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Why Starbucks Is Killing It's Mobile-Only Pickup Stores For Better "Vibes" | Fast Five Shorts · Omni Talk Retail

• 0:00
  Starbucks
• 0:00
  plans
• 0:00
  to
• 0:00
  abandon
• 0:01
  all
• 0:01
  of
• 0:01
  its
• 0:01
  mobile
• 0:02
  order
• 0:02
  pickup
• 0:03
  only
• 0:03
  stores.
• 0:03
  I
• 0:03
  can't
• 0:04
  wait
• 0:04
  to
• 0:04
  hear
• 0:04
  what
• 0:04
  you
• 0:04
  think
• 0:05
  about
• 0:05
  this
• 0:05
  one
• 0:05
  because
• 0:05
  I
• 0:06
  think
• 0:06
  this
• 0:06
  is,
• 0:07
  you
• 0:07
  know,
• 0:07
  part
• 0:08
  and
• 0:08
  parcel
• 0:08
  of
• 0:08
  a
• 0:08
  strategy
• 0:09
  that
• 0:09
  you
• 0:09
  would
• 0:09
  not
• 0:09
  have
• 0:09
  recommended
• 0:10
  back
• 0:10
  in
• 0:11
  a
• 0:11
  year
• 0:11
  ago
• 0:11
  when
• 0:11
  we,
• 0:11
  when
• 0:12
  Brian
• 0:12
  Nicholl
• 0:12
  first
• 0:12
  took
• 0:13
  over.
• 0:13
  But
• 0:13
  according
• 0:13
  to
• 0:13
  the
• 0:14
  Wall
• 0:14
  Street
• 0:14
  Journal,
• 0:15
  Starbucks
• 0:15
  is
• 0:15
  moving
• 0:16
  away
• 0:16
  from
• 0:16
  operating
• 0:17
  stores
• 0:17
  that
• 0:17
  only
• 0:17
  accept
• 0:18
  mobile
• 0:18
  orders
• 0:18
  for
• 0:18
  pickup
• 0:19
  because
• 0:19
  they
• 0:19
  don't
• 0:20
  have
• 0:20
  the
• 0:20
  right
• 0:20
  vibes.
• 0:21
  The
• 0:22
  company
• 0:22
  operates
• 0:23
  around
• 0:23
  80
• 0:23
  to
• 0:23
  90
• 0:24
  locations,
• 0:24
  some
• 0:25
  of
• 0:25
  which
• 0:25
  are
• 0:25
  in
• 0:25
  office
• 0:25
  buildings
• 0:26
  that
• 0:26
  don't
• 0:26
  offer
• 0:26
  seating
• 0:27
  and
• 0:27
  are
• 0:28
  designed
• 0:28
  to
• 0:28
  get
• 0:28
  customers
• 0:29
  out
• 0:29
  quickly.
• 0:30
  Some
• 0:30
  locations
• 0:30
  could
• 0:31
  even
• 0:31
  be
• 0:31
  converted
• 0:32
  to
• 0:32
  locations
• 0:32
  with
• 0:33
  seats.
• 0:33
  Quote,
• 0:34
  we
• 0:34
  found
• 0:34
  that
• 0:34
  the
• 0:34
  format
• 0:35
  was
• 0:35
  overly
• 0:36
  transactional
• 0:36
  and
• 0:37
  lacking
• 0:37
  the
• 0:37
  warmth
• 0:38
  and
• 0:38
  human
• 0:38
  connection
• 0:38
  that
• 0:39
  defines
• 0:39
  our
• 0:39
  brand.
• 0:40
  Chief
• 0:40
  Executive
• 0:40
  Officer
• 0:41
  Brian
• 0:41
  Niccol
• 0:42
  told
• 0:42
  investors
• 0:43
  on
• 0:43
  a
• 0:44
  recent
• 0:44
  earnings
• 0:45
  call.
• 0:45
  And
• 0:46
  do
• 0:46
  you
• 0:46
  agree
• 0:46
  or
• 0:47
  disagree
• 0:47
  with
• 0:47
  Starbucks
• 0:48
  decision
• 0:48
  to
• 0:48
  shut
• 0:49
  down
• 0:49
  its
• 0:49
  mobile
• 0:49
  only
• 0:50
  pickup
• 0:50
  stores?
