Starbucks will close or convert up to 80 pickup-only stores nationwide by 2026, ending a six-year experiment aimed at tech-focused customers. The move targets urban markets like downtown San Francisco, Half Moon Bay, and Gilroy, where these grab-and-go stores launched in 2019 to serve professionals and Gen Z with rapid mobile orders.
Built without seating or cash registers, the model prioritized efficiency but struggled to deliver the customer experience Starbucks now aims to revive. The pickup-only format, designed for dense cities and transit hubs, saw sales slump at stores open over a year for six straight quarters.
Starbucks’ efficiency-focused pickup stores, lacking seating and registers, saw six straight quarters of sales decline as customer experience failed to resonate.
CEO Brian Niccol, who took charge in September 2024, called the concept “overly transactional,” citing complaints about cold, impersonal service. Customers reportedly grew tired of competing venues offering similar speed but lacking warmth, pushing Starbucks to refocus on community spaces blending digital ease with human hospitality.
The company is also evaluating its North American portfolio this fiscal year to prioritize locations that better balance speed and welcoming atmospheres. Despite the closures, mobile orders still drive 31% of sales. The company plans to renovate existing stores and train workers under a $500 million “Green Apron Service” program to improve in-person interactions. Revamped barista uniforms and customer-focused training protocols emphasize warm hospitality to bridge the gap between speed and personalized service.
App upgrades and rewards tweaks will support hybrid models merging tech convenience with traditional café atmospheres. Niccol emphasized keeping digital tools but embedding them in stores where baristas can build connections.
Broader retail shifts also played a role. Rivals leaned into hospitality-driven formats, pressuring Starbucks to balance speed with its identity as a “third place” for socializing.
Post-pandemic trends pushed consumers toward slower, more engaging experiences—a shift clashing with the sterile efficiency of pickup-only spots. Niccol called the closures a “realignment,” not a retreat.
Urban markets will still see new stores, but ones emphasizing lounge areas and barista engagement. The company aims to balance its 16,000 U.S. locations between drive-thrus, cafés, and mixed formats.
“People want convenience without losing the heart of what Starbucks is,” he said, framing the changes as a return to the brand’s roots. The last pickup-only stores will shutter or convert by late 2026.
