Latest news with #Niccol
Yahoo
44 minutes ago
- Business
- Yahoo
Starbucks is discontinuing mobile order and pickup-only stores
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Starbucks is doubling down on bringing back the third place as in-store customers remain a top priority for the company. The Seattle-based coffee chain will begin sunsetting its mobile order and pickup-only stores, which were first introduced in 2019, CEO Brian Niccol said during Tuesday's earnings call for the third quarter ended June 29, 2025. Instead, Starbucks will be focusing on implementing two new store prototypes that are off-premises-focused but not exclusively pickup-only. The new standalone prototype, which will open in 2026, has 32 seats, a drive-thru, and approximately a 30% lower cost to build. An urban small format version with approximately 10 seats is under construction in New York City and will open in the next few months, Niccol said. Starbucks later confirmed that not all of these mobile order-only stores will close, and some will be converted into traditional coffee shops. 'We plan to complete an evaluation of our North America stores to ensure we have the right coffeehouses and the right ability to deliver the Starbucks experience,' Niccol said during Tuesday's earnings call. 'We found the [mobile order and pickup] format to be overly transactional and lacking the warmth and human connection that defines our brand. We have a strong digital offering and believe we can deliver the same level of convenience through our community coffee houses with a superior mobile order and pay experience.' Focusing on in-person human connection is the goal of Green Apron Service — the new operations model Starbucks just announced in conjunction with third-quarter earnings. Green Apron Service is underway and includes changes that have already been implemented like bringing back handwritten names and notes on cups. Starbucks will begin fully scaling the new service model to company-owned stores in August. 'Green Apron Service starts with five key moments, including craft and connection, that define the experience we want every customer to have every time they visit,' Niccol said. 'It is enabled by an evolved staffing model, which includes adjustments to roster size, labor hours, peak coverage, and deployment.' Calling it, 'a different kind of service experience,' Niccol said that in stores where the service model has already been piloted, there have been noticeable improvements in transactions, sales, and customer service times. Starbucks is simultaneously rolling out 'Smart Queue' technology, an advanced order sequencing algorithm that is designed to ensure consistent and timely service in Starbucks stores across channels. This new algorithmic approach has led to a 'double-digit improvement in café orders handed off in under four minutes, with 80% of in-cafe orders now meeting that target,' Niccol added. With the focus on improving both service times and in-café experiences, Niccol implied that mobile order and pickup-only stores are not needed anymore since cafes should meet all consumer needs, including customers in a hurry. 'The cafes we operate should be warm and welcoming and provide a place for customers to connect and gather,' he said. 'They should have a great seat for any occasion, and they should provide customers a high-quality mobile order and pay experience.' Contact Joanna at
Yahoo
an hour ago
- Business
- Yahoo
Starbucks is discontinuing mobile order and pickup-only stores
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Starbucks is doubling down on bringing back the third place as in-store customers remain a top priority for the company. The Seattle-based coffee chain will begin sunsetting its mobile order and pickup-only stores, which were first introduced in 2019, CEO Brian Niccol said during Tuesday's earnings call for the third quarter ended June 29, 2025. Instead, Starbucks will be focusing on implementing two new store prototypes that are off-premises-focused but not exclusively pickup-only. The new standalone prototype, which will open in 2026, has 32 seats, a drive-thru, and approximately a 30% lower cost to build. An urban small format version with approximately 10 seats is under construction in New York City and will open in the next few months, Niccol said. Starbucks later confirmed that not all of these mobile order-only stores will close, and some will be converted into traditional coffee shops. 'We plan to complete an evaluation of our North America stores to ensure we have the right coffeehouses and the right ability to deliver the Starbucks experience,' Niccol said during Tuesday's earnings call. 'We found the [mobile order and pickup] format to be overly transactional and lacking the warmth and human connection that defines our brand. We have a strong digital offering and believe we can deliver the same level of convenience through our community coffee houses with a superior mobile order and pay experience.' Focusing on in-person human connection is the goal of Green Apron Service — the new operations model Starbucks just announced in conjunction with third-quarter earnings. Green Apron Service is underway and includes changes that have already been implemented like bringing back handwritten names and notes on cups. Starbucks will begin fully scaling the new service model to company-owned stores in August. 'Green Apron Service starts with five key moments, including craft and connection, that define the experience we want every customer to have every time they visit,' Niccol said. 'It is enabled by an evolved staffing model, which includes adjustments to roster size, labor hours, peak coverage, and deployment.' Calling it, 'a different kind of service experience,' Niccol said that in stores where the service model has already been piloted, there have been noticeable improvements in transactions, sales, and customer service times. Starbucks is simultaneously rolling out 'Smart Queue' technology, an advanced order sequencing algorithm that is designed to ensure consistent and timely service in Starbucks stores across channels. This new algorithmic approach has led to a 'double-digit improvement in café orders handed off in under four minutes, with 80% of in-cafe orders now meeting that target,' Niccol added. With the focus on improving both service times and in-café experiences, Niccol implied that mobile order and pickup-only stores are not needed anymore since cafes should meet all consumer needs, including customers in a hurry. 'The cafes we operate should be warm and welcoming and provide a place for customers to connect and gather,' he said. 'They should have a great seat for any occasion, and they should provide customers a high-quality mobile order and pay experience.' Contact Joanna at Sign in to access your portfolio
USA Today
2 hours ago
- Business
- USA Today
Starbucks is closing all pickup-only stores, CEO says. See locations.
