Starbucks to close its mobile pickup-only stores amid strategy shift
What's the story
Starbucks has announced plans to close or revamp up to 90 of its mobile order-only stores in the US by 2026. The decision comes as part of a broader strategy to reassess its North American portfolio and ensure the right coffeehouses are in place for profitability and customer experience. The move marks a departure from the company's initial focus on quick-service outlets in high-traffic areas such as airports and city centers.
Change in strategy
Pick-up only locations 'overly transactional'
Starbucks CEO Brian Niccol has admitted that the company's pick-up-only locations have been "overly transactional and lacking warmth." The admission highlights a shift away from the brand's traditional focus on creating a welcoming environment for customers. To address this, Starbucks plans to invest $150,000 per store in improvements such as upgrading seating, better lighting, and a cozier feel.
Revamp plan
The $500 million 'Green Apron Service' initiative
The changes at Starbucks are part of a larger $500 million effort called the "Green Apron Service." The initiative aims to reintroduce hospitality into the brand's business model and make visiting Starbucks more inviting and personal. Some of these mobile-only stores will be converted into traditional cafes as part of this revamp plan.