Latest news with #MikeGrams
The Independent
8 hours ago
- Business
- The Independent
Starbucks unveils its latest plans to lure back customers – a more comfy return to form
Starbucks has unveiled its latest plans to lure customers back inside its stores, choosing to lean into comfort after focusing on convenience. In recent years, the coffee chain has geared its stores toward the type of customer who wants to grab a drink and be on their way quickly. They've built more drive-thrus and introduced mobile ordering. But as more people seek to get back to their pre-pandemic modes of work and leisure — a space that's neither work nor home, where they can also socialize — Starbucks is focusing on making its stores warm and inviting again. In the next year, Starbucks will renovate 1,000 stores with comfy chairs, couches and power outlets, CNN reported, in an attempt to get back to its roots. Some might recall in the early 2000s when Starbucks had stuffed purple armchairs. They were taken out of stores in 2008. 'You will see something similar to it returning to our stores,' Meredith Sandland, Starbucks' chief store development officer, told CNN. 'Will it be purple? I don't know. I'll tease that one out.' CNN got a sneak peek of the first store to be remodeled. It's located in Bridgehampton, New York. The store features tables with long couches on one side and chairs on the other. There are also low, cushioned chairs off to the side, perfect for a coffee date. 'It's creating comfortable seating where people want to come in. It's not just the quick grab and go concept,' Mike Grams, Starbucks' chief operating officer, told CNN. Grams admitted: 'Maybe over past years, we lost our way a little bit on that.' Starbucks has already renovated four stores in the Hamptons, with plans to renovate more stores in New York City in the next few months, CNN reported. If you've been paying close attention, you might have noticed other changes around your local Starbucks, like baristas writing on your coffee cup with Sharpie markers. Starbucks has also brought back self-serve milk and sugar stations and is offering free refills for customers who take their coffee to stay rather than to go.
Yahoo
17 hours ago
- Business
- Yahoo
Inside Starbucks' ‘coffeehouse of the future': Its redesign to save the company
Over the last few years, Starbucks pulled out 30,000 comfortable seats, installed hard wooden stools, blocked electrical outlets and turned stores into takeout counters for customers picking up orders off its mobile app. The changes backfired and customers left for local coffee shops and other chains and brewed more coffee at home. Now Starbucks is trying to win back customers looking to sit down for a cup of coffee by renovating 1,000 stores — 10% of its company-owned US locations—with comfy chairs, couches, tables and power outlets in the next year. The company aims to make changes to all of its US stores within the next three years for an undisclosed price tag. 'It's creating comfortable seating where people want to come in. It's not just the quick grab and go concept,' Mike Grams, Starbucks' chief operating officer, said in an interview with CNN last week at one of the first remodeled stores in Bridgehampton, New York. 'Maybe over past years, we lost our way a little bit on that.' The company is beginning its remodel push in the Hamptons, the posh vacation retreat where Bon Jovi, Jennifer Lopez, Alec Baldwin and other celebrities own homes. Starbucks redesigned four stores in the Hamptons and plans to remodel New York City locations next quarter. Starbucks' 'coffeehouse of the future' is not revolutionary, but the Bridgehampton renovation made the store feel modern. The design was minimalist, with a mix of light and dark-brown wood tones, dark-green walls and soft lighting. Plants and bowls of coffee beans were placed around the store. The espresso bar was opened up, and the menu board went digital. At the Bridgehampton store, people were having conversations in low, cushioned armchairs, orange booth seats and high-top tables for two. Other customers were sitting in wood chairs on their laptops at small tables. The big question is whether these changes go far enough to reverse Starbucks' slide. Sales at stores open at least a year have declined for five consecutive quarters. The company is getting squeezed by independent coffee shops, growing chains like Blank Street Coffee and Blue Bottle Coffee and drive-thru companies such as Dutch Bros. Customers have also balked at Starbucks' prices. 'Is it an overwhelming change? No. But I think it makes a psychological difference,' said Joseph Pine, the co-founder of consultancy Strategic Horizons, who criticized Starbucks for 'commoditizing itself' through mobile orders in a Harvard Business Review article last year. 