Starbucks wants to give you a “mug hug”
The word "mug" was said a record number of times on Starbs’ latest earnings call.
A vibe shift is underway at Starbucks, and so far investors seem into it.
Starbucks stock is up more than 8% after the company reported better-than-expected earnings on Tuesday in its first full quarter under the leadership of its new CEO, Brian Niccol. His vision for the ubiquitous corporate coffee chain is a more homey, relaxing coffeehouse where customers can lounge instead of just picking up.
Niccol has made a few changes to push that vision, including cutting the “overly complex” menu by 30%, bringing back condiment bars, free refills, and cutting the vegan-milk tax. It's also instituting a no-loitering policy that's meant to encourage paying customers to see Starbucks as a “third place” where they can sit down and relax instead of just picking up.
Perhaps most important, they're bringing back ceramic mugs.
Like the thing I was most excited about is, this morning, I swung by one of our stores with this pilot and there was no congestion at the counter. And what was also really nice is the in-cafe customer, I love this term we have around here, they ask for their for here cup, and they're like, we call it a mug hug, right? They're like holding on to that ceramic mug and they're enjoying their moment in the cafe, and there's not all this congestion surrounding the counter. So, it's just a much more pleasant, peaceful, coffee experience.
– Brian Niccol, CEO of Starbucks
The word “mug” was said four times in the company's Tuesday-afternoon earnings call, marking a record for the coffee giant.
