Starbucks is closing its pickup-only grab-and-go stores next year to better align with CEO Brian Niccol’s strategic coffeehouse portfolio overhaul aimed at revitalizing traffic and restoring in-store experiences.
Starbucks decided to sunset its mobile order and pickup-only concept in fiscal 2026 following an evaluation of its North American portfolio to ensure it has “the right coffeehouses in the right locations to drive profitability and deliver the Starbucks experience,” Niccol said on the company’s earnings call Tuesday.
Niccol said the grab and go model was “overly transactional and lacking the warmth and human connection that defines our brand.” Niccol, who took over nearly a year ago, believes the company’s digital offering is strong enough to deliver the same level of convenience for customers.
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His goal is to revitalize the coffee house aesthetic to keep customers in stores longer while providing a “superior” mobile order experience, changes he believes will “improve and transform the foundations of our North American business.”
There are currently 80 to 90 of these locations. Some of them won’t close outright but instead be converted into traditional coffeehouses with seating.
Since taking over as CEO in the fall of 2024, Niccol has been trying to rebuild the company’s culture through his “Back to Starbucks” strategy.
Niccoli is not only working to boost profitability, but also to improve the work environment to create the “unrivaled best job in retail” after the company faced years of growing pressure from unionization campaigns nationwide and consecutive disappointing fiscal quarters as traffic declined.
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He has been working to streamline operations, including cutting 1,100 support partner roles and closing several hundred open, unfilled positions earlier this year to build more agile teams. Employees are also now required to return to the office four days a week to “eestablish our in-office culture,” Niccol said.
He also simplified the company’s menu, cutting more than a dozen under-performing drinks to foster innovation and reduce wait times. He also said the company is in the midst of working to make the price of food and drinks on its app more transparent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 89.16 | -3.60 | -3.88% |
To return the stores to their former aesthetic, it brought back the condiment bar and re-introduced “personal touches” like offering mugs for customers that ordered “for here” as well as offering free refills on hot brewed or iced coffee and tea. The goal is to keep customers in its stores for longer.
The company has also been boosting benefits, like doubling parental leave, for workers.
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