Air travelers face numerous challenges on their journeys: slow security lines, long waits at lounges, the threat of delays or cancellations — and, of course, the airport Starbucks.
Many travelers, flight crews, and even airport employees have experienced lengthy waits for their favorite Starbucks drinks, from cappuccinos to cold brews to egg bites.
“They need to have a better system,” said Coresa Barrino, a Starbucks customer at New York’s LaGuardia Airport Terminal B earlier this month. She had been waiting for 10 minutes for her coffee. Barrino, a nursing assistant flying back to Charlotte, North Carolina, mentioned that her Starbucks experience at home typically involves just a two-minute wait.
The issue of long waits has drawn attention from Starbucks’ new CEO, Brian Niccol, who took the reins in September after joining from Chipotle. Niccol has emphasized his commitment to reviving the company’s fortunes and improving customer experience.
Niccol recently shared his vision with investors, suggesting that licensed locations — such as those inside airports or Target stores — should follow the company’s strategy of “getting back to Starbucks.”
“When I think about airports, there’s such a huge opportunity for us to simplify some of the execution there to improve throughput, so customers can get their drinks and move on,” he said during the company’s quarterly conference call on Oct. 30.
Starbucks’ airport staff and technology will face a critical test during the busiest travel days of the year. The Transportation Security Administration expects record numbers of passengers over Thanksgiving week, with Sunday, Dec. 1, projected to be the busiest day, as more than 3 million travelers pass through U.S. airports.
The surge in travel, particularly during peak periods like Thanksgiving, has led to congestion not only in airport security and lounges but also in dining areas. For the aviation industry, long Starbucks lines are just another symptom of overcrowded airports and increased demand.
In 2023, over 1.05 billion passengers boarded flights at U.S. airports, surpassing the pre-pandemic numbers from 2019, according to the U.S. Department of Transportation.
Starbucks’ Struggles and New Strategies
Starbucks has faced challenges in recent months. Its sales dropped for the third consecutive quarter in the period ending Sept. 30, as customers reacted to price hikes and turned away from efforts to lure them back with discounts and energy drinks. Same-store sales in the U.S. fell 6% year-over-year.
In response, Niccol has outlined several initiatives to improve customer experiences and rejuvenate sales. These include the return of condiment bars, eliminating dairy alternative surcharges, and simplifying the menu. A key goal is to reduce service time to just four minutes, which would alleviate long lines and enhance the customer experience.
While Starbucks began rolling out mobile ordering and payment options at airport locations in 2022, this has sometimes created more chaos at the counter. Not all travelers are regular Starbucks customers, and not all are familiar with the app.
Improving Starbucks’ airport operations could boost both sales and the brand’s reputation, especially during a time when it needs to rebuild customer loyalty. Even those who have stopped visiting Starbucks regularly might find themselves grabbing a coffee at the airport.
As air travel surges post-pandemic, it offers Starbucks and other food chains an opportunity to increase sales. Concessions account for about 4% of U.S. airport revenue annually, according to the latest Federal Aviation Administration data, and food and beverage offerings are vital to passengers with limited time before flights.
At Dallas Fort Worth International Airport, food and beverage revenue is growing faster than passenger numbers, said Jennifer Simkins, the airport’s assistant vice president of concessions. The airport, now the world’s third-busiest for passenger traffic, up from 10th place in 2019, is seeing increased demand, with airlines packing more seats on planes and flying larger aircraft.
More passengers means more crowded restaurants, especially during peak hours, said Ursula Cassinerio, assistant vice president at Moody’s Ratings, who tracks airports. She noted that many airports are undergoing renovations or building new terminals, creating more opportunities for revenue through expanded retail and dining options.
The Licensing Model and Its Challenges
One of the challenges Starbucks faces in airports is its licensing model. Unlike company-owned stores, Starbucks’ airport locations are typically run by licensees.
Starbucks opened its first airport café in 1991 with licensee HMSHost at Seattle-Tacoma International Airport. Over the years, the relationship expanded, with HMSHost running roughly 400 Starbucks locations by 2020, when the deal ended. Since then, other operators like Paradies Lagardere and OTG have joined the mix.
While licensing saves Starbucks from the operational headaches of running airports — such as staffing issues, high rents, and security checks — it also means the company earns less from these locations. For example, Starbucks collects a percentage of sales and licensing fees, but company-owned stores are much more profitable.
With more than 16,300 locations in the U.S., only about 60% are directly operated by Starbucks; the rest are licensed. The company has a significant presence in the 47 busiest U.S. airports, though it did not disclose its exact airport store count.
In fiscal 2024, licensed locations accounted for 12% of Starbucks’ revenue, totaling $4.51 billion. For every dollar spent in a licensed store, Starbucks earns roughly 7 cents, compared to 23 cents per dollar from company-owned stores.
Technology and Innovation in Airport Dining
Many airports have been adopting technology to streamline restaurant operations, such as digital kiosks and ordering platforms. Labor shortages have prompted restaurants to rely more on self-service options, such as tablets, to speed up service.
In Tampa International Airport, travelers can now order food ahead through Uber Eats and pick it up at the restaurant. Dallas Fort Worth has its DFWOrderNow platform, where travelers can pre-order food. Starbucks directs customers to its own platform to ensure consistency and familiarity.
Airports are also experimenting with robotics and meal bundles to speed up service and improve efficiency. For example, a local coffee company, Ampersand, is launching a robotic barista at DFW, catering to off-hour flight crews.
Even with these innovations, popular brands like Starbucks continue to attract long lines.
For Barrino at LaGuardia, waiting for her coffee is worth it. “I just really love the brand,” she said.
