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Starbucks Phases Out Pick Up-Only Stores to Revive Café Ambience

CEO Brian Niccol is redirecting investments toward store upgrades through a $500 million hospitality initiative to restore warmth and community ties

Starbucks is ending its pickup-only store concept, including at this location in Seattle near the Space Needle. (GeekWire Photos / Taylor Soper)
A Starbucks sign displayed at a coffeehouse inside Jacksonville International Airport in Jacksonville, Fla. on Dec. 12, 2024.
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Overview

  • Starbucks will close or convert about 80 to 90 mobile order-only Pick Up locations across more than 20 states by the end of fiscal 2026.
  • Brian Niccol said the Pick Up format proved “overly transactional” and undercut the human connection central to the brand.
  • Mobile ordering will remain critical, accounting for 31% of transactions, with major app and Starbucks Rewards enhancements planned for 2026.
  • The company has committed $500 million to its Green Apron Service initiative and will invest $150,000 per store on seating, lighting and atmosphere improvements.
  • This phase-out is a key element of Niccol’s Back to Starbucks turnaround, aimed at reversing six consecutive quarters of same-store sales declines.