Like virtually every chain restaurant and fast food joint, Starbucks has seen declining sales over the last few years, thanks primarily to the pandemic and resulting inflation.
Back in 2019, Starbucks leaned into mobile ordering by opening its first store that didn't have baristas in green aprons taking orders and writing names on a cup. It was the first in a string of stores that served solely as a pick-up hub for orders placed through the mobile app. This format understandably picked up steam when the pandemic hit a year later.
Now, the famed coffee company is reversing course, as it aims to remodel its stores to feel less like caffeine way stations and more like community third spaces. They're adding warm decor and comfortable seating, trying to restore their stores' human touch. In doing so, they're kissing their mobile pick-up only concepts goodbye.
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Starbucks' CEO Brian Niccol announced that the company would close its mobile-only pick-up hubs during its July 29 earnings call. "We found this format to be overly transactional and lacking the warmth and human connection that defines our brand," he explained. This aligns with Starbucks' ongoing strategy of trying to make its stores more welcoming.
Starbucks not completely killing the concept, though—instead, it's evolving it, launching two new store concepts Niccol called "the coffeehouse of the future." These concepts will focus on mobile order and drive-thru, but will still have the option to go in and sit down. "We believe this new prototype will deliver an exceptional customer experience," Niccol said.
Niccol also said that Starbucks will soon launch Protein Cold Foam for its iced coffees. The topping will contain no added sugar and 15 grams of protein.
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