STARBUCKS has admitted a major fault to their app and revealed the cafe giant is making updates to their platform in a bid to increasing pricing transparency for consumers.
In an interview with Fox Business, the new CEO Brian Niccol said he believed the company’s app made it difficult for customers to see how changes to their drink order affected the price.
Starbucks CEO Brian Niccol took over the top job in August[/caption]
Starbucks is tweaking its app to boost cost transparency for customers[/caption]
“I don’t think right now it’s very transparent for people to understand when they’re modifying their drink, how that modification translates into their drink price,” Niccol told Fox Business.
Niccol said the company was tweaking the app to show customers in real time how their drink order price may increase when they add extras like a pump of flavour.
Currently the app only shows the final price when they checkout.
Niccol said it would take “a little bit of time to do the rewiring.”
He said the change would mean customers weren’t caught off guard when paying.
I think what’s happening to folks is they’re getting a little surprised when they do three or four customizations, and it’s not clear to them how those customizations are priced
Brian Niccol
He also said the change would “fix the logic on what those customizations are being charged.”
The app tweak comes after Starbucks announced it would also allow customers to complete
Niccol took over as CEO in August with a mandate to bring back customers and create a better work environment.
He was previously the CEO of Chipotle and Taco Bell.
Starbucks fans had been complaining about rising prices despite the chain’s efforts to offer customer discounts.
Starbucks has faced dropping sales for three consecutive quarters, per CNBC.
In the chain’s most recent quarter, reported on October 30, foot traffic to its US locations decreased by 10%.
According to Niccol, the decline in customers is because some believe the chain has become too distant from its roots.
MAJOR CHANGES
Niccol has also unveiled other changes planned for US cafes, including the return of ceramic mugs, condiment bars, and cozy furniture.
The CEO hopes to restore the coffee chain as a “third place,” referring to the idea of a space for people to work and socialize outside of their homes or offices.
Starbucks has marketed itself as a space to hang out for decades but has lost that appeal over the years.
In addition to implementing personal touches, the CEO intends to improve store staffing and cut service time for each order to below four minutes.
CHEAPER DRINKS
Starbucks will also bring back its condiment bars, allowing customers to add their own milk, sugar, and other extras.
Another change at the coffee giant includes the removal of extra fees for alternative milks such as soy, oat, almond, and coconut milk.
Thanks to this change, Starbucks estimates that customers will pay around 10% less for their plant-based drinks.
