceramic Plates

Core Insights - Starbucks is implementing a "Back to Starbucks" campaign aimed at reversing sales declines and doubling its U.S. footprint, with net sales down 0.3% and same-store sales down 4% year-over-year in the fiscal first quarter [2][6] - The company is focusing on operational improvements, including a mobile order-pacing algorithm to enhance service speed and digital menu boards to streamline offerings [3][4] Group 1: Strategy and Operations - The new mobile order-pacing algorithm aims to serve in-store customers within four minutes, addressing current inefficiencies in order processing [3][4] - Starbucks plans to reduce its menu by about 30% by the end of September, allowing for more effective merchandising of food and drink options throughout the day [4][6] - The company is also reviewing store aesthetics, introducing new seating options, and reinstating features like ceramic mugs and condiment bars [5][6] Group 2: Expansion Plans - Starbucks intends to open small, mid-size, and large format stores as part of its expansion strategy, with approximately 17,050 stores in the U.S. as of late December [5][6] - The "Back to Starbucks" campaign is designed to restore brand confidence and support sustainable long-term growth [2][3]