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Starbucks Scales Operational Excellence with Green Apron, AI-Powered Service

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  • 5 August 2025
  • 2 minute read
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This article was written by Hospitality Technology. Click here to read the original article

image

Customer Connection

 

Speed of service matters, and Starbucks has a goal of service guests in less than 4 minutes for counter service and the drive-thru. Average peak drive-thru times are under its service time goal at 3 minutes and 20 seconds across more than 7,600 drive-thru coffeehouses.

One of those KPIs that indicate the brand is heading in the right direction. Guest feedback is positive: customer connection scores are up and customer complaints are down, both quarter-over-quarter and year-over-year, Niccol said.

“Customers are liking our marketing and noticing that our speed, hospitality and accuracy are improving. Customer value perceptions are near two-year highs, driven by gains among Gen Z and millennials who make up over half our customer base,” he said.

Another metric: customers who are not members of Starbucks Rewards delivered transaction growth year-over-year for the first time since the brand’s post-pandemic recovery. And the brand is resonating with Gen Z. “Our college and university license business saw year-over-year comparable sales growth in the low double digits, showing renewed brand love from younger customers,” added Niccol. 

 

Store Design & Prototypes

Starbucks plans to remodel 1,000 U.S. coffeehouses by the end of next year, investing approximately $150,000 per store with minimal downtime. “We slowed new builds and major renovations to prioritize a new coffeehouse uplift program,” said Niccol. These redesigns will restore seating, enhance ambiance, and introduce design elements focused on warmth and texture.

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The Coffeehouse of the Future prototype is also in development, with a 32-seat standalone model featuring a drive-thru and 30% lower build costs debuting in fiscal 2026. A 10-seat NYC location will open in the coming months. Starbucks will also sunset its 80+ mobile order and pickup-only locations in FY26, focusing instead on community coffeehouses that balance convenience with human connection.

“We believe this new prototype will deliver an exceptional customer experience, improve unit economics and unlock growth opportunities in more markets. We plan to complete an evaluation of our North American portfolio by the end of this fiscal year to ensure we have the right coffeehouses in the right locations to drive profitability and deliver the Starbucks Experience,” said Niccol.

Starbucks Rewards Reinvention

Looking ahead to 2026, Starbucks plans to reimagine its Rewards program, which currently has 34 million active members. 

Niccol said the rewards program has become too much of a “one-size-fits all” “discounting mechanism as opposed to a program that really recognizes people for their loyalty and builds more engagement…

“We have an incredible digital business, and in 2026, we’ll lean in further with the new Starbucks app and significant enhancements to Mobile Order and Pay,” Niccol said. The goal: deepen loyalty, boost brand engagement, and reduce reliance on discount-driven transactions.

“We’ll continue to drive growth and loyalty with our rewards customers through a reimagined loyalty program next year,” Smith said. Starbucks has already reduced discounted transactions by one-third, “putting us back to more normalized levels as we build back a healthier transaction base and focus on improving the overall value proposition for our customers,” she added.

Please click here to access the full original article.

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