Coffeehouse of the future

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Starbucks plans to phase out its mobile-only stores for a future with more 'warmth and human connection'
Business Insiderยท 2025-07-30 04:41
Group 1 - Starbucks is discontinuing its mobile order-only store model, phasing out 80 to 90 pickup-only locations in the US, many of which are in office buildings and lack seating [1] - CEO Brian Niccol stated that these stores felt too transactional and did not provide the warmth or human connection expected by customers [2] - The company is collaborating with CloudKitchens to expand its network in locations like San Francisco, utilizing ghost kitchens to fulfill orders on delivery platforms [3] Group 2 - Starbucks is developing a new "coffeehouse of the future" prototype featuring 32 seats and a drive-thru, set to debut in the next fiscal year [4] - The company plans to invest $500 million over the next year to enhance staffing and improve in-store wait times [4] - Same-store sales have dropped for six consecutive quarters, prompting Niccol to encourage employees to spend more time in the office to help turn the situation around [9] Group 3 - Unpredictable coffee prices and ongoing tariff pressures may lead to challenging financial conditions until 2026, although Niccol mentioned that "momentum is building" and the company is "ahead of schedule" [9] - Following the Q3 earnings report, which fell below analyst expectations, Starbucks shares dipped but rose approximately 3% in after-hours trading, remaining flat for the year [9]