'It sends a signal to sit down and spend some time here,' he said. But the redesigned store still didn't solve the balance between mobile and in-person customers. Despite a riser and a dedicated pickup shelf for mobile orders, customers piled up near the counter, waiting for their pickups and hovering near customers sitting down with their coffee. Starbucks said it's soon implementing technology that more efficiently sequences orders and a new staffing model that will help alleviate congestion at the counters. The appeal to customers to sit down in stores again is part of CEO Brian Niccol's 'Back to Starbucks' strategy. Since arriving from Chipotle last year, Niccol, the Mr. Fix-It of the fast food industry known for leading turnarounds at Taco Bell and Chipotle, has brought back a Starbucks tradition of baristas doodling on cups in Sharpie pens; reinstated self-serve milk and sugar stations; cut 30% of the menu; and ended its open-bathroom policy. Starbucks is also offering free refills for customers who sit down in stores, served in ceramic mugs. ''Back to Starbucks' is bringing Starbucks back to the brand that we all grew up with,' said Grams, who was the president of Taco Bell and took over as Starbucks' COO in February. 'It's just making sure that you keep everything balanced and you create that sense of real comfort in our cafes.' The new leadership team is trying to position Starbucks' coffee shops as a 'third place' again. Starbucks' longtime leader Howard Schultz envisioned the company's stores as a location where people could relax that wasn't their workplace or their home, designing stores for people to spend hours in plush purple armchairs, socializing and connecting. The third place idea became part of Starbucks' corporate mythology. But Starbucks struggled to maintain this identity as it built drive-thru stores and catered to the rise of mobile orders, which now make up more than a third of Starbucks' sales. Starbucks tried to serve customers looking for both a local coffee shop vibe and those who prioritized speed at the same time. The company ended up alienating both, said RJ Hottovy, an analyst who covers the restaurant industry at data analytics firm 'People want more third place options out there,' Hottovy said. 'To go after that and bring that feeling back for Starbucks is important.' Starbucks is trying to return to its past, but stores won't look like they did 20 years ago. For example, Starbucks is not bringing back the iconic stuffed purple armchairs from the 1990s and 2000s. Starbucks said the fabric was easily worn and hard to keep clean. It retired the purple armchairs in 2008. 'You will see something similar to it returning to our stores,' said Meredith Sandland, a former Taco Bell executive who became Starbucks' chief coffeehouse development officer in February. 'Will it be purple? I don't know. I'll tease that one out.' Each redesign will look slightly different, she said, but they will all include new lighting, colors, better acoustics and other improvements across more than 10,000 company-owned US locations. Starbucks also has around 7,000 licensed stores in the United States. Starbucks also plans a variety of different seats in stores to encourage people to come in for different purposes – working solo on a laptop, having a meeting or reading a book, she said. The goal is to make Starbucks feel more like a boutique setting, not a McDonald's. 'I think of a 'third place' as a place that should be warm and welcoming (and) feel a little bit more like a hotel lobby than maybe a fast food restaurant,' she said. Sign in to access your portfolio
CNN
17 hours ago
- Business
- CNN
Inside Starbucks' ‘coffeehouse of the future': Its redesign to save the company
Over the last few years, Starbucks pulled out 30,000 comfortable seats, installed hard wooden stools, blocked electrical outlets and turned stores into takeout counters for customers picking up orders off its mobile app. The changes backfired and customers left for local coffee shops and other chains and brewed more coffee at home. Now Starbucks is trying to win back customers looking to sit down for a cup of coffee by renovating 1,000 stores — 10% of its company-owned US locations—with comfy chairs, couches, tables and power outlets in the next year. The company aims to make changes to all of its US stores within the next three years for an undisclosed price tag. 'It's creating comfortable seating where people want to come in. It's not just the quick grab and go concept,' Mike Grams, Starbucks' chief operating officer, said in an interview with CNN last week at one of the first remodeled stores in Bridgehampton, New York. 