Starbucks is shutting hundreds of cafes and opening futuristic pickup-only stores in their place.
The days of meeting in a warmly-decorated Starbucks and mulling over Excel spreadsheets over a frappuccino are over, for now.

The pandemic decimates dine-in traffic for restaurants, and Starbucks is responding by shifting a large portion of its business to the pickup-only format. Over the next 18 months, the company plans to close 400 company-owned locations and open 300 new ones. The new stores will largely be pickup-oriented stores.

  •     Starbucks opened its first-ever Starbucks Pickup store in November, a pickup-only location that lets customers order ahead through the chain`s mobile app and pick up their orders in-store.

  •     The pandemic has forced the coffee chain to lean into the pickup-only store format. Starbucks plans to shut around 400 sit-down cafes and build around 300 new pickup-only stores.

  •     I visited the Starbucks Pickup store in Manhattan, New York, and was impressed by the concept.

  •     Pickup`s speedy, high-tech system for ordering coffee could definitely transform the fast-coffee industry. But Starbucks needs to make the concept more accessible to walk-ins, and the company must work hard to build customer awareness before the Pickup concept will run as smoothly as it`s supposed to.

RSK: Starbucks has to be careful here. Sometimes the prize or the goal is not what people seek or enjoy...often times it is the journey that makes it pleasurable.

Ken Notes: Starbucks is about the Space as much as the product.

- - Volume: 8 - WEEK: 26 Date: 6/23/2020 8:16:31 AM -