Starbucks is revamping their business model. They plan to create a “Welcome to Starbucks, Make Yourself At Home” kind of vibe by enhancing the customer experience. The company has been struggling but believes that by welcoming customers to order and stay for a while things will turn around. To achieve this goal, they need to make some changes.
First, they will close 90 pick up only locations. These app only Starbucks cafes were intended to appeal to busy Gen Z’s, yet failed. Brian Niccol, CEO of Starbucks, said company earnings prove that customers prefer a human connection over high-tech. Some locations will be converted but most will be closed by the end of 2026. Meanwhile there is a program under way to renovate select Starbucks stores to be more relaxed and inviting. A place that feels like a home away from home.
Let’s face it, today’s Starbucks isn’t an ideal meetup spot. The tables are small, the seats are hard, and it’s difficult to find a place to plug in a device. It’s not comfortable. The new Starbucks model will be the opposite. Very chic in appearance with new lighting, larger tables, multiple charging stations, and cushier couches and chairs. They intend to make the new and improved Starbucks a place where you could relax while working or visiting with friends.
If you are a fan of the Starbucks app, you have something to look forward to. The new app will offer a more personalized experience, more pay options, and better rewards. Currently there are 34 million 90-day active rewards members and Starbucks goal is to see that number grow. Apps are great. We all love convenience, but we crave connection. If Starbucks can deliver on warmth along with their coffee, they are likely to see their financials skyrocket.