Starbucks doubles down on hospitality with 'Green Apron Service' strategy

Core Insights - Starbucks is focusing on enhancing guest experience and hospitality to improve sales in a competitive market [1][4] - The company has initiated the "Green Apron Service" program to foster friendly interactions and make visits habitual for customers [2][3] - Digital orders now account for over 30% of sales, prompting changes in staffing and technology to improve service efficiency [3][7] Company Strategy - The "Green Apron Service" is the largest investment in hospitality and store employees in the company's history, although no specific dollar amount was disclosed [7] - The initiative includes Smart Queue technology to optimize staffing and scheduling, aiming for consistent service quality across all ordering channels [7][8] - Early pilot results from 1,500 stores showed improvements in transactions, sales, and customer service times, with 80% of in-cafe orders meeting the four-minute service goal [9] Leadership and Performance - CEO Brian Niccol is leading the turnaround efforts, with a focus on creating a more welcoming atmosphere in cafes [5][6] - COO Mike Grams, who has extensive experience from Taco Bell, is overseeing the implementation of these strategies [6] - Starbucks shares have increased approximately 2.7% this year, lagging behind the S&P 500's 8.6% gains, indicating ongoing challenges in performance improvement [4]