Coalition of Franchisee Associations

May 30, 2024

Years of Silly Policies are Catching up With Starbucks

Starbucks customers outraged by 40-minute waits - Bloomberg


Anonymous said...

In the last quarter, some 8% of Starbucks customers waited between 15 and 30 minutes for their order. By comparison, virtually no one waited that long for Starbucks drinks before the pandemic."

That is completely not true. Starbucks has ALWAYS been much slower than any other QSR.

They did address it by building more stores a that spread out demand so the lines got shorter. hat worked, until it didn't. You may remember Starbucks closing about 1000 stores in the 200s when overbuilding stopped working.

Now we are seeing them make the same mistake, with the added "bonus" of a unionized workforce that wants to only "work to rule," if that.

Anonymous said...

McD is making the same overbuilding mistake. The promised new expansion stores will cannibalize existing stores , reduce store values and owner equity.

Richard Adams said...

Mature public companies have a terrible problem: They have to continually spoil their shareholders with "growth." If the company is just selling a product through various channels, that might be an easy promise to keep. But if that growth depends on location-based sales, it eventually runs into a problem.

McDonald's hit that wall in the mid-1990s.

But along comes a new generation of corporate pukes, investors, and analysts who don't know about hitting that wall or don't even know there is a wall.
So they start making the same mistakes over and over again.

This "growth" frustration caused McDonald's management to go on their 1990s shopping spreee buying Donatos, Boston Market, etc.

And "growth" is causing the current crop of pajama boys to make impossible promises to shareholders. Guess who will end up paying for their mistakes.