Say goodbye to your quick coffee runs: Starbucks is closing its Pick-Up only stores
Starbucks decided to close the mobile order and the Pick-up store model only six years after introducing the concept that appeals to movement customers and also defines most of the latest expansion of the chain.
The movement, which came into force this year, comes because these fast group stores are no longer compatible with the business strategy of the coffee giant.
Logic behind the closing
Brian Niccol, CEO of Starbucks CEO, explaining the logic behind the closing calls with the analysts of Tuesday, said, ik We found that this format is overhearting and deprived of the temperature and human connection defining our brand. ” He said.
The coffee giant also plans to complete an assessment of the North American portfolio to increase profitability and to have the right coffeehouses in the right places to increase profitability and offer the Starbucks experience.
Trust in digital offers
Niccol said Starbucks will transform or close about 80 to 90 to 90 to 90 of these mobile orders throughout the country.
Firstly, these stores built in city centers, airports and hospitals are designed to maximize ease as they do not require any cash registration, limited or zero seating area and facilitated by the Starbucks application. However, with recent changes, Starbucks wants to bring back the hot coffee shop.
Despite these specific stores, Niccol expressed confidence in Starbuck’s current digital capabilities. He believes that the company’s current digital offers are strong enough to provide customers a high level of comfort without the need for a special Pick-up position.
Starbuck’s new approach
Starbucks also announced a program in calling to “upgrade” to earn coffee houses, including investing 150,000 dollars in each store to sit, lighting and raise the atmosphere in more standard places. Niccol said that only some stores of mobile stores will be transformed into this new institution.
Starbucks is also a pilot with limited seating areas, another sign that the brand does not completely abandon the fast service, and another sign that changes its approach instead.
“Application only” Starbucks era ends, because the company states that the future is not only convenience, but connected.
These investments are part of Niccol’s $ 500 million “Green Apron Service” initiative and aims to bring back the “hospitality” business.
(With inputs from Fortune)
