Technology Starbucks and Customer Relevance

When Kevin Johnson Starbucks CEO arrived from Microsoft the world was on notice that Starbucks was about to integrate technology and coffee at the intersection of the consumer in a big way.  Well, according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodsevice Solutions® they are doing just that.

In one giant step Starbucks, is fast evolving the digital experience for customers in China by launching voice ordering and delivery capabilities within Alibaba’s smart speaker, Tmall Genie.  With that giant partnership step and technology leap customers can now order their favorite Starbucks beverages and food simply by using their voice for delivery within 30 minutes. Leveraging Alibaba’s on-demand food delivery platform, Ele.me, the voice ordering capabilities for Starbucks further extend the customer experience within Starbucks digital ecosystem. Partnerships matter in 2019 according to Johnson and technology drives customer relevance everywhere.

As regular readers of this blog know, the launch of the new service marks the one-year anniversary of Starbucks and Alibaba’s strategic partnership which advances the New Retail infrastructure and digital power in China — one of the fastest-growing markets in the world for coffee consumption.

Why is this so important because it builds on several significant collaborations between the two companies that enable a seamless Starbucks Experience for Chinese customers, such as establishing back-of-house kitchens, Star Kitchens, within Alibaba’s Freshippo supermarkets in China.

Miffy Chen, general manager at Alibaba A.I. Labs  stated “We are thrilled to provide our cutting-edge Artificial Intelligence technology through Tmall Genie to serve Starbucks digitally-savvy customers in China,” says which leads the development of Tmall Genie.”… “Earlier this year, we launched food order and delivery service through Ele.me in response to our users’ needs for on-demand local services. We’re excited to introduce an even more diverse and enriched experience on our platform through Starbucks voice ordering and provide a direct benefit to Chinese consumers within their daily routine.”

Molly Liu, vice president and general manager, Digital Ventures, Starbucks China  stated “The Starbucks feature through Alibaba’s Tmall Genie ushers in a new era of digital customer engagement for Starbucks, leveraging ground-breaking digital technology to create an unprecedented experience that elevates our connection with customers to new heights,”  “We are focused on ensuring that Starbucks voice ordering is truly personal, and we look forward to offering our customers more convenient moments and new opportunities to engage with Starbucks on a single integrated platform as they move throughout the day.”

Let’s cut to the chase if you are a regular reader of this blog you should now know that brands must integrate technology to maintain and grow customer relevance.  How are you planning to do that?

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, www.Linkedin.com/in/grocerant/ or www.twitter.com/grocerant/

Kroger’s Simple Truth branded products Made for China

Sometimes when you have 19+ banners, and corporate brand managers outnumber the number of banners you have, and your sales lag industry leaders you have no other choice but to seek-out partnerships for new points of distribution praying for some luck to drive sales.  Does anyone think that’s just what Kroger is doing when it formed a partnership with Alibaba.com’s Tmall Global site, which features foreign products?

This new partnership enables Kroger to get a foothold in global sales for the first time in its 135-year history and pretend it is keeping pace with rivals such as Walmart. The fact is Walmart sell Walmart branded product in other countries edifying its brand value while Kroger is selling it Simple Truth private label products. 

Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® wondering out loud asked is this a new avenue of distribution to drive top line sale and bottom line profits or is it an avenue of distribution to unload over produced products?

Kroger said the company would launch the offer with a mix of dietary supplements and its private-label Simple Truth products that it sells online in the U.S. through Vitacost.com and through its online stores for pickup or delivery, where available.

The deal is the latest in a string of announcements – many of them partnerships – supporting Kroger’s $900 million Restock initiative announced last year. Kroger said the move will support the strategies objectives to “redefine the grocery experience” through its own brands, and to open new revenue streams through strategic partnerships.

Simple Truth has quickly become the second-largest brand sold in Kroger stores since launching five years ago. In 2018, Simple Truth reached more than $2 billion in annual sales, making it the largest natural and organic brand in America. Does your company have more brand managers than banners?  Are you a retailer or a manufacture?  Do you understand brand integration, messaging, or how to edify your brand value?

Foodservice Solutions® specializes in outsourced food marketing and business development ideations. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant

Are you Exploring Cashier-less Foodservice

Amazon’s Amazon Go, Alibaba’s BingoBox are disruptors that cannot be discounted, dismissed, or detoured according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Cashier-less retail is driving consumer trial, customer migration, and foodservice sector uncertainty. 

Many legacy Grocery stores, Chain Restaurants, and Convenience Stores tout operational efficiencies however most of those efficiencies are based on industry standards established in the 1960’s and have little if any relevance today. 

If you are a foodservice company today and your business model looks more like the 1990’s, 2005, or 2015 your best days just may be behind you according to Johnson. Here is an example The foodservice retail sector is evolving faster today than ever before driven by consumers that want their orders faster than ever before.  Wendy’s, for example, planned to roll out self-ordering kiosks at about 1,000 of its retail locations by the end of 2017 in an attempt to both lure younger customers and to battle long lines at peak dining hours. That solution looks more like a yesterday than tomorrow’s retail template for success according to Johnson.

Self-service kiosk are simply a inside the box solutions while customers are looking from outside the box for incremental food options according to Johnson. What food companies sell, where they sell it and to whom they sell it too have evolved.  Selling the same thing, in the same way for most food retailers is not a long term prescription for success.  Business models are evolving. Does your business model look more like yesterday than today or tomorrow?

Cashier-less retailers today offer a wider variety of fresh prepared food and beverages enabling consumers to customize, personalize ad family dinner, individual lunch or breakfast for less and faster than most  fast food restaurants offer today.  Don’t let your foodservice brand get trapped looking back and playing catch-up while other are braking away from the pack.

Are you trapped doing what you have always done and doing it the same way?  Where is your new electricity coming from?  Interested in learning how www.FoodserviceSolutions.us can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information.