Starbucks’ New CEO Aims to Balance Mobile Orders with In-Store Experience

Starbucks’ new CEO, Brian Niccol, is focused on transforming the coffee giant into a classic coffeehouse, but faces a unique challenge: the company’s mobile orders are as disruptive as they are popular. “They come in flooding faster than our customer can get there,” Niccol said during a call with investors. He highlighted that baristas’ rush to handle these orders impacts their ability to provide a more personal touch to in-store customers.

Niccol emphasized mobile ordering as a bottleneck multiple times during the call. The company, which reported a smaller-than-expected drop in comparable sales, plans to address this issue by sequencing mobile orders with the help of an algorithm to improve efficiency behind the counter. This approach contrasts with Niccol’s previous role at Chipotle, where he successfully increased mobile order awareness and usage.

Starbucks introduced mobile ordering in 2015, and its popularity surged. However, under Niccol’s predecessor, mobile orders became a priority, driven by the company’s rewards program. In contrast, Niccol aims to return Starbucks to its roots, emphasizing comfortable seating, ceramic mugs, and personalized interactions with baristas. The influx of mobile orders, however, stands in contrast to this vision.

To mitigate the impact of mobile orders, Starbucks is piloting an in-store prioritization algorithm. This algorithm will sequence mobile orders away from the current first-come, first-served basis, smoothing out rushes and allowing teams to provide better connections for both in-cafe and mobile order customers. Niccol, who joined Starbucks as CEO in September 2024, was awarded compensation of nearly $96 million in 2024, making him one of the highest-paid executives in corporate America.