Latest news with #Nrn
Yahoo
4 hours 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
4 hours 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
Yahoo
6 days ago
- Business
- Yahoo
Chipotle's CEO doesn't think the company gets enough credit for its value proposition
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. In the first quarter of 2025, Chipotle chief executive officer Scott Boatwright said the 'consumer is sitting on the sideline' due to heightened macroeconomic uncertainty. This trend led to the chain's first negative same-store sales report since the throes of the pandemic in 2020. Chipotle reported its second quarter 2025 results after market on Wednesday, and it seems as though the consumer hasn't budged. Those results included a 4% decrease in same-store sales, including -4.9% traffic, which were below expectations, causing the company's shares to fall 10% in extended trading. Operating margin also decreased to 18.2%, from 19.7% in the prior-year quarter, while restaurant-level operating margin was 27.4%, from 28.9%. Total revenue increased 3%, to $3.1 billion, driven by the opening of 61 restaurants during the quarter. Boatwright once again acknowledged a challenging environment, with ongoing consumer volatility, but added that trends for both sales and traffic picked up toward the end of June and into July, correlating with a pickup in consumer sentiment scores. However, he said consumers, especially low-income consumers, are still heavily pursuing value deals in a competitive environment and Chipotle needs to work on new and creative ways to communicate its own value proposition. 'Low-income consumers are looking for a price point,' he said. 'Look no further than competitors with snack occasions or $5 meals and that's where the consumer is drifting toward. That causes us to look differently at value. As sentiment improves, the business will improve. That's the biggest headwind we face.' Boatwright went so far as to say he doesn't think Chipotle is getting credit for its value proposition, which extends beyond price point and into convenience and culinary. Changing that perception is a priority in the coming months. 'How do we better communicate our value proposition and center it around the core equities of the brand in a unique way that is authentically Chipotle and not targeted at the competition and not price pointed?' he said. 'We need to figure out how to communicate value and showcase value and that is work we'll lean into in the back part of the year.' Chipotle's recovery plan also includes a continued ramp up of marketing, including an iteration of its successful Summer of Extras promotion that has driven a double-digit increase in loyalty signups and has also re-engaged lapsed users. A similar campaign is expected in the coming weeks targeting college students. The company also anticipates an increase in limited-time offerings in 2026 following its successful launch of Adobo Ranch, its first dip introduction in five years. Kalinowski Equity Research reports a current five-restaurant test of Red Chimichurri Sauce, which could be its next launch. 'We see more opportunity in sides and dips in the future,' Boatwright said. Another tailwind executives expect to show up in the back half of the year comes from its produce slicer rollout, which has been completed, and its continued rollout of its high efficiency equipment package, including a double plancha. The produce slicers, Boatwright said, enables team members to complete prep work on time and be properly deployed for peak periods, while the equipment package — expected to be completed in about three years — should improve consistency and quality while also unlocking new growth platforms, like catering. Catering, by the way, will be tested in about 60 restaurants in the fall. 'Our goal is to scale catering within restaurants without disrupting core operations. It represents 1% to 2% of sales versus our peers who are at 5% to 10%, so we think there's a bigger opportunity longer term,' Boatwright said. As the company awaits these tailwinds to build up speed, Chipotle has lowered its full-year outlook following Q2, from low-single digit same-store sales growth to flat. Still, Boatwright reiterates his confidence in the plan and intends to stay the course. 'All of the consumer metrics we look at show positive progress,' he said. 'We've unpacked this thing 10 ways to understand if this is self-inflicted or a macro problem and there's nothing glaring that says we have a misstep. That gives us the confidence to stay on strategy, innovate where we can, meet consumers where they are, and continue execution in the restaurants.' Contact Alicia Kelso at Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Maria Rivera named CEO of Starbird
