As Starbucks bins 'overly transactional' grab and go stores, Luckin Coffee in China doubles down on them

Starbucks this week said it would phase out its mobile order and pickup only outlets. CEO Brian Niccol commented: “We found this format to be overly transactional and lacking the warmth and human connection that defines our brand.”

The retailer has around 90 of these stores in the US that have no seating for customers. The move will not affect its mobile ordering service, which accounts for almost a third of transactions.

“They’re now redesigning the “coffeehouse of the future” - with 32 seats, a drive-thru, and $500 million invested into training and staffing across US stores. It’s a return to emotional branding, atmosphere, and human centred service,” observes Darko Pavic, Owner of Fiscal Solutions.

But while Starbucks is moving away from the grab and go format, Luckin Coffee in China is doubling down on it, with a focus on: No seats. No baristas. Fully app-based. AI driven fulfillment. Pick up in under two minutes.

“The numbers work - Luckin has already surpassed Starbucks in number of outlets in China,” says Pavic. “This contrast is fascinating: Starbucks = warmth, place, brand identity; Luckin = speed, tech, efficiency. Both are successful. But they appeal to completely different consumer needs - and build completely different infrastructures to do so.”

He adds: “As someone who works at the intersection of retail technology, compliance, and consumer experience, this is a masterclass in how store format reflects business strategy.”

“Retailers today must ask themselves: Are you creating a transactional system or an emotional connection?; Can you make compliance and technology part of your competitive advantage - not just a cost?; What’s your store really optimised for? And maybe most importantly: Are you building for your customer, or just following someone else’s blueprint?”

2025 RTIH INNOVATION AWARDS

Mobile retail will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.