Starbucks has announced it will gradually shut down its pickup-only stores in the United States, marking a strategic shift back to its core café experience. The decision follows concerns that these mobile order–only outlets lacked the warmth and human connection central to the Starbucks brand.
Introduced in 2019, the pickup-only format was designed for speed and convenience, primarily targeting urban areas. At their peak, about 90 such locations existed, accounting for nearly one-third of mobile transactions. However, CEO Brian Niccol said the model contributed to a 2% drop in same-store sales and a 47% fall in quarterly net income, which disappointed Wall Street expectations.
The move is part of the company’s broader “Back to Starbucks” initiative, which emphasizes a return to café-style experiences with in-store seating, friendly barista interaction, and quick service (drinks served within four minutes).
Some pickup-only stores may be converted into full-service cafés, blending mobile convenience with the traditional coffeehouse ambiance. Starbucks also plans to revamp at least 1,000 U.S. stores by the end of next year, restoring seating areas and scaling back automation.
Niccol reaffirmed Starbucks’ commitment to hiring more baristas and prioritizing customer experience over automation. The company operates over 41,000 stores globally, and its shares rose over 4.5% in after-hours trading following the announcement.
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