Starbucks doubles down on hospitality with 'Green Apron Service' strategy
Investment
CNBC

Starbucks doubles down on hospitality with 'Green Apron Service' strategy

July 29, 2025
01:14 PM
4 min read
AI Enhanced
investmentstocksconsumer discretionaryretailmarket cyclesseasonal analysismarket

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Investors will get the latest look into how Starbucks' push for more welcoming cafes is going when it reports earnings after the bell Tuesday.

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4 min read

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investment

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Published

July 29, 2025

01:14 PM

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CNBC

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investmentstocksconsumer discretionaryretailmarket cyclesseasonal analysismarket

The analysis indicates that From an analytical perspective, In this BUX your favorite stocksCREATE FREE ACCOUNTBarista Andy Acevado prepares a drink inside a Starbucks Corp

On the other hand, Coffee shop in New York

On the other hand, Blue | Bloomberg | Getty ImagesAs companies lean into value offerings and buzzy beverages to lure price-sensitive consumers, Starbucks is doubling down on its plans to get back to basics by leaning into hospitality at its cafes

The coffee giant aims to stand out on guest experience in a cutthroat consumer environment as it tries to boost lackluster sales, in this volatile climate

Furthermore, Last week, the company began training baristas on its new "Green An Service" gram as part of CEO Brian Niccol's "Back to Starbucks" plans, which have emphasized friendlier cafes and a human touch Sharpie drawings on cups

Additionally, However, Green An Service builds on that, relying on warm and engaging interactions with customers in the hopes of making Starbucks visits a habit

The gram is backed by changes to ensure per staffing and better nology to keep service times fast (this bears monitoring)

Market analysis shows was born out of growth in digital orders, which now make up over 30 percent of sales, and back from baristas

In contrast, "The strategy is to reconnect our partners with our customers," Chief Operating Officer Mike Grams told CNBC from a newly-revamped store in Seattle on Monday

When you walk through that door, you're greeted with a smile

You are greeted again at handoff, a perfect cup of coffee (an important development)

And you're met with that connection. "Investors will get another look into how Niccol's turnaround plans are working when the company reports earnings after market close Tuesday

Nevertheless, Starbucks s have climbed 2. 7% this year, trailing the 8. 6% gains of the S&P 500, as Wall Street debates how long it will take Niccol to imve the chain's performance

Additionally, Since Niccol took the reins last September, the stock is up just under 3%, and has climbed nearly 25% on a one-year basis, given the current landscape

Niccol is trying to jumpstart the coffee chain's sales

Last quarter, same-store sales fell for the fifth quarter in a row

Additionally, Grams and the push for more welcoming cafes will play a major role in that effort

Grams was appointed as chief operating officer in June, overseeing global coffeehouse development, the company's worldwide supply chain and its North American coffeehouses, given the current landscape

He came to Starbucks in February after nearly three decades at Taco Bell, where he was previously was the chain's president and global chief operating officer

Niccol was once Taco Bell's chief executive

The Green An Service push is the largest investment the company has ever made in hospitality and its store employees, Grams said, in this volatile climate

This leads to the conclusion that company did not vide a dollar figure for the investment

Part of the plan involves Smart Queue nology, which uses algorithms to enhance staffing and scheduling, to help baristas der more consistent and higher-quality service, Grams said

On the other hand, The data indicates that company wants customers to experience consistency in service quality whether they order in store or online. "You will see it show up in different ways," he said. "You may see a digital host out front who is navigating that experience, in light of current trends

It can be an extra person at the drive through

Additionally, Meanwhile, The idea is just really making sure that we've got the right partners in the right place at the right time throughout the entire day (quite telling). "Success of the Green An Service initiative will be tied directly to measurable indicators customer experience scores, foot traffic growth, and store ductivity, in today's market environment

Conversely, The effort also comes as cafes face new benchmarks for success, including dering customized drinks in four minutes or less (which is quite significant), given the current landscape

On the other hand, Early results from its 1,500-store pilot of Green An Service showed imvements in transactions, sales, and customer service times, with 80% of in-cafe orders meeting the chain's four-minute goal

Furthermore, Continuing to build on that trend will ly be key for Starbucks

Nevertheless, The reality is customers may prefer speed over warmth and have little tolerance for long waits (quite telling)

Grams said Starbucks has multiple avenues to remain competitive, including a strong digital, drive-thrus in more than 7,000 stores and cafes going through "uplifts" to make them more comfortable. "It's showing up in a way where we touch all three channels," he said of the hospitality initiative. "We have 20,000 units across North America, which gives us a terrific competitive advantage (remarkable data).