• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

New

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

Watch Fortune Daily, our new video show that brings you inside the Fortune newsroom and the boardroom

RetailStarbucks

Starbucks’ new boss is banking on ‘mug hugs’ to get customers to hang around longer

Eleanor Pringle
By
Eleanor Pringle
Eleanor Pringle
Senior Reporter, Economics and Markets
Down Arrow Button Icon
Eleanor Pringle
By
Eleanor Pringle
Eleanor Pringle
Senior Reporter, Economics and Markets
Down Arrow Button Icon
January 29, 2025, 6:19 AM ET
Starbucks CEO Brian Niccol
The new CEO at Starbucks, Brian Niccol, is hoping “mug hugs” will keep customers in store for longer. Robin Marchant—Getty Images
Add Fortune on Google for similar content.
  • Brian Niccol, the new CEO of Starbucks, has identified mugs as an integral part of his turnaround plan.

As Brian Niccol orchestrates the turnaround of Starbucks, one thing he wants to see is customers enjoying a “mug hug.”

Niccol coined the phrase on the coffee giant’s earnings call this week, where results beat Wall Street expectations, as Starbucks revealed Q1 revenue of $9.4 billion versus the $9.31 billion expected.

The new CEO told analysts on the call Tuesday that he wanted to “elevate the café experience” for customers who wanted to sit in-store—doing so without being bothered by queues of people waiting for their click-and-collect 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 queues.

Niccol said he had introduced a pilot program using new algorithms to address these “bottlenecks” of demand, freeing up baristas for “moments of connection” with customers both coming into stores and picking up their to-go drinks.

“I swung by one of our stores with this pilot, and there was no congestion at the counter,” Niccol added. “And what was also really nice is the in-café customer … We call it a mug hug … They’re like holding on to that ceramic mug, and they’re enjoying their moment in the café, and there’s not all this congestion surrounding the counter.

“So it’s just a much more pleasant, peaceful coffee experience.”

It seems a significant part of this experience hinges on the mugs themselves—or crockery more widely—with Niccol mentioning ceramics three times on the call.

The man paid a $5 million signing bonus on the four-week anniversary of his appointment doubled down: “We reintroduced ceramic mugs and handwritten notes on cups to better connect with customers and elevate the café experience for those who choose to stay and work.”

Establishing—or according to Niccol, reestablishing—Starbucks as a friendly, relaxed “community coffeehouse” ultimately encourages customers to stay in store longer.

“It’s really amazing to see just how the whole vibe of the coffeehouse just kind of calms down, and you can kind of settle in,” Niccol said. “And … the ceramic mugs and glasses and plates just add another level of like, ‘Hey, this is a spot where I can slow down, take a minute, whether I’m connecting with others or just taking a minute for myself,’ this is what occurs.”

Revamping the Starbucks vibe

While Niccol reintroducing reusable china may seem like a minor tweak in the context of issues facing Starbucks (global store sales are down 4%, and earnings per share fell 23%), it plays to the wider turnaround of the brand.

In centering Starbucks coffeehouses as a place for community, 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.

In a bid to reduce store congestion, Niccol has also reversed a popular open-door policy in bathrooms.

The decision to ban freeloaders who would pop in to use the facilities without purchasing anything has been controversial—so much so that the coffee giant has had to train staff on how to de-escalate confrontations with irate individuals.

But sweeteners are being introduced—or reintroduced—for customers.

Free refills, for example, are back on the menu, as is the fan favorite of handwritten names and messages on cups.

Fortune Daily breaks the traditional barrier between audience and newsroom. The show transforms Fortune’s trusted reporting into actionable, conversational, and entertaining insights for an emerging class of business leaders. Watch here.
About the Author
Eleanor Pringle
By Eleanor PringleSenior Reporter, Economics and Markets
LinkedIn icon

Eleanor Pringle is an award-winning senior reporter at Fortune covering news, the economy, and personal finance. Eleanor previously worked as a business correspondent and news editor in regional news in the U.K. She completed her journalism training with the Press Association after earning a degree from the University of East Anglia.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Retail

McDonald’s CEO turns to a trusted lieutenant with a turnaround record to revive its biggest market
C-Suitechief executive officer (CEO)
McDonald’s CEO turns to a trusted lieutenant with a turnaround record to revive its biggest market
By Phil WahbaAugust 4, 2026
3 hours ago
Cloudflare just launched a permanent ID tool and wallet for AI shopping
AICloudFlare
Cloudflare just launched a permanent ID tool and wallet for AI shopping
By Jeff John RobertsAugust 4, 2026
9 hours ago
m
Retailearnings
McDonald’s U.S. sales growth stalls to 0.8% as gas prices bite
By Michelle Chapman and The Associated PressAugust 4, 2026
10 hours ago
The Porsche Design Tower in Sunny Isles Beach, Florida.
Real EstateLuxury
From Porsche penthouses to Nobu lofts: Inside the $67 billion boom in luxury branded residences
By Zahra TayebAugust 4, 2026
15 hours ago
Photo of Christopher Nolan
Arts & Entertainmentimax
‘A hidden gem’: Odyssey fans are shelling out up to $2,000 to buy 70mm IMAX tickets on eBay
By Sarah GlodekAugust 3, 2026
1 day ago
Tommy Bahama CEO Doug Wood
RetailFashion
Go ahead, make fun of Tommy Bahama. The CEO is happy to join you, and he’s probably not a fan of your preppy shorts
By Catherina GioinoAugust 3, 2026
1 day ago

Most Popular

How Zohran Mamdani's pied-à-terre tax exposed an epidemic of 'ghost cars' instead
Personal Finance
How Zohran Mamdani's pied-à-terre tax exposed an epidemic of 'ghost cars' instead
By Catherina GioinoAugust 4, 2026
15 hours ago
Bars, bowling alleys, and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
North America
Bars, bowling alleys, and movie theaters cost too much to run and visit. Americans have run out of places to hang out and we're paying with our health
By Catherina GioinoAugust 2, 2026
3 days ago
Wall Street bulls are starting to admit the earnings bubble is real—and the 60/40 portfolio may be the first casualty
Investing
Wall Street bulls are starting to admit the earnings bubble is real—and the 60/40 portfolio may be the first casualty
By Nick LichtenbergAugust 3, 2026
1 day ago
Ray Dalio on the AI bubble nearing 1929, 2000 levels and the lesson people always forget: 'Wealth is not the same as money'
Investing
Ray Dalio on the AI bubble nearing 1929, 2000 levels and the lesson people always forget: 'Wealth is not the same as money'
By Nick LichtenbergAugust 4, 2026
15 hours ago
The Iran war already has a winner: The world’s largest shipbroker notching record earnings from the 'exceptional volatility' in the Strait of Hormuz
Energy
The Iran war already has a winner: The world’s largest shipbroker notching record earnings from the 'exceptional volatility' in the Strait of Hormuz
By Sasha RogelbergAugust 3, 2026
1 day ago
Electric air taxis are finally ready for takeoff
Magazine
Electric air taxis are finally ready for takeoff
By Alexei OreskovicAugust 3, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.