'Maybe over past years, we lost our way a little bit on that.' The company is beginning its remodel push in the Hamptons, the posh vacation retreat where Bon Jovi, Jennifer Lopez, Alec Baldwin and other celebrities own homes. Starbucks redesigned four stores in the Hamptons and plans to remodel New York City locations next quarter. Starbucks' 'coffeehouse of the future' is not revolutionary, but the Bridgehampton renovation made the store feel modern. The design was minimalist, with a mix of light and dark-brown wood tones, dark-green walls and soft lighting. Plants and bowls of coffee beans were placed around the store. The espresso bar was opened up, and the menu board went digital. At the Bridgehampton store, people were having conversations in low, cushioned armchairs, orange booth seats and high-top tables for two. Other customers were sitting in wood chairs on their laptops at small tables. The big question is whether these changes go far enough to reverse Starbucks' slide. Sales at stores open at least a year have declined for five consecutive quarters. The company is getting squeezed by independent coffee shops, growing chains like Blank Street Coffee and Blue Bottle Coffee and drive-thru companies such as Dutch Bros. Customers have also balked at Starbucks' prices. 'Is it an overwhelming change? No. But I think it makes a psychological difference,' said Joseph Pine, the co-founder of consultancy Strategic Horizons, who criticized Starbucks for 'commoditizing itself' through mobile orders in a Harvard Business Review article last year. 'It sends a signal to sit down and spend some time here,' he said. But the redesigned store still didn't solve the balance between mobile and in-person customers. Despite a riser and a dedicated pickup shelf for mobile orders, customers piled up near the counter, waiting for their pickups and hovering near customers sitting down with their coffee. Starbucks said it's soon implementing technology that more efficiently sequences orders and a new staffing model that will help alleviate congestion at the counters. The appeal to customers to sit down in stores again is part of CEO Brian Niccol's 'Back to Starbucks' strategy. Since arriving from Chipotle last year, Niccol, the Mr. Fix-It of the fast food industry known for leading turnarounds at Taco Bell and Chipotle, has brought back a Starbucks tradition of baristas doodling on cups in Sharpie pens; reinstated self-serve milk and sugar stations; cut 30% of the menu; and ended its open-bathroom policy. Starbucks is also offering free refills for customers who sit down in stores, served in ceramic mugs. ''Back to Starbucks' is bringing Starbucks back to the brand that we all grew up with,' said Grams, who was the president of Taco Bell and took over as Starbucks' COO in February. 'It's just making sure that you keep everything balanced and you create that sense of real comfort in our cafes.' The new leadership team is trying to position Starbucks' coffee shops as a 'third place' again. Starbucks' longtime leader Howard Schultz envisioned the company's stores as a location where people could relax that wasn't their workplace or their home, designing stores for people to spend hours in plush purple armchairs, socializing and connecting. The third place idea became part of Starbucks' corporate mythology. But Starbucks struggled to maintain this identity as it built drive-thru stores and catered to the rise of mobile orders, which now make up more than a third of Starbucks' sales. Starbucks tried to serve customers looking for both a local coffee shop vibe and those who prioritized speed at the same time. The company ended up alienating both, said RJ Hottovy, an analyst who covers the restaurant industry at data analytics firm 'People want more third place options out there,' Hottovy said. 'To go after that and bring that feeling back for Starbucks is important.' Starbucks is trying to return to its past, but stores won't look like they did 20 years ago. For example, Starbucks is not bringing back the iconic stuffed purple armchairs from the 1990s and 2000s. Starbucks said the fabric was easily worn and hard to keep clean. It retired the purple armchairs in 2008. 'You will see something similar to it returning to our stores,' said Meredith Sandland, a former Taco Bell executive who became Starbucks' chief coffeehouse development officer in February. 'Will it be purple? I don't know. I'll tease that one out.' Each redesign will look slightly different, she said, but they will all include new lighting, colors, better acoustics and other improvements across more than 10,000 company-owned US locations. Starbucks also has around 7,000 licensed stores in the United States. Starbucks also plans a variety of different seats in stores to encourage people to come in for different purposes – working solo on a laptop, having a meeting or reading a book, she said. The goal is to make Starbucks feel more like a boutique setting, not a McDonald's. 'I think of a 'third place' as a place that should be warm and welcoming (and) feel a little bit more like a hotel lobby than maybe a fast food restaurant,' she said.
