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Case Study

StarBucks

Dec 9, 2023

BACKROUND & CHALLENGE

The licensee for Southern Africa had grown to 24 stores, with the planned growth objective of doubling the store numbers in 9 months. The shareholders, based in the US, had lost trust in their technology team and technology costs were escalating beyond their control. Further to this, global brand technology requirements were becoming increasingly more technical and costly to implement locally. The result was an increase in technology failures across rewards, customer facing apps and inventory control areas of the business. An additional burden for the client was preparing for an impending launch of a new global POS within Starbucks.

WHAT WE DID

The US shareholder engaged with the PPT Group and a decision was taken to outsource their entire technology function to PPT and completely dissolve their internal IT team.

  • We immediately took control of the entire technology environment and proactively initiated negotiations directly with the global Starbucks technology team. Our team successfully stabilised, fixed and relaunched their customer facing apps and Starbucks rewards.
  • After stabilising their technology environment, we launched a new Starbucks approved Cloud POS. This was rolled out across the business for both existing stores and new stores.

RESULTS TO DATE

Adopting our bespoke approach to the project, we were able to deliver exceptional results for the client:

  • Reduced annual technology costs by $1 million through renegotiating with technology suppliers both in Europe and locally. 
  • Successfully managed 30 new store openings in 9 months, achieving store footprint growth objectives.
  • Contributed to the business being EBITDA positive through savings and efficiencies. 

The outcome of these positive results is that the shareholder has extended our contract to 6 years aligned to growing the business to 250+ stores.

PPT has been further contracted to provide a paperless store environment and a move to a fully integrated remote management framework. This requires the integration of financial, operational and customer inputs into a single view of the business with corrective tasks and actions managed through a workflow management system linked to people KPI’s.