• 0:52
  Okay,
• 0:53
  I
• 0:53
  disagree
• 0:53
  completely
• 0:54
  personally
• 0:55
  with
• 0:55
  removing
• 0:56
  the
• 0:56
  pickup
• 0:56
  only
• 0:56
  stores,
• 0:57
  but
• 0:57
  I
• 0:58
  think
• 0:58
  clearly
• 0:59
  there
• 0:59
  are
• 0:59
  things
• 0:59
  behind
• 1:00
  the
• 1:00
  scenes
• 1:00
  going
• 1:00
  on
• 1:00
  that
• 1:01
  we
• 1:01
  don't
• 1:01
  know
• 1:01
  about.
• 1:02
  I
• 1:02
  think
• 1:03
  the
• 1:03
  thing
• 1:03
  that
• 1:03
  rubs
• 1:04
  me
• 1:04
  the
• 1:04
  wrong
• 1:04
  way
• 1:05
  in
• 1:05
  the
• 1:05
  most
• 1:06
  here
• 1:06
  with
• 1:06
  this
• 1:06
  story
• 1:07
  is
• 1:07
  that
• 1:07
  you're
• 1:08
  using
• 1:09
  the
• 1:09
  statement
• 1:10
  bad
• 1:10
  vibes
• 1:11
  in
• 1:11
  any
• 1:11
  statement
• 1:12
  about
• 1:12
  a
• 1:12
  visit.
• 1:12
  I
• 1:13
  don't
• 1:13
  like
• 1:13
  that
• 1:13
  too.
• 1:13
  What
• 1:14
  in
• 1:14
  the
• 1:14
  hell
• 1:14
  are
• 1:14
  you
• 1:15
  thinking?
• 1:15
  That
• 1:15
  seems
• 1:15
  crazy,
• 1:16
  but
• 1:16
  here's
• 1:17
  my
• 1:17
  question.
• 1:18
  I
• 1:18
  want
• 1:18
  to
• 1:19
  know
• 1:20
  because
• 1:20
  I
• 1:20
  don't
• 1:20
  think
• 1:21
  we
• 1:21
  have
• 1:21
  a
• 1:21
  good
• 1:21
  picture
• 1:22
  of
• 1:22
  what
• 1:22
  Nichols
• 1:23
  actual
• 1:23
  vision
• 1:24
  is
• 1:24
  for
• 1:25
  these
• 1:25
  future
• 1:26
  coffee
• 1:26
  houses.
• 1:26
  What
• 1:27
  is
• 1:27
  the
• 1:27
  right
• 1:27
  vibe
• 1:28
  that
• 1:29
  he's
• 1:29
  going
• 1:29
  for?
• 1:30
  Because
• 1:30
  in
• 1:31
  the
• 1:31
  article
• 1:32
  that
• 1:32
  talks
• 1:32
  about
• 1:33
  we're
• 1:33
  going
• 1:33
  to
• 1:33
  have
• 1:34
  a
• 1:34
  coffee
• 1:34
  house
• 1:34
  that
• 1:34
  has
• 1:34
  32
• 1:35
  chairs
• 1:35
  and
• 1:35
  a
• 1:36
  drive
• 1:36
  through
• 1:36
  that
• 1:37
  already
• 1:37
  exists
• 1:38
  that's
• 1:38
  not
• 1:38
  anything
• 1:39
  new.
• 1:39
  And
• 1:39
  the
• 1:39
  drive
• 1:40
  throughs
• 1:40
  are
• 1:40
  awful
• 1:40
  experiences.
• 1:41
  They
• 1:42
  still
• 1:42
  take
• 1:42
  too
• 1:42
  long.
• 1:42
  They're
• 1:43
  not
• 1:43
  getting
• 1:43
  the
• 1:43
  throughput.
