"On Thursday, the coffee giant unveiled a $1 billion restructuring plan that will shutter more than 100 North American cafes, cut 900 non-retail jobs, and remodel over 1,000 locations. The reset, CEO Brian Niccol said, is about restoring warmth and comfort - an effort to recreate the "third place" he has championed since taking the helm last year, the hangout between home and work that first made Starbucks a global brand in the 1990s."
"At the same time, Starbucks appears to be losing ground with Gen Z, something it tacitly admitted in its latest earnings, when it moved to shutter mobile-only "pickup" stores built for speed and "frictionless" transactions that it assumed would be catnip for a digital-native generation. Its market share among the cohort has slipped from 67% to 61% over the past two years, marking four consecutive quarters of declines, according to Consumer Edge."
Starbucks unveiled a $1 billion restructuring plan to close more than 100 North American cafes, cut 900 non-retail jobs, and remodel over 1,000 locations. CEO Brian Niccol said the reset aims to restore warmth and comfort by recreating the 'third place' between home and work that originally defined the brand. The company has lost market share among Gen Z, slipping from 67% to 61% over two years, and is closing mobile-only 'pickup' stores built for speed and frictionless transactions. Starbucks concluded the mobile-only format was overly transactional and lacked human connection. Niccol plans to refocus on in-store community hubs favored by Gen Z.
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