Starbucks intends to close all of its pick-up-exclusive stores
Starbucks has announced that it will be closing approximately 80 to 90 of its pick-up-only stores nationwide by the end of 2026. This decision is part of CEO Brian Niccol's strategy to revitalize the brand by restoring in-store experiences and emphasizing human connection over the overly transactional grab-and-go model.
These pick-up-only locations, primarily situated in urban centers, airports, and hospitals, will either be closed or converted to traditional stores to better align with the refreshed Starbucks coffeehouse portfolio aimed at improving customer engagement and profitability. The shift responds to declining traffic and sales, as customers express fatigue with impersonal, tech-driven transactions.
A Departure from the Past
Over the last six years, Starbucks has opened approximately 90 pick-up locations. These locations typically feature only a pick-up counter or window, and no seating. Some locations offered very limited seating options. The pick-up-only stores were designed primarily for picking up mobile orders. Customers can place orders through the mobile app and pick them up at these stores.
The new Starbucks store prototype, as explained by Niccol, is a departure from the pick-up-only stores. The new stores are intended to deliver an exceptional customer experience, improve unit economics, and unlock growth opportunities in more markets. The new Starbucks stores in New York City will have seating for 10 customers, indicating a shift towards traditional Starbucks store amenities.
Focus on Experience and Profitability
The new Starbucks store prototype is designed to improve the customer experience and financial performance, suggesting a focus on enhancing both aspects of the business. Niccol, who became CEO in September 2024, is planning to build a "small format version" of Starbucks stores with seating for 10 customers in New York City.
The announcement of the new Starbucks store prototype was made during an earnings call on Tuesday. The timeline for the closure of pick-up-only Starbucks locations has not been disclosed. The new prototype Starbucks stores are intended to deliver growth opportunities in more markets, suggesting a potential expansion of the company.
In summary, about 80 to 90 Starbucks pick-up-only stores will close or convert by the end of 2026 as part of a strategic pivot toward more traditional, experience-focused locations. This decision is part of Niccol's efforts to rebuild the coffeehouse atmosphere that the chain was originally known for, as the pick-up-only locations deviated from that vision.
In the revitalization plan by CEO Brian Niccol, the 80 to 90 Starbucks pick-up-only stores are either closing or converting to traditional outlets, reflecting a shift from the impersonal, finance-driven transactional model to one prioritizing industry experience and human connection. The new Starbucks stores, featuring seating and designed to enhance customer experience, are expected to boost profitability, signifying a focus on both retail and business growth objectives.
