Starbucks CEO Brian Niccol reveals how Luckin Coffee is influencing his playbook - and the tactic he won't use
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Starbucks CEO Brian Niccol reveals how Luckin Coffee is influencing his playbook - and the tactic he won't use
"All ordering happens through an app, making the process impersonal and streamlined. When asked what he admires about the chain, Niccol pointed to their flavor combinations. "The one thing that they probably have done a nice job of is just an unbelievable pace of product innovation," he said. "It sets the tone for, 'Hey, we cannot be complacent on flavors and drink combinations.'""
"Yet Luckin's entirely digital business model contrasts with Niccol's focus on the in-person experience. In July, Starbucks announced that it's phasing out its mobile order-only stores, and Niccol talked about enhancing stores' physical comfort at the Fast Company conference. "They've done an interesting job on how they've turned the app into the only way you can interact with that business," Niccol said about Luckin. "It's a different approach. I don't think it's the right approach for us.""
Brian Niccol praised Luckin Coffee's fast pace of product innovation and unconventional flavors. Luckin operates with low prices and an app-only ordering model that makes interactions impersonal and streamlined. Niccol said Luckin's innovation pressures competitors to avoid complacency on flavors and drink combinations. Niccol contrasted Luckin's digital-first approach with Starbucks' emphasis on the in-person experience and said the app-only model is not right for Starbucks. Starbucks is phasing out some mobile-order-only stores and focusing on convenience, connection, and craft. Luckin opened first US stores, bringing direct rivalry to Starbucks' home market.
Read at Business Insider
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