August 7, 2025 – Starbucks Company announced on Tuesday it will close all of its mobile-order pick up stores by fiscal year 2026, marking the end of a six-year experiment with grab-and-go locations that the company now considers “overly transactional” and disconnected from its brand identity.
CEO Brian Niccol Abandons Mobile-Only Format to Restore “Warmth and Human Connection”
The decision, revealed by Chairman and CEO Brian Niccol during the company’s third-quarter earnings call on July 29, affects approximately 96 Pick up locations across more than 20 states, including stores in major cities like New York and Houston and locations at airports and hospitals nationwide.
The End of an Era
“We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,” Niccol stated during the earnings call. The Pick Up concept, first launched in New York in 2019, was designed to cater to on-the-go customers who preferred the efficiency of mobile ordering over the traditional coffeehouse experience.
These locations, which range from simple exterior windows to small spaces without seating, were initially viewed as the future of fast coffee service. The coffee giant will convert or close approximately 80 to 90 of these mobile order-only locations nationwide by the end of 2026, though specific timelines for individual store closures have not been announced.
“Back to Starbucks” Strategy Takes Center Stage
The closure announcement is a cornerstone of Niccol’s “Back to Starbucks” campaign, which aims to restore the coffee chain’s identity as a welcoming “third place” between home and work—a concept that had been diminished in recent years as the company prioritized speed and convenience.
This strategy focuses on revitalizing Starbucks as a coffee shop, with the brand pushing to bring back an old-school in-store experience. This includes “the return of the condiment bar, writing on cups, more ceramic mugs, and a revised code of conduct,” according to Niccol.
Also Read:Â Finally! Starbucks Says Goodbye to That Annoying Non-Dairy Milk Fee
Financial Challenges Drive Change
The strategic shift comes as Starbucks faces significant headwinds. The chain reported its sixth consecutive quarter of sales declines at stores open at least a year, with North American sales down 2% in the most recent quarter. Analysts have pointed to customer fatigue with impersonal, tech-centric transactions as a key factor in the decline.
Despite these challenges, mobile ordering remains crucial to Starbucks’ business model, accounting for 31% of all transactions. A company spokesperson clarified: “We’re not moving away from mobile ordering—it remains a critical part of our business. What we are doing is sunsetting the concept of mobile order and pickup-only locations.”
Major Store Renovations Underway
Parallel to the Pickup closures, Starbucks is embarking on an ambitious renovation program called the “Coffeehouse Uplift Program.” Starbucks will allocate $150,000 per store to “replace thousands of seats we removed and introduce greater texture, warmth, and layered design.” At least 1,000 stores across the United States will be upgraded by the end of 2025, starting in New York City and Southern California.
The renovations will focus on
- Reintroducing comfortable seating removed during the pandemic
- Adding power outlets and larger tables for community gathering
- Creating warmer environments with improved lighting and materials
- Maintaining operations during renovations to ensure continuity
New Store Formats on the Horizon
Looking ahead, Starbucks is developing new store prototypes that balance efficiency with hospitality. “We have a new standalone prototype that will open in fiscal 2026 that has 32 seats, a drive-thru, and a roughly 30% lower cost to build,” Niccol revealed. Additionally, a smaller-format store with approximately 10 seats is currently under construction in New York City.
Generational Appeal and Menu Innovation
Interestingly, customer-value perceptions are near two-year highs, driven by gains among Gen Z and millennials, who make up over half of Starbucks’ customer base. This data suggests that younger consumers, initially thought to prefer quick, tech-driven experiences, actually desire more warmth and connection from their coffee shop visits.
Beyond store changes, Starbucks is also refreshing its menu offerings. The company will introduce Protein Cold Foam in the coming months, providing customers with a way to add 15 grams of protein to any cold beverage without added sugar. Early 2026 will see the launch of a “reimagined artisanal baked case” and a new 1971 dark roast coffee, with additional testing planned for coconut water-based beverages and gluten-free options.
Looking Forward
The closure of Pickup stores represents a significant pivot for Starbucks as it attempts to balance digital convenience with the human connection that originally defined the brand. Some Pick Up locations will be converted into traditional coffeehouses where feasible, while others will close permanently.
For CEO Brian Niccol, who took the helm in September 2024, this transformation goes beyond physical changes. He expects the ongoing changes to Starbucks operations will “improve and transform the foundations” of the company’s North American business while “reestablishing that moment of connection between a barista and their customer.”
As Starbucks navigates this transition, the success of its “Back to Starbucks” strategy will depend on whether customers embrace the return to a more traditional coffeehouse experience while still enjoying the digital conveniences they’ve come to expect. With significant investments planned and a clear vision for the future, the company is betting that human connection, not just convenience, will drive its next chapter of growth.
For customers with questions about specific pickup locations in their area, Starbucks has not yet released detailed closure timelines but encourages checking with individual stores or the company website for updates as the transition progresses through 2026.