CNN
18 hours ago
- Business
- CNN
Inside Starbucks' ‘coffeehouse of the future': Its redesign to save the company
Over the last few years, Starbucks pulled out 30,000 comfortable seats, installed hard wooden stools, blocked electrical outlets and turned stores into takeout counters for customers picking up orders off its mobile app. The changes backfired and customers left for local coffee shops and other chains and brewed more coffee at home. Now Starbucks is trying to win back customers looking to sit down for a cup of coffee by renovating 1,000 stores — 10% of its company-owned US locations—with comfy chairs, couches, tables and power outlets in the next year. The company aims to make changes to all of its US stores within the next three years for an undisclosed price tag. 'It's creating comfortable seating where people want to come in. It's not just the quick grab and go concept,' Mike Grams, Starbucks' chief operating officer, said in an interview with CNN last week at one of the first remodeled stores in Bridgehampton, New York. 'Maybe over past years, we lost our way a little bit on that.' The company is beginning its remodel push in the Hamptons, the posh vacation retreat where Bon Jovi, Jennifer Lopez, Alec Baldwin and other celebrities own homes. Starbucks redesigned four stores in the Hamptons and plans to remodel New York City locations next quarter. Starbucks' 'coffeehouse of the future' is not revolutionary, but the Bridgehampton renovation made the store feel modern. The design was minimalist, with a mix of light and dark-brown wood tones, dark-green walls and soft lighting. Plants and bowls of coffee beans were placed around the store. The espresso bar was opened up, and the menu board went digital. At the Bridgehampton store, people were having conversations in low, cushioned armchairs, orange booth seats and high-top tables for two. Other customers were sitting in wood chairs on their laptops at small tables. The big question is whether these changes go far enough to reverse Starbucks' slide. Sales at stores open at least a year have declined for five consecutive quarters. The company is getting squeezed by independent coffee shops, growing chains like Blank Street Coffee and Blue Bottle Coffee and drive-thru companies such as Dutch Bros. Customers have also balked at Starbucks' prices. 'Is it an overwhelming change? No. But I think it makes a psychological difference,' said Joseph Pine, the co-founder of consultancy Strategic Horizons, who criticized Starbucks for 'commoditizing itself' through mobile orders in a Harvard Business Review article last year. 'It sends a signal to sit down and spend some time here,' he said. But the redesigned store still didn't solve the balance between mobile and in-person customers. Despite a riser and a dedicated pickup shelf for mobile orders, customers piled up near the counter, waiting for their pickups and hovering near customers sitting down with their coffee. Starbucks said it's soon implementing technology that more efficiently sequences orders and a new staffing model that will help alleviate congestion at the counters. The appeal to customers to sit down in stores again is part of CEO Brian Niccol's 'Back to Starbucks' strategy. Since arriving from Chipotle last year, Niccol, the Mr. Fix-It of the fast food industry known for leading turnarounds at Taco Bell and Chipotle, has brought back a Starbucks tradition of baristas doodling on cups in Sharpie pens; reinstated self-serve milk and sugar stations; cut 30% of the menu; and ended its open-bathroom policy. Starbucks is also offering free refills for customers who sit down in stores, served in ceramic mugs. ''Back to Starbucks' is bringing Starbucks back to the brand that we all grew up with,' said Grams, who was the president of Taco Bell and took over as Starbucks' COO in February. 