The list of 2021 closures is still growing. More than 12,000 stores closed in 2020, many of them crucial anchor stores that once kept malls afloat. The retail apocalypse has made headlines for years, as some malls die a slow death and retail vacancy rates hit new highs. Starbucks decision to focus on drive-thrus and other formats over some malls makes sense. The coronavirus pandemic sped up the shift to pick-up and to-go locations, Starbucks CEO Kevin Johnson said in an earnings call in 2020.ĭespite the shift in strategy, Starbucks says "high-traffic areas like malls, airports, campuses, and our other licensed locations will remain a key pillar of the Starbucks experience." This reiterates the chain's earlier statement last year, saying "Our vision is that each large city in the US will ultimately have a mix of traditional Starbucks cafés and Starbucks Pickup locations." These developments can all decrease wait times and make drive-thrus more efficient by reducing bottlenecks, Kalinowski Equity Research founder Mark Kalinowski previously told Insider. The coffee chain has started adding double drive-thru lanes, along with implementing video ordering capabilities and handheld tablets for baristas to take orders. Starbucks has invested in new technology and formats as drive-thrus become even more critical to the brand. Update: Ended up driving back to the Starbucks to have them remake the drink. I ordered one of the most basic and popular drinks (caramel macchiato). Second time, I just don't understand what went wrong. On-the-go orders, meaning drive-thru and pickup orders, made up 80% of Starbucks orders prior to the pandemic, Starbucks told Insider, and increased more than 10% over pre-pandemic levels in the first quarter of 2021. The first time, I got my money back by calling customer service through Starbucks. Drive-thru orders have grown across the fast-food industry since the pandemic closed many dining rooms. In the past 12 months, we have opened 554 new stores combined with in-store seating and drive-thru service, repositioning our store portfolio to create a blend of traditional Starbucks stores with convenience-led formats," a Starbucks spokesperson told Insider.įast food and fast-casual brands across the country have optimized drive-thrus over the last year as they became crucial in the age of COVID-19. "Starbucks continues to make meaningful progress to reposition our US store portfolio through this trade area transformation, which is now nearly 80% complete. Read more: How a tiny food-tech startup convinced industry heavyweights like Chick-fil-A and Taco Bell to rely on it to fight a labor shortage McDonald’s also wants to prevent competitors from snatching up good real estate, he said.Account icon An icon in the shape of a person's head and shoulders. This happened today 3/18/22 around noon, just so you know the crew that work there. In the U.S., he said, population shifts have left many parts of the country underserved. Starbucks, Houston: See 8 unbiased reviews of Starbucks, rated 4 of 5 on Tripadvisor and ranked 2,745 of 7,253 restaurants in Houston. I just wanted to give acknowledgment to this store for how great they are in customer service. One of my top 3 places to stop by for some coffee. Kempczinski said he’s not concerned about cannibalizing sales from existing McDonald’s locations. The drive thru line is always 8+ cars long and I can still get my favorite cup of Joe in less than 10 minutes. Sometimes they want to go to the restaurant with their family,” Kempczinski told The Associated Press in an interview. “Not everybody wants delivery every single meal. ![]() But he said it’s important to open actual restaurants and not just delivery-only kitchens. ![]() ![]() Kempczinski said new restaurants will likely have dedicated pickup areas for delivery drivers to ease restaurant congestion. McDonald’s delivery made up $1 billion in global sales in 2017 that has grown to more than $16 billion. McDonald’s said the explosive growth of delivery demand makes it critical to get restaurant locations even closer to customers so food can arrive faster and hotter. McDonald’s is also testing new systems at the small-format CosMc’s restaurants, including drive-thru lanes that manage traffic based on the complexity of orders.
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