Can Starbucks fix long lines at its airport cafes?

Core Insights - Starbucks is facing long wait times at airport locations, which has drawn attention from the new CEO, Brian Niccol, who aims to improve customer experience and sales [4][8][11] - The surge in air travel, particularly during peak times like Thanksgiving, has exacerbated congestion at airport Starbucks, highlighting operational challenges [6][5][12] - Starbucks' licensed locations, which account for 12% of its revenue, face unique operational challenges, impacting profitability compared to company-owned stores [22][23][21] Group 1: Customer Experience and Operational Challenges - Customers have reported long wait times at airport Starbucks, with some experiencing waits of over 10 minutes, compared to shorter waits at non-airport locations [3][4] - The new CEO has set a goal to reduce service times to four minutes to enhance customer satisfaction and reduce long lines [9][4] - The implementation of mobile order and pay at airport locations has not fully resolved the chaos at counters, as many travelers may not have the app [10][11] Group 2: Air Travel Trends and Revenue Opportunities - A record 1.05 billion people boarded flights in the U.S. in 2023, indicating a strong recovery in air travel post-pandemic [7] - Concessions, including Starbucks, contribute about 4% of U.S. airport revenue annually, making them vital for passenger experience [12] - Airports are undergoing renovations and expansions, creating more opportunities for food and beverage brands, including Starbucks [15][14] Group 3: Licensing Model and Financial Implications - Starbucks operates about 60% of its U.S. locations, with the remaining 40% run by licensees, which limits its control over airport operations [21][20] - Licensed locations generated $4.51 billion in revenue for Starbucks in fiscal 2024, but the company earns less per dollar spent compared to company-owned stores [22][23] - The operational challenges at licensed locations can affect Starbucks' brand reputation, as customers may not distinguish between company-owned and licensed stores [24][20]