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| Starbucks ditches pickup-only stores because they 'lack warmth' | Starbucks ditches pickup-only stores because they 'lack warmth' |
| (about 1 hour later) | |
| Starbucks says it will phase out its mobile order and pickup-only outlets because they "lack warmth", as the world's biggest coffee chain continues to shakeup its operations. | Starbucks says it will phase out its mobile order and pickup-only outlets because they "lack warmth", as the world's biggest coffee chain continues to shakeup its operations. |
| The company has around 90 shops in the US that have no seating for customers - an approach popular with some of its rivals. | The company has around 90 shops in the US that have no seating for customers - an approach popular with some of its rivals. |
| The move will not affect the firm's mobile ordering service, which accounts for almost a third of transactions, the BBC understands. | The move will not affect the firm's mobile ordering service, which accounts for almost a third of transactions, the BBC understands. |
| Starbucks boss Brian Niccol made the comments after the company's earnings for the three months to the end of June showed that US same-store sales had fallen by 2% - the sixth quarterly decline in a row. | |
| For the same period the company also reported that net income dropped by 47% to $558m (£418m) - worse than Wall Street expectations. | |
| "We found this format to be overly transactional and lacking the warmth and human connection that defines our brand," Mr Niccol told investors on Tuesday. | "We found this format to be overly transactional and lacking the warmth and human connection that defines our brand," Mr Niccol told investors on Tuesday. |
| The same level of convenience can be provided by its traditional cafes through mobile ordering, added Mr Niccol, who was appointed the firm's chief executive officer last year. | |
| Instead, the company will prioritise "welcoming coffeehouses with great seats" and focus on delivering drinks in four minutes or less in its cafes and drive-throughs. | Instead, the company will prioritise "welcoming coffeehouses with great seats" and focus on delivering drinks in four minutes or less in its cafes and drive-throughs. |
| The BBC understands that some of the current pickup-only outlets will be converted to include seating. | The BBC understands that some of the current pickup-only outlets will be converted to include seating. |
| Starbucks opened its first pickup-only outlet, which was designed to make collecting orders and delivery easier, in New York in 2019. | Starbucks opened its first pickup-only outlet, which was designed to make collecting orders and delivery easier, in New York in 2019. |
| Mr Niccol is leading a "Back to Starbucks" initiative, which aims to provide better experiences for customers and boost the company's financial performance. | Mr Niccol is leading a "Back to Starbucks" initiative, which aims to provide better experiences for customers and boost the company's financial performance. |
| At least 1,000 of its cafes in the US will be revamped by the end of next year, with a new look and plans to replace thousands of seats that were removed, said Mr Niccol. | At least 1,000 of its cafes in the US will be revamped by the end of next year, with a new look and plans to replace thousands of seats that were removed, said Mr Niccol. |
| In April, Mr Niccol said the firm will hire more baristas and scale back plans to roll out automation. | In April, Mr Niccol said the firm will hire more baristas and scale back plans to roll out automation. |
| The company is also revamping its menus and the company's dress code. | The company is also revamping its menus and the company's dress code. |
| The chain has more than 41,000 outlets around the world. | The chain has more than 41,000 outlets around the world. |
| Starbucks' shares rose by more than 4.5% in extended trading on Tuesday in New York. | Starbucks' shares rose by more than 4.5% in extended trading on Tuesday in New York. |