Starbucks CEO Brian Nicole closes a comfortable comfort that has been explicitly targeted towards Gen z taste for “friction” experiences: Only they arePick up“The stores. The step indicates a deliberate shift away from the high -speed model that is driven by technology, which has determined a lot of the last expansion of the series. The coffee giant will convert or close approximately 80 to 90 of these mobile sites only at the country level at the end of the year that prefers to work on the traded lands, as it was preferred to be more than Mobile devices..
Upon announcing the closure, Niccol was directly about the logical basis on Starbucks on Tuesday with analysts. He said: “We have found that this coordination is excessive transactions and lacks warmth and human communication that determines our brand.”
These stores are mainly designed in urban centers, airports and hospitals, and these stores are designed to increase comfort to the maximum-no cash records, limited or zero seats, and an effective experience to seize through Starbucks. Starbucks wants to return the warm cafe.
This step comes amid a period of challenge and transition to Starbucks. Sales in stores that were open for at least one year decreased Six quarters of consecutiveWith North American sales decreased by 2 % recently. Analysts refer to clients’ fatigue through non -personal and developed transactions about technology and “spirit -free” atmosphere, especially since competitors offer new forms of hospitality and participation. It is also a difficult needle of threads, as Starbucks revealed in its profits that 31 % of all transactions are mobile, making it an important part of the work.
The company remains committed, according to Niccol, to enhance digital experiences and mobile phones through technical promotions to the Starbucks application and the rewards program, which was appointed in 2026. But other Starbucks procedures indicate that these experiments should not Feel mobile.
Nicole, who took over the position of CEO in September 2024, subject his strategy to restore the emotional resonance of the brand, repeating the recognition of former CEO Howard Schultz that consumers need. “The third space“This was not at home or work. Nicole argued in the call that the client value perceptions are close to its highest levels for two years, and it is driven by the gains between General Z and Millennials, who make up more than half of the Starbucks customer base. It appears that younger consumers want more warm than they had previously thought.
Raise through green buttons
I have a running program “Uplift” its cafesWhich includes an investment of $ 150,000 per store to upgrade seats, lighting and air in more standard locations. Returns the new preliminary model stores-which are tried in New York City-reinforcing comfortable chairs, power outlets, large tables, and strengthening a more collective and life-friendly environment. Nicole said that only some mobile stores will be converted into this new setting, as it makes sense.
“We are planning to complete an evaluation of our North America’s wallet by the end of this fiscal year to ensure that we have the appropriate cafes in the appropriate sites to pay profitability and provide a Starbucks experience,” Nicole said in the profit call..
Starbucks also experiment with smaller stores of coordination with limited seats to mix comfort with a space-feeling-another brand that the brand does not give up. While the company is preparing for sunset, Starbucks doubles its heritage: cafes as a reservation for society, not only the engines of efficiency. The era of “App-Only” Starbucks ends, as the company bets that its future lies in a connection, not just comfort.
These investments are part of the “Green Vegetable Service” initiative, which costs $ 500 million, which aims to restore “hospitality” to its business center. It includes the rules of the renewed Parista dress, yes, the green apron, but also emphasizes personal service. Starbucks believes that this is what General Z really wants, and not a mobile arrangement without friction that barely involves interacting with man. There is another evidence that General Z desires more human relationship, with 91 % for Harris poll news They want more balance between distant and office work.
Starbucks Coo Mike Grams Talk with CNBC Earlier this week, he also presented ideas on how the company Gen Z. He argued in favor of what the company describes as “generosity of hospitality”, and when asked about “social signals”, he described how Starbucks works to get rid of a more self -experience. “The relationship is different things for different people,” he said, on the pretext that Starbucks Paristas is in a good position “to understand what every individual agent wants at that moment for time.” In other words, Starbucks risk a collision with “”General Z Staq“Because it works to ensure that the human relationship is in the forefront and the middle in its work.
Upon arrival for the comment, Starbucks indicated luck To the profit report and Niccol’s comments on the analyst’s call.
For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.
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