Starbucks Ends Pickup-Only Locations, Citing Lack Warmth
As the largest coffee chain in the world continues to restructure its business, Starbucks says it will phase out its pickup-only locations because they “lack warmth.”
In the US, the company operates approximately 90 stores without seating areas, a strategy that some of its competitors find appealing.
According to the BBC, the company’s mobile ordering service, which handles nearly a third of transactions, will not be impacted by the change.
After the company’s reports for the three months ending in June revealed that same-store sales had declined for the sixth consecutive quarter, Starbucks CEO Brian Niccol made the remarks.
Investors were informed on Tuesday by Mr. Niccol that “we found this format to be overly transactional and lacking the warmth and human connection that defines our brand.”
Mr. Niccol went on to say that its traditional cafes can offer the same degree of convenience through mobile ordering.
In its cafes and drive-throughs, the firm would instead prioritize “welcoming coffeehouses with great seats” and concentrate on delivering drinks in four minutes or less.
We are aware that some of the existing pickup-only locations will be transformed to include seating.
In order to facilitate order collection and delivery, Starbucks built its first pickup-only location in New York in 2019.
Mr. Niccol is in charge of the “Back to Starbucks” campaign, which attempts to improve consumer satisfaction and increase the business’s bottom line.
According to Mr. Niccol, by the end of the following year, at least 1,000 of its cafes in the US will have been renovated with a new aesthetic and plans to replace thousands of chairs that were taken out.
Mr. Niccol stated in April that the company would reduce its robotic rollout ambitions and recruit more baristas.
Additionally, the business is updating its dress code and menus.
The chain boasts over 41,000 locations worldwide.
During Tuesday’s extended trading in New York, Starbucks’ stock increased by over 4.5 percent.
