The $100 Million Frappuccino: Is Starbucks Creating Negative Friction?

Brian Niccol, who became Starbucks’s CEO, was lured to the coffee conglomerate from Chipotle Mexican Grill with a $100 million pay package to get their java jumping again. If you’re a Starbucks customer like I have been since 1988 (starting in Seattle), what real improvements have you noticed since Niccol’s arrival?

Starbucks used to be a daily purchase for me. It was a highlight in my day. Not anymore. The value and experience is no longer there.

Why?

I can get an Americano of at least the same quality, at a better price and experience, at dozens of other places.

Elsewhere, the setting and coffee experience is often more relaxing and pleasing.

I get the feeling that Starbucks wants me to spend money on its highest margin drinks, then out of the way ASAP.

I wonder if this highly paid management team has made things even more complicated at the interface between the barista and customer?

Here is an example: My understanding is that Starbuck’s Strawberry Matcha Strato Frappuccino was one of the hottest drinks of summer. This concoction requires six ingredients and two blenders. Under new policies, baristas are also required to greet customers and make eye contact when handing over drinks. They must also write a genuine message on each cup.

All within four minutes. Really? (Why does product/marketing create this kind of menu item)?

When I first started going to Starbucks in the late 80’s it was a WOW experience, partly because of the novelty, but I can assure you it was also a lot less complicated. It was the “home away from home” that Founder Howard Schultz aspired to create.

Now, if I get behind a car full of people in the drive-thru, it could be a 20 minute wait before I get my simple order. The same can be said if someone’s ahead with a large office order or there’s a run of mobile sales. And who took away the comfy chairs, etc? (Of course, I get the problems related to people camping out all day).

If I want to linger at Starbucks, it should be my choice rather than wait time for my coffee. And while I appreciate a friendly smile, please don’t ask your wonderful employee to scribble a happy face on my cup. Focus on completing my order and make me want to return because I know what I’m getting every time.

I’m assuming Starbucks is using AI and sophisticated data science to determine customer spend and profit. Just be clear to your team and customers what your market strategy and objectives are. Put your team in a position to win every transaction and relationship. Six ingredients, two blenders, along with a meaningful customer connection seems like it includes a lot of negative friction. Rather than trying to recruit baristas to be heroes, why not reduce the negative friction in their daily work so that they don’t have to fulfill crazy orders? They will be happier, and so will your customers.

We see this repeatedly. If you want to have a great culture, design the work so that it’s easy to execute and give people the tools to be exceptional everyday. The perks, etc. are way less helpful and are like aloe for a sunburn that shouldn’t have happened to begin with.

And if Niccol is reading this, I think the chair of the Board’s Human Resource Committee, in order for you to receive your long term incentive bonus, should ask you to make each member a Strawberry Matcha Strato Frappuccino in less than four minutes… Don’t forget the “happy face.”

Think Big, Start Small, Act Now,

- Lorne

Garrett’s View: Ah, poor Starbucks. I understand a few of these conundrums. 1. Who has the best customer service game in fast food? Chick-Fil-A. Their “my pleasure” politeness is genuine, appreciated, and most notably - effortless. I’ll bet anything Starbucks goes “we can do one better… Learn from their eye contact and write something extra on the cup.” But obviously that hasn’t landed in the same way. Maybe because when people want their first coffee they’re not on a lunch break, they’re in a hurry, and say it with me — grumpy. 2. Who’s the Strawberry Matcha Strato Frap for? Teenagers! You know, the entire untapped market that never touched coffee until the drinks became Tik Tok and Instagram-worthy attractive. And oh, it’s 340 calories of sugar. They’re not ordering a coffee, they’re ordering a milk shake. We’ll see what happens with Starbucks, but you’re right, they certainly aren’t a destination for a quick, quality Americano, and they’re caught in the hellscape of trying to go viral but they’re not cool enough. I’m sure they wish it was 1990 again too.

- Garrett

AI Response: While Niccol's tenure has seen Starbucks prioritize operational speed and complex, high-margin beverages, this strategy may be contributing to the very friction you describe; in fact, a 2023 company survey revealed that over half of baristas felt rushed during peak hours, and the average store's customer connection score—a metric Starbucks heavily emphasizes—has fallen significantly as wait times and order complexity have increased, suggesting the push for both speed and personalized connection is creating an unsustainable tension that risks alienating both employees and long-time customers who remember a simpler, more consistent coffee experience.

The $100 Million Frappuccino: Is Starbucks Creating Negative Friction?

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