Protein Push - Business Outrank

The company Starbucks faces six straight quarters of sales decline while undergoing a major business transformation. The company relies on high-protein cold foam drinks and dark roast beverages and quick service to bring back customer enthusiasm. The ‘Green Apron Service’ represents Starbucks' most significant initiative by offering a customer-centric model which combines speed with personalized service and enhanced hospitality. The new service model will expand to all U.S. locations starting in mid-August after its successful testing at 1,500 stores. Through this new approach Starbucks CEO Brian Niccol plans to transform the brand identity while software upgrades have achieved a 80% reduction in in-store order wait times below four minutes. The company expands its menu selection by adding baked goods and coconut water-based drinks and energy beverages and gluten-free high-protein food options. The company generated $9.5 billion in revenue during the fiscal third quarter but same-store U.S. sales decreased by 2% and transactions dropped by 4% which resulted in a 47% decline in net income to $558 million. The Chinese market shows positive trends but the U.S. operations of Starbucks continue to face market challenges. The company launched this critical change to regain customer loyalty and transform the coffee experience.

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