Starbucks’ New Boss Is Banking on "Mug Hugs" to Get Customers to Hang Around Longer



As Brian Niccol orchestrates the turnaround of Starbucks, one thing he wants to see is customers enjoying a “mug hug.” The new CEO says he wants to “elevate the café experience” for customers who want to sit in-store and do so without being bothered by lines of people waiting for their orders. Mobile and app orders have become something of an Achilles’ heel for Starbucks, with stores simultaneously overwhelmed with orders and customers abandoning purchases before payment because of long lines. Niccol introduced a pilot program using new algorithms to address the bottlenecks of demand, freeing up baristas for “moments of connection” with customers both coming into stores and picking up their to-go drinks. It seems that a significant part of this experience hinges on the mugs themselves, with Niccol saying they are reintroducing ceramic mugs to better facilitate the stores being a friendly, relaxed, community coffeehouse, encouraging customers to stay in the store longer. Niccol has also made tweaks to improve customer experience, such as not charging for nondairy alternatives and reintroducing condiment bars so visitors can customize their own drinks. He has also reversed the open-door policy in bathrooms, a decision that was previously made to discourage freeloaders who would pop in to use the facilities. Free refills are also back on the menu, as is the fan favorite — handwritten names on the cups.