'It's just making sure that you keep everything balanced and you create that sense of real comfort in our cafes.' The new leadership team is trying to position Starbucks' coffee shops as a 'third place' again. Starbucks' longtime leader Howard Schultz envisioned the company's stores as a location where people could relax that wasn't their workplace or their home, designing stores for people to spend hours in plush purple armchairs, socializing and connecting. The third place idea became part of Starbucks' corporate mythology. But Starbucks struggled to maintain this identity as it built drive-thru stores and catered to the rise of mobile orders, which now make up more than a third of Starbucks' sales. Starbucks tried to serve customers looking for both a local coffee shop vibe and those who prioritized speed at the same time. The company ended up alienating both, said RJ Hottovy, an analyst who covers the restaurant industry at data analytics firm 'People want more third place options out there,' Hottovy said. 'To go after that and bring that feeling back for Starbucks is important.' Starbucks is trying to return to its past, but stores won't look like they did 20 years ago. For example, Starbucks is not bringing back the iconic stuffed purple armchairs from the 1990s and 2000s. Starbucks said the fabric was easily worn and hard to keep clean. It retired the purple armchairs in 2008. 'You will see something similar to it returning to our stores,' said Meredith Sandland, a former Taco Bell executive who became Starbucks' chief coffeehouse development officer in February. 'Will it be purple? I don't know. I'll tease that one out.' Each redesign will look slightly different, she said, but they will all include new lighting, colors, better acoustics and other improvements across more than 10,000 company-owned US locations. Starbucks also has around 7,000 licensed stores in the United States. Starbucks also plans a variety of different seats in stores to encourage people to come in for different purposes – working solo on a laptop, having a meeting or reading a book, she said. The goal is to make Starbucks feel more like a boutique setting, not a McDonald's. 'I think of a 'third place' as a place that should be warm and welcoming (and) feel a little bit more like a hotel lobby than maybe a fast food restaurant,' she said.
Yahoo
13-06-2025
- Business
- Yahoo
Starbucks unveils generative AI assistant to support baristas
Starbucks has announced the launch of Green Dot Assist, a generative AI-powered virtual assistant designed to support baristas in real-time. The solution allows partners to ask questions on in-store iPads verbally or via the keyboard and obtain conversational and instant replies, streamlining access to information needed during work. Green Dot Assist offers guidance on drink ingredients, equipment troubleshooting and staffing issues. Starbucks is piloting the AI assistant in 35 coffeehouses, with more to follow. Its launch is a step forward in the chain's focus on decreasing friction, streamlining operations and providing time for partners to prepare beverages and connect with clients. The coffee giant showcased the technology to more than 14,000 North American store managers at its Leadership Experience in Las Vegas. A broad launch is planned across Canada and the US by the chain's fiscal year 2026. Starbucks chief technology officer Deb Hall Lefevre was quoted by CNBC: 'It's just another example of how innovation technology is coming into service of our partners and making sure that we're doing all we can to simplify the operations, make their jobs just a little bit easier, maybe a little bit more fun, so that they can do what they do best.' In addition to Green Dot Assist, Starbucks is previewing its next-generation point-of-sale (POS) system, which aims to improve order accuracy, uptime [the time in which machinery is in operation] and partner workflow. The chain is testing pilot menu innovations via the Starting Five programme, in which select locations in the US trial new products. The introduction of the AI assistant follows a recent leadership reshuffle at Starbucks, with North America chief coffeehouse officer Mike Grams promoted to chief operating officer (COO). The chain has also unveiled a strategic price decrease for its tea-based beverages in its second-largest market, China. "Starbucks unveils generative AI assistant to support baristas" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
