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9h ago

Starbucks Phases Out Pick Up Stores as It Reclaims Its Coffeehouse Identity

Niccol plans to shutter or convert roughly 80–90 mobile-only outlets by fiscal 2026 under a strategy that blends digital ease with in-store hospitality.

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.
Does Gen Z want the human touch?

Overview

  • The company confirmed it will close or convert about 80–90 Pick Up stores by the end of fiscal 2026 following six quarters of same-store sales declines.
  • CEO Brian Niccol said the mobile-only format proved overly transactional and lacked the warmth and human connection central to the brand.
  • Mobile ordering will remain integral, accounting for roughly 31% of transactions, and will be supported within redesigned full-service cafés.
  • Under the “Back to Starbucks” initiative, Starbucks is investing around $150,000 per store to upgrade seating, lighting and ambiance across at least 1,000 locations.
  • New small-format and drive-thru prototypes are being piloted to merge quick service with communal, barista-led experiences.