Starbucks will be doing away with its pickup-only store model in 2026, CEO Brian Niccol announced on an earnings call this week. Niccol, who has been at the helm since September 2024, said the venture was no longer compatible with the Seattle based coffee chain's plan to get "back to Starbucks." "We found this format to be overly transactional and lacking the warmth and human connection that defines our brand," Niccol said July 29. Introduced in New York in 2019, "Starbucks Pick Up" was designed to simplify coffee runs. Customers would (and still can) place mobile orders, pick them up and move on with the day. Approximately 80 to 90 Starbucks "Pick Up" stores across more than 20 states will be impacted, with some locations facing permanent closure while others will be converted into traditional coffeehouses at a later date, according to Niccol and the chain's website. Starbucks did not respond to comment about the future of specific locations, which were built inside downtown areas, airport terminals and hospitals in cities all over the country. Despite the shift in strategy, the company is not moving away from mobile ordering, as it accounts for 31% of transactions, Starbucks said in a statement to USA TODAY. "We have a strong digital offering and believe we can deliver the same level of convenience through our community coffeehouses with a superior Mobile Order and Pay experience," Niccol said. Here's what to know about the end of Starbucks "Pick Up." What is 'Starbucks Pick Up?' Starbucks describes its "Pick Up" locations as stores "exclusively designed for mobile orders and quick pick up without the wait." When will Starbucks 'Pick Up' locations close? Niccol said the company was looking to "sunset" the concept of mobile order and pickup-only locations in fiscal 2026. Starbucks Pick Up locations Starbucks' website lists "Pick Up" locations across more than 20 states and select airports. See the full list below. Airport locations Arizona California Colorado Connecticut Georgia Hawaii Florida Illinois Maryland Massachusetts Michigan Minnesota New York North Carolina Ohio Oklahoma Oregon Pennsylvania South Carolina Tennessee Texas Virginia Washington
CNBC
18 hours ago
- Business
- CNBC
Jim Cramer says he's confident about Starbucks' long-term potential. Here's why
CNBC's Jim Cramer on Wednesday explained why he's positive on Starbucks for the long term, even as the coffee chain reported a same-store sales decline that led to a choppy day of trading. "If Brian Niccol keeps delivering on the turnaround front, I bet Starbucks and its shareholders will be huge winners," he said. "That's still my expectation here, and I feel even better about it tonight than I did last night before the company reported." Starbucks posted a revenue beat but didn't meet earnings estimates. The coffee company saw same-store sales fall for the sixth consecutive quarter, but CEO Brian Niccol said its turnaround strategy is ahead of schedule. After starting the day up big, shares of Starbucks plunged during the session but largely managed to rebound and finish down 0.22%. While Cramer said Starbucks' headline numbers were disappointing, he was encouraged by the overall quarter. He attributed some of the earnings miss to one-off items like a tax charge and an expensive leadership meeting. While global same-store sales were weak, Cramer pointed out that there was improvement in certain regions, like North America and China. Cramer expressed support for Niccol and noted that he was able to turn business around at Chipotle when he served as the CEO for the fast casual restaurant chain. Cramer was pleased with Niccol's earnings remarks about promising results from recent trials of Starbucks' "Green Apron Service" operating model. The new program aims to improve customers' in-store experience with friendlier customer service and personal touches like sharpie drawings on cups. Niccol said Starbucks is accelerating the rollout of the program after the trials' success. To Cramer, Starbucks' most important task is to improve its core domestic business — and the recent quarter suggests that is starting to happen, he said. "Don't worry about these short-term swings, which were kind of a microcosm of the stock's whole first year under Niccol's leadership," he said. "Focus on what matters: the long-term turnaround plan, which is going well ahead of schedule." Starbucks did not immediately respond to request for comment. Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest The CNBC Investing Club owns shares of Starbucks.
Yahoo
20 hours ago
- Business
- Yahoo
Starbucks is shutting down an entire line of cafes
Starbucks is shutting down its pick-up only store model just six years after introducing the concept, because they no longer mesh with the struggling coffee chain's overall strategy. 'We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,' Starbucks CEO Brian Niccol said on its earnings call late Tuesday. Launched in New York in 2019, the pick-up only stores encouraged customers to order via their mobile app and wasn't meant to be a place to linger, like a traditional location that has seating. Although some have a small indoor area, others have only pick-up windows. Dubbed 'Starbucks Pick Up,' the spin-off eventually grew into roughly 90 locations across the United States, usually built in downtowns, airports and hospitals. Some of those locations might be converted to a traditional Starbucks in the future, but the company didn't respond to comment about which locations will be changed. Niccol said that the company's 'strong digital offering' with its app 'can deliver the same level of convenience through our community coffeehouses.' Since becoming CEO last September, one of Niccol's top directives is restoring the coffeehouse vibes the chain was original known for. That 'third place' objective has diminished in recent years as Starbucks prioritized speed and convenience. In June, the chain took CNN on a tour of a new cafe with cozier chairs, power outlets and larger tables that's intended to be the model for the Starbucks of the future. Niccol unveiled on Tuesday that Starbucks is also building a 'small format version' of its stores with just 10 seats in New York City. 'We believe this new prototype will deliver an exceptional customer experience, improve unit economics and unlock growth opportunities in more markets,' he said. Still, Niccol has a lot of work to do: The chain reported its sixth consecutive quarter of sales declines at stores open at least a year, with North American sales in that category falling 2%. 'While our financial results don't yet reflect all the progress we've made, the signs are clear — we're gaining momentum,' Niccol said. He noted that purchases from non-Rewards members returned to growth and the average receipt transaction grew 1%. Starbucks (SBUX) shares rose nearly 5% in premarket trading. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