• 1:44
  So
• 1:44
  I
• 1:44
  think
• 1:45
  a
• 1:45
  better
• 1:45
  mobile
• 1:46
  experience
• 1:46
  is
• 1:46
  an
• 1:47
  absolute
• 1:47
  must
• 1:48
  for
• 1:48
  their
• 1:48
  future
• 1:49
  store
• 1:49
  experience.
• 1:50
  Is
• 1:50
  it
• 1:50
  exactly
• 1:51
  how
• 1:51
  they
• 1:52
  were
• 1:52
  doing
• 1:52
  it
• 1:52
  now?
• 1:53
  No,
• 1:53
  clearly
• 1:54
  not.
• 1:54
  But
• 1:55
  I
• 1:55
  still
• 1:55
  think
• 1:55
  that
• 1:56
  a
• 1:56
  mobile
• 1:56
  pickup
• 1:57
  only
• 1:57
  experience
• 1:58
  has
• 1:59
  to
• 1:59
  be
• 1:59
  part
• 2:00
  of
• 2:00
  the
• 2:00
  future
• 2:00
  coffee
• 2:01
  house
• 2:02
  experience
• 2:02
  because
• 2:03
  not
• 2:03
  everyone
• 2:03
  needs
• 2:04
  coffee
• 2:04
  plus
• 2:05
  vibes.
• 2:05
  Okay?
• 2:05
  They
• 2:06
  want
• 2:06
  to
• 2:06
  just
• 2:06
  get
• 2:07
  their
• 2:07
  coffee
• 2:07
  as
• 2:08
  quickly
• 2:08
  as
• 2:08
  possible
• 2:09
  in
• 2:09
  under
• 2:09
  four
• 2:09
  minutes
• 2:10
  like
• 2:10
  Brian
• 2:11
  Nicol
• 2:11
  promised.
• 2:12
  So
• 2:12
  my
• 2:13
  question
• 2:13
  is
• 2:13
  how
• 2:13
  do
• 2:13
  they
• 2:14
  continue
• 2:14
  to
• 2:15
  to
• 2:15
  refine
• 2:15
  operations
• 2:16
  so
• 2:16
  that
• 2:16
  they
• 2:16
  can
• 2:17
  give
• 2:17
  their
• 2:17
  customers
• 2:18
  the
• 2:18
  best
• 2:19
  of
• 2:19
  both
• 2:19
  worlds
• 2:19
  and
• 2:20
  as
• 2:20
  many
• 2:21
  options
• 2:21
  as
• 2:21
  possible.
• 2:22
  But
• 2:22
  where
• 2:23
  do
• 2:23
  you
• 2:23
  land
• 2:24
  on
• 2:26
  removal
• 2:26
  of
• 2:26
  these
• 2:27
  pickup
• 2:27
  only
• 2:27
  stores?
• 2:28
  I
• 2:28
  know
• 2:28
  you
• 2:28
  want
• 2:28
  your
• 2:28
  coffeehouse
• 2:29
  vibes,
• 2:29
  Chris.
• 2:30
  Yeah,
• 2:30
  well,
• 2:30
  no,
• 2:30
  I
• 2:31
  don't
• 2:31
  know.
• 2:31
  I
• 2:31
  mean,
• 2:31
  I
• 2:32
  love
• 2:32
  that
• 2:32
  you
• 2:32
  called
• 2:32
  out
• 2:33
  the
• 2:33
  vibe
• 2:33
  thing
• 2:33
  because
• 2:34
  we
• 2:34
  Went
• 2:34
  to
• 2:35
  the
• 2:35
  Penn
• 2:35
  Station
• 2:35
  store
• 2:36
  like
• 2:36
  five
• 2:36
  years
• 2:37
  ago
• 2:37
  and
• 2:38
  I
• 2:38
  thought
• 2:38
  that
• 2:39
  felt
• 2:39
  really
• 2:39
  vibey
• 2:40
  with
• 2:40
  Starbucks.
• 2:41
  I
• 2:41
  actually
• 2:41
  loved
• 2:41
  it.
• 2:42
  I
• 2:42
  thought
• 2:42
  the
• 2:42
  guy
• 2:42
  was
• 2:43
  great,
• 2:43
  that
• 2:43
  gave
• 2:43
  me
• 2:43
  my
• 2:44
  order.
