A Burnt Taste

How did Starbucks, once а shining beacon of progressive business practices, torch its reservoir of goodwill?

- By Clint Rainey

IN MIDTOWN MANHATTAN, ON THE GROUND FLOOR OF AN OFFICE BUILDING, THERE'S A COFFEE SHOP THAT'S EASY MISS.

When you walk in, there's no menu, just a metal riser supporting drinks waiting to be picked up, and in back, some plush banquettes and tables. Display cases are stocked with tidy packs of sushi and sandwiches, and shelves feature gas-station staples like Red Bull and Kettle chips. To access any of this, you have to pass through a turnstile that scans your palm and logs in to your Amazon account. The coffee and food can be paid for without uttering a word to anybody. A sign by the door suggests, Start with the apps.

Marketed as “a completely different Starbucks built on effortless convenience” when it opened last November, this store-called Starbucks Pickup with Amazon Go-is the first of three that the coffee company plans to debut in New York. It is also a striking symbol of Starbucks's quiet brand transformation from warm gathering spot to tech-enabled caffeine depot and of the challenges the company faces today. Starbucks clearly recognizes that it's at an inflection point: The company announced in March that its CEO of five years, Kevin Johnson, was stepping down. (Starbucks's stock rose 7% on the news.)