• Starbucks is overturning the mobile-only model. In fact, it is being geared towards rebuilding the human connection in-store.
• Brian Niccol, the CEO, is leading this brand-wide reset focused on experience and not scale.

Starbucks is no mere coffee-making company – it is a brand that helped redefine coffee for the masses.

From the initial store in Seattle in 1971 to its more than 41,097 locations in over 80 countries as of June 2025, Starbucks created a lifestyle around coffee. It was never about merely the product; it was about the ambience – espresso machines grinding away in the background, taking your name for your cup, and we invite you to sit and chill for a while.

In the late 1990s and early 2000s, Starbucks fuelled a global movement. It turned coffee drinking into a cultural act. The green siren became a sign of urban rhythm, from New York and Tokyo to London and Dubai.

Facing a Competitive Global Coffee Market

With the brand expansion, the competition turned aggressive beyond severe. New brands like Costa Coffee (by Coca-Cola), Dunkin’, Tim Hortons, and small independent coffee shops started to threaten the dominance held by Starbucks. Local chains like Luckin Coffee then grew quickly in China by focusing on app-first convenience.

Starbucks continued its reign with a view of growth in small and medium-sized players through scale, loyalty programmes, and retailers. It has about 40% of the branded coffee shop market share in the USA. In China, Starbucks maintained its reputation as one of the biggest foreign food service brands, with 7,828 stores as of Q3 FY25.

Revenue Challenges and Market Signals

Despite this, growth hasn’t been linear.

In its Q3 2025 earnings report (ending June 29), Starbucks posted a 2% decline in global same-store sales. U.S. comparable store sales dropped by 2%, while China posted a 2% increase—a modest but important shift from previous stagnation.

The report also showed a 2% decline in global comparable transactions. While specific figures for mobile orders were not broken out, this trend reflects broader operational challenges.

The End of the Mobile-Only Era

One of the most symbolic moves: phasing out mobile-only stores.

These locations, introduced during the COVID-19 pandemic, were built for efficiency. No seats. No baristas behind counters. Just app orders and pick-up shelves.

But as customer habits shift again post-pandemic, CEO Brian Niccol says the brand must refocus on what made it powerful: the human connection.

“We’re evolving the store experience,” Niccol said during the company’s latest investor call. “Connection and warmth are central to who we are.”

Brian Niccol’s Leadership and Brand Vision

Niccol, who officially began as Starbucks CEO in September 2024 following his appointment in August that year, brings experience from Yum! Brands and Chipotle. He is applying a brand-first lens to operations.

Under his leadership, Starbucks is undergoing a global strategy reset that focuses less on expansion and more on in-store meaningful engagement.

Priorities:

• Reimagine store formats to favour digital-human experiences
• Train people in the art of hospitality, not speed
• Invest now towards upgrading current locations while still dribbling and growing into key markets.

A Strategy That Spans Continents

This isn’t just about the US or UK. It’s global.

In China, Starbucks plans to add 1,000 new stores by 2026 with diversified formats, including community stores, drive-thrus, and premium flagship sites.

In the Middle East and Southeast Asia, Starbucks continues to work with licensed operators like Alshaya Group to deliver locally adapted but brand-consistent experiences.

In Europe, reinvestment is being directed toward high-footfall locations and store redesigns that emphasise the “third place” model.

Pricing Strategy: Nuanced and Market-Responsive

Niccol has stated that pricing actions are a last resort. The brand is instead focused on enhancing value through experience and loyalty.

That said, Starbucks having acceded in mid-2025 to lower prices for iced drinks in China, with competitive forces being at work, shows that price, being that flexible lever, can unfailingly be pulled when and where needed.

Starbucks Rewards remains central to customer engagement. The U.S. program has over 32 million active members and accounts for 57% of U.S. revenue. There is no verified global percentage for loyalty-driven sales.

Repositioning the Brand for the Future

Even a strong loyalty programme can’t overcome a weak in-store experience. This is why the store reset is essential.

Starbucks is repositioning itself. No longer will it be about the fastest coffee provider; it will focus on humanism. 

Therefore, there will be a smooth transformation away from mobile-only units towards hybrid units offering digital convenience for real-world interaction.

Strengthening the Emotional Connection

The brand equally brings and shifts its marketing focus into storytelling with baristas, rituals, and local relevance. The goal is to build emotional equity in a competitive market.

Starbucks’ peers are moving in similar directions. Blue Bottle Coffee, backed by Nestlé, is prioritising small-format, high-end stores. Pret A Manger is investing in subscriptions and food-led traffic.

Still, Starbucks remains the benchmark in global coffee retail. Its strategic decisions often serve as a bellwether for the industry.

A Global Brand Betting on Human-Centric Value

This transformation—away from faceless convenience and toward personal experience—may seem unexpected in a digital-first economy.

But Starbucks is betting that consumers don’t just want fast coffee. They want meaningful interactions.

That might take longer to scale. But for the world’s largest coffeehouse chain, the goal is to feel personal at any size.