• 2:44
  It
• 2:44
  totally
• 2:44
  had
• 2:45
  a
• 2:45
  Starbucks
• 2:45
  vibe,
• 2:45
  it
• 2:45
  had
• 2:46
  a
• 2:46
  friendly
• 2:46
  vibe.
• 2:46
  So,
• 2:47
  so
• 2:47
  I
• 2:47
  disagree
• 2:48
  with
• 2:48
  that
• 2:48
  being
• 2:48
  the
• 2:48
  motivation.
• 2:49
  But
• 2:50
  I
• 2:50
  think
• 2:51
  I,
• 2:51
  I
• 2:51
  agree
• 2:52
  with
• 2:52
  this
• 2:52
  move
• 2:53
  but
• 2:53
  I
• 2:54
  with
• 2:54
  a
• 2:54
  big
• 2:54
  caveat
• 2:55
  in
• 2:55
  the
• 2:55
  short
• 2:56
  term
• 2:56
  because
• 2:57
  I
• 2:57
  think
• 2:57
  what
• 2:57
  he's
• 2:58
  doing
• 2:58
  here
• 2:58
  is
• 2:58
  you
• 2:58
  have
• 2:58
  to
• 2:59
  strip.
• 2:59
  I
• 2:59
  think
• 2:59
  he's
• 2:59
  just
• 3:00
  stripping
• 3:00
  everything
• 3:00
  back
• 3:00
  to
• 3:01
  the
• 3:01
  base.
• 3:01
  He's
• 3:01
  just
• 3:01
  like
• 3:02
  let's
• 3:02
  strip
• 3:02
  it
• 3:02
  all
• 3:02
  away
• 3:03
  and
• 3:03
  let's
• 3:03
  start
• 3:04
  over,
• 3:04
  let's
• 3:04
  start
• 3:04
  fresh.
• 3:05
  That's
• 3:05
  what
• 3:05
  he's
• 3:06
  doing
• 3:06
  across
• 3:06
  the
• 3:06
  board.
• 3:07
  Because
• 3:07
  for
• 3:08
  long
• 3:08
  run
• 3:08
  to
• 3:08
  Starbucks,
• 3:09
  for
• 3:09
  in
• 3:09
  the
• 3:10
  long
• 3:10
  run
• 3:10
  for
• 3:10
  Starbucks
• 3:11
  to
• 3:11
  survive
• 3:11
  and
• 3:11
  you
• 3:11
  and
• 3:12
  I
• 3:12
  have
• 3:12
  disagreed
• 3:12
  on
• 3:12
  this,
• 3:13
  it
• 3:14
  has
• 3:14
  to
• 3:14
  become
• 3:14
  more
• 3:14
  than
• 3:15
  just
• 3:15
  a
• 3:15
  place
• 3:15
  to
• 3:15
  get
• 3:15
  your
• 3:16
  coffee
• 3:16
  quickly
• 3:16
  and
• 3:17
  impersonately.
• 3:17
  At
• 3:18
  least
• 3:18
  that's
• 3:18
  what
• 3:18
  Nickel
• 3:19
  thinks
• 3:19
  and
• 3:19
  I
• 3:19
  happen
• 3:19
  to
• 3:19
  agree
• 3:20
  with
• 3:20
  him.
• 3:20
  However,
• 3:21
  with
• 3:21
  that
• 3:21
  said,
• 3:21
  I
• 3:21
  think
• 3:22
  you're
• 3:22
  hitting
• 3:22
  on
• 3:22
  the
• 3:22
  key
• 3:22
  point
• 3:23
  here
• 3:23
  is
• 3:24
  I
• 3:24
  do
• 3:24
  predict
• 3:25
  in
• 3:25
  the
• 3:25
  future
• 3:26
  that
• 3:26
  we're
• 3:26
  going
• 3:26
  to
• 3:27
  see
• 3:27
  this
• 3:27
  type
• 3:27
  of
• 3:27
  concept
• 3:28
  again,
• 3:29
  but
• 3:29
  either
• 3:29
  in
• 3:30
  a
• 3:30
  way
• 3:30
  that
• 3:30
  is
• 3:30
  more
• 3:30
  strategically
• 3:31
  located
• 3:32
  or
• 3:32
  in
• 3:33
  a
• 3:33
  new
• 3:33
  iteration
• 3:34
  of
• 3:34
  it,
• 3:34
  possibly
• 3:35
  alongside
• 3:36
  what
• 3:36
  he's
• 3:36
  calling
• 3:36
  his
• 3:37
  coffee
• 3:37
  house
• 3:38
  of
• 3:38
  the
• 3:38
  future.
