Starbucks Closes Down Entire Chain of Coffee Shops
Starbucks, the global coffee giant, is revamping its strategy to focus more on traditional coffeehouses and less on mobile-only pick-up stores. This shift comes after a six-year experiment with the latter format, which saw the company close or convert approximately 80 to 90 pick-up-focused stores nationwide by the end of 2026.
The mobile-only stores, known as Starbucks Pick Up, were first launched in 2019, primarily in downtowns, airports, and hospitals. These locations were designed for customers to order via mobile app and were not meant for lingering. However, Starbucks CEO Brian Niccol stated that these stores lacked warmth and human connection, central to the brand's identity.
In an effort to restore the coffeehouse vibes the chain was originally known for, Starbucks is building a "coffee house uplift program" that will refurbish about 1,000 stores in North America by the end of 2026. This program aims to enhance comfort and ambiance, removing or replacing seating removed in previous iterations to foster a friendlier environment.
Starbucks is also developing new store prototypes, dubbed "the coffeehouse of the future." These new sites will blend mobile ordering with traditional coffeehouse elements, featuring seating, drive-thrus, and lower building costs. The goal is to improve the customer experience and store profitability by balancing convenience with in-person hospitality.
The financial results do not yet fully reflect the progress made by Starbucks. Despite the financial declines, the company reported its sixth consecutive quarter of sales declines at stores open at least a year. However, Niccol remains optimistic, stating that the chain is gaining momentum.
One of the promising signs is the return of purchases from non-Rewards members to growth. Moreover, the new store design is expected to unlock growth opportunities in more markets. Recently, Starbucks unveiled a new cafe with cozier chairs, power outlets, and larger tables, intended to be the model for the Starbucks of the future.
Starbucks' digital offering with its app can deliver the same level of convenience as the pick-up only stores. This new prototype is aimed to deliver an exceptional customer experience and improve unit economics. Some of these locations might be converted to traditional Starbucks stores in the future.
In conclusion, Starbucks’s future strategy focuses on reviving its core identity as a "third place"—a community-driven, experiential coffeehouse—moving away from purely mobile, pickup-only locations toward hybrid models that combine technology with human connection and comfortable store environments.
[1] Starbucks to close mobile order-only, pick-up-focused stores nationwide
[2] Starbucks to revamp stores to focus on coffeehouse vibes
[3] Starbucks to shutter mobile order-only stores
[1] Starbucks is planned to close mobile order-only, pick-up-focused stores nationwide by the end of 2026, as they lack warmth and human connection, central to the brand's identity.
[2] To restore its original identity as a coffeehouse, Starbucks is renovating about 1,000 stores in North America by the end of 2026, focusing on creating a more comfortable and ambient environment for customers, blending technology with traditional coffeehouse elements. This revamp aims to improve the in-store experience and enhance store profitability.