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Starbird, a fast casual chicken concept founded in 2016, has named Maria Rivera as chief executive officer, as well as to its board of directors. Founder Aaron Noveshen will transition fully to his role as chairman of the board while remaining an active partner in supporting Starbird's strategic direction. Rivera brings more than two decades of executive experience with globally recognized brands, including Krispy Kreme, Logan's Roadhouse, Darden Restaurants, Caesar's Entertainment, and The Walt Disney Company. Most recently, she served as CEO of Smalls Sliders, spearheading its franchise-driven growth and brand evolution. On her watch, Smalls' sales grew by nearly 90% year-over-year in 2024, while its footprint grew by 118%, according to Technomic. There are now nearly 30 units open, per the company's website, and about 300 locations under agreement or in development. The company also developed its own Pantone color, called "Smorange," which has become synonymous with the brand. 'Maria is a transformative leader with a remarkable track record of building brands with heart, assembling exceptional teams, and driving disciplined growth,' Noveshen said in a statement. 'I'm thrilled to welcome her to the helm and energized by the opportunity to partner with her as we lead Starbird into its next chapter — unlocking new levels of growth, reach, and impact together with our team.' Rivera's hire comes as Starbird accelerates national expansion and franchise growth driven by Noveshen's vision, as well as the investment of longtime partner Dollarhyde Investment Group, and backing from investment firm KarpReilly. The company recently signed new franchise development agreements to expand beyond its home state of California for the first time, including in Salt Lake City and Chicago. 'Starbird represents everything I believe the future of fast food can be — a brand rooted in culinary innovation, operational excellence, and a customer experience powered by technology, hospitality, and heart,' Rivera said in a statement. 'I'm stepping into Starbird with deep respect for the brand Aaron and this team have built — and a clear vision for where we're headed. I'm honored to lead Starbird into its next era — scaling with intention, partnering with best-in-class operators, and delivering craveable food with a conscience to communities nationwide.' Starbird finished 2024 with $47 million in sales, marking a 36.5% year-over-year increase, and over $4 million in average unit volumes, according to Technomic Ignite data, which outpaces most of its fast casual chicken peers. The concept was the winner of Nation's Restaurant News' Chicken Showdown in 2023. Contact Alicia Kelso at
Yahoo
15-07-2025
- Business
- Yahoo
Dave & Buster's appoints former KFC president Tarun Lal as CEO
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Dave & Buster's announced Tuesday the appointment of former KFC U.S. president Tarun Lal as CEO and a member of the board of the eatertainment company, effective July 14. The Dallas-based company had been actively searching for a permanent CEO since Chris Morris stepped down as chief executive in December 2024. 'After a careful and comprehensive search, the Board is thrilled to announce Tarun as our next CEO,' Kevin Sheehan, chairman of the board and interim CEO, said in a statement. 'Tarun is a talented leader and seasoned operator with a highly successful track record of growing and improving businesses and brands in the U.S and around the world. We are confident he will have an immediate impact, grow our business and create substantial shareholder value.' Sheehan has been serving as interim chief executive since December and said at the ICR conference in January that when he left, Morris' leadership 'wasn't working from both sides.' Dave & Buster's has reported several quarter in a row of declining same-store sales that have been attributed to leadership missteps. Lal spent most of his career at Yum Brands, where he held multiple leadership positions over the course of 25 years, including COO of KFC and Pizza Hut India, global COO of KFC, and president of KFC U.S., where he has served since 2022. 'I am truly honored to be joining this incredibly talented team and to lead the company into its next chapter,' Lal said in a statement. 'Dave & Buster's and Main Event are iconic, highly differentiated brands with exceptionally large and loyal customer bases, outstanding unit level and new unit economics and huge potential for growth. I have been deeply impressed with what I have seen so far and sincerely look forward to working closely with our team and the board to deepen our connection with our guests and team members and drive immediate and long-term growth and value for all stakeholders.' Dave & Buster's owns and operates 236 venues across 43 states, Canada, and Puerto Joanna at Sign in to access your portfolio