• 3:39
  Because
• 3:39
  Starbucks
• 3:40
  still
• 3:40
  needs
• 3:40
  to
• 3:40
  figure
• 3:41
  out
• 3:41
  the
• 3:41
  capacity
• 3:42
  issue
• 3:42
  for
• 3:42
  ordering
• 3:43
  and
• 3:43
  queuing.
• 3:43
  So
• 3:44
  I
• 3:44
  think
• 3:44
  we're
• 3:44
  going
• 3:44
  to
• 3:45
  see
• 3:45
  this
• 3:45
  in
• 3:45
  some
• 3:45
  way,
• 3:45
  shape
• 3:46
  or
• 3:46
  form
• 3:46
  in
• 3:46
  the
• 3:47
  future.
• 3:47
  But
• 3:48
  we
• 3:48
  won't
• 3:48
  know
• 3:48
  until
• 3:49
  we
• 3:49
  see
• 3:49
  what
• 3:49
  that
• 3:49
  prototype
• 3:50
  is.
• 3:50
  And
• 3:50
  that's
• 3:51
  going
• 3:51
  to
• 3:51
  take
• 3:51
  a
• 3:51
  hell
• 3:52
  of
• 3:52
  a
• 3:52
  long
• 3:52
  time
• 3:52
  to
• 3:53
  re
• 3:53
  engineer
• 3:53
  the
• 3:53
  Starbucks
• 3:54
  store
• 3:54
  base
• 3:54
  to
• 3:55
  do
• 3:55
  that.
• 3:55
  So
• 3:55
  I
• 3:55
  still
• 3:55
  think
• 3:56
  we'll
• 3:56
  potentially
• 3:57
  see
• 3:57
  these
• 3:57
  stores
• 3:58
  start
• 3:58
  to
• 3:58
  exist
• 3:58
  in
• 3:58
  some
• 3:59
  variety
• 3:59
  but
• 3:59
  with
• 4:00
  an
• 4:00
  enhanced
• 4:01
  marketing
• 4:02
  vibe,
• 4:02
  so
• 4:02
  to
• 4:03
  speak,
• 4:03
  when
• 4:03
  they
• 4:03
  do
• 4:03
  come
• 4:04
  back
• 4:04
  and
• 4:04
  roll
• 4:04
  out
• 4:04
  down
• 4:05
  the
• 4:05
  road.
• 4:05
  That's
• 4:05
  my
• 4:06
  prediction.
• 4:07
  Unbelievable.
• 4:08
  I
• 4:08
  just
• 4:09
  like
• 4:09
  picture
• 4:09
  Brian
• 4:10
  Nicholl
• 4:10
  in
• 4:10
  his
• 4:10
  brand
• 4:10
  new
• 4:11
  office
• 4:11
  in
• 4:12
  Newport
• 4:13
  beach
• 4:13
  with
• 4:13
  his
• 4:13
  good
• 4:13
  Vibes
• 4:14
  only
• 4:14
  T
• 4:14
  shirt
• 4:15
  and
• 4:17
  trying
• 4:17
  to
• 4:17
  look
• 4:17
  out
• 4:18
  at
• 4:18
  the
• 4:18
  ocean
• 4:18
  and
• 4:18
  figure
• 4:19
  out
• 4:19
  what
• 4:19
  this
• 4:19
  new
• 4:20
  concept
• 4:20
  looks
• 4:21
  like.
• 4:21
  It
• 4:21
  sounds
• 4:21
  very
• 4:21
  peaceful
• 4:22
  and
• 4:22
  relaxing.
• 4:23
  I'm
• 4:23
  very
• 4:23
  envious.