Full Discloser: I am a Starbucks “fan,” an overall coffee junkie and most importantly a loyal customer.
Being in the business, in which I mean an executive search firm for the supply chain sector, internally or between our offices, free time is often spent talking about supply chain strategies of major corporations. More often than not, these debates or complaints about issues are usually food based, as it seems food has become more talked about than politics these days.
For me personally to be able to measure anything retail QSR I need to visit them often enough to see trend, be it micro trends or macro trends. I would say I visit a Starbucks store at least 6 out of 7 days. For business days I often visit twice, and that is usually different locations with one being a drive-thru window and another as a walk-in.
With that being said I go often enough to see the trends. In fact, if Starbucks is using big data they can likely figure out exactly who I am, as I am a one trick pony: Venti Mocha or Venti Mocha with a Ham and Cheese Square. Now you know what a Café Mocha is, but if you haven’t tried the Ham and Cheese Square you have done yourself harm, great harm. Go try one ASAP.
But wait, your chances of getting that ham and cheese square may be slim! Certain locations we frequent only had them in stock about 50% of the time over the last few months. Others in our office have noted the same thing. So how can a corporation like Starbucks let this happen? You create a product that brings me back to your store for a second time that day but you cannot make the sale conversion because of the lack of inventory. We expect that from a local coffee shop start-up but not from Starbucks.
Wait again! Multiple times they haven’t had coffee sleeves or drink stoppers. Often I will grab 4 or 8 drinks to bring into the office and doing so with Detroit and Chicago roads without stoppers only makes a mess. One location was kind enough to offer me straws I can bend over and use as stoppers if I wanted to try it. Thanks, I guess?
Those are just some examples, but for the last 12 months we have consistently seen a lack of availability in food products, often extending for weeks, on top of some of the basic necessities to operate a coffee shop like sleeves and stoppers.
Often we ask our customers, “What type of career background would the ideal candidate have?” They say anyone who has experience from a world-class supply chain company such as Amazon, Starbucks, Proctor & Gamble and Apple.
Starbucks has everything going for them from great products to a loyal customer base, but has growth and expansion into foods caused their supply chain stress?
Well, I am off to get mocha and a ham and cheese square, or so I hope…