Seattle: Starbucks has announced it will phase out its Starbucks pickup‑only stores, citing a lack of warmth and human engagement that defines the brand.
These compact, mobile order–only outlets, about 90 in the US, were introduced to offer a quick, transactional experience. However, CEO Brian Niccol has stressed that this model does not deliver the welcoming atmosphere Starbucks customers expect.
The US pickup‑only format accounted for nearly one-third of transactions via mobile ordering, which the company will continue to support through its traditional cafes.
The operational model contributed to a 2 percent decline in same-store sales in the US during the latest quarter; net income dropped 47 percent to $ 558 million, a performance that fell short of Wall Street’s expectations.
Under the ‘Back to Starbucks’ initiative, the chain is emphasizing cafes with seating, face-to-face interaction, and fast-service standards (drinks delivered in four minutes or less).
Some existing pickup‑only stores are expected to be converted into full-service venues that include both seating and the ability to order from the app.
Since its first pickup-only launch in New York City in 2019, Starbucks has expanded this format across US urban hubs. Now the shift marks a strategic reversal, one that includes revitalizing at least 1,000 US cafes by the end of next year, restoring seating that had been removed and scaling back on automation.
Niccol has reaffirmed Starbucks’ commitment to hiring more baristas and enhancing in-store experience, while de-emphasizing fully automated systems. The chain continues to operate more than 41,000 stores globally. Following the announcement, its US -listed shares gained over 4.5 percent in after‑hours trading.
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