Starbucks Plans Tech Changes Customers Will Love

So many people you know are quick to tell you that they can’t function without their morning coffee.

And thanks to that state of mind, Starbucks  (SBUX)  raked in $29.06 billion of revenue in 2021, and the business just keeps on growing. Founded in the early ’70s in Seattle, the brand took off on a meteoric growth spurt in the ’90s and went on to become the world’s biggest coffee chain.

While the quality of Starbucks coffee is one thing java snobs will argue about, it’s hard to poke holes in the company’s unflappable vision and ability to change with the times. 

And with even more growth on the horizon —  2,000 new U.S. stores and 4,500 in China are planned, according to CFO Rachel Ruggeri — the company is considering what it needs to change to keep that growth process a smooth one.

To accomplish that, Starbucks is turning to a technology-based solution that could mean that soon you’ll be spending a lot less time getting your coffee in the drive-through.

Starbucks Changes How It Makes Coffee

Currently, when you order a Grande Mocha Frappuccino, the barista who makes it has to go through a 16-step process to prepare your beverage. 

It’s to their credit that they’ve managed to streamline that many steps down to 87 seconds, less than a minute and a half.

And now, thanks to a new proprietary system that Starbucks is introducing called Siren, that same drink can now be ready to serve in less than half that time: 36 seconds. 

The system features faster blenders, a milk-dispensing system and a custom ice dispenser. 

But perhaps cooler is that it reduces the amount of time baristas spend lifting heavy products and bending over to reach what they need. That’ll enable those with disabilities to be able to do their jobs better.

The Siren system is not just for coffee, either. Starbucks currently warms food by hand when a customer orders it, but the Siren will change that process, batch-cooking food items and placing them on a heated rack next to the drive-thru window. This aims to reduce 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 wide variety of coffees on demand in less than 30 seconds, and it no longer uses the paper filters that Starbucks employees currently have to change every 30 minutes to align with the company’s quality standards. It will roll out to Starbucks U.S. locations in 2023.

Both these developments are part of what Starbucks calls the Starbucks Reinvention Plan, which was announced by interim Chief Executive Howard Schultz in mid-July 2022. 

It also includes a host of digital experience upgrades, including the addition of mobile order pickup lanes, payment options that won’t require opening the Starbucks app, and a personalized drive-through experience that will make recommendations based on what you’ve ordered in the past.

Starbucks said in its investor day presentation on Sept. 13 that it would invest $2.5 billion to $3 billion over the next three years to update its stores with the new technology.

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