Why Michigan Starbucks Locations Are Making a Big Change

While I am not a huge coffee drinker, most Americans are. According to the National Coffee Association, a whopping 67% of American adults had coffee in the past day, more than any other beverage, including tap or bottled water. Starbucks has long benefitted from America's reliance on coffee

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But this year, coffee drinkers have finally put their feet down. and declared they are sick of Starbucks' pricey food and drinks, and their sales are showing it.  Two straight quarters of declining sales have caused Starbucks' CEO to announce that stores here in Michigan will change.

Coffee Withdrawals

Since the pandemic, Starbucks has taken a major turn in the way its stores function. Pre-pandemic stores saw plenty of people sitting, working, or meeting with friends inside the stores. However, Starbucks has since taken a new approach, with many stores ditching the sitting areas and focusing on take-out orders.

70% of Starbucks sales take place inside its app or the drive-thru. The Starbucks store attached to Studio Park in Downtown Grand Rapids is a first-of-its-kind "Pickup" store that has no seating and ordering takes place exclusively through the app. The building is a perfect example of where the company's priorities lie.

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However, if you ask new Starbucks CEO Brian Niccol, this emphasis on the app and quick pick-ups is what is leading to their sales declining, and he intends to return the stores to their "coffee shop" roots.

“There’s a shared sense that we have drifted from our core...we’re committed to elevating the in-store experience — ensuring our spaces reflect the sights, smells and sounds that define Starbucks.”

If Niccol's plans are to be believed, then Michigan should expect more places to sit to return to their Starbucks locations, which have seen many of their tables and couches removed to make room for more pick-up/app orders. Niccol believes that small local coffee shops have been able to thrive since Starbucks transitioned from being a "3rd place" and he wants those customers back.

How Michigan's Starbucks could change remains to be seen, but Starbucks will be making some kind of change soon and its only a matter of time.