Starbucks Abandons Pickup-Only Stores in US, Eyes New Prototype Format

Starbucks plans to discontinue its pickup-only store format in the US, which was introduced in 2019 and grew to around 90 locations. The company found this format to be overly transactional and lacking in warmth and human connection. Instead, Starbucks is focusing on its "small format version" of stores with just 10 seats in New York City and building a "strong digital offering" with its app.

Starbucks has announced plans to discontinue its pickup-only store format in the United States, a model introduced in 2019. The company's decision, which will be implemented over the next few years, reflects a shift in strategic direction aimed at enhancing the customer experience and aligning with the brand's core values.

The pickup-only store concept, which initially grew to around 90 locations, was designed to streamline the ordering process through the mobile app, providing quick service without the traditional café experience. However, Starbucks CEO Brian Niccol has stated that this format was "overly transactional and lacking the warmth and human connection that defines our brand" [1].

Instead, Starbucks is focusing on its "small format version" of stores with just 10 seats in New York City and building a "strong digital offering" with its app. The company believes that this new prototype will deliver an exceptional customer experience, improve unit economics, and unlock growth opportunities in more markets [1].

The decision to discontinue the pickup-only stores comes as part of Starbucks' broader strategy to improve its customer experience and financial performance. Despite the shift in strategy, the company is not moving away from mobile ordering, which accounts for 31% of transactions [2].

The phase-out process will see some locations permanently closed, while others will be converted into traditional coffeehouses. The company has not yet released specific details on the locations that will be affected, but it is expected to impact approximately 80 to 90 stores across more than 20 states [2].

Starbucks' move to discontinue the pickup-only store format is part of a broader effort to enhance its customer experience and financial performance. The company has been investing in operational improvements and innovation to better serve its customers and associates. As of the third quarter of 2025, global comparable store sales fell by 2% year over year, but the company remains optimistic about its future prospects [3].

References:
[1] https://finance.yahoo.com/news/starbucks-discontinue-pickup-only-store-091032136.html
[2] https://finance.yahoo.com/news/starbucks-ceo-announces-sunset-entire-175307262.html
[3] https://finance.yahoo.com/news/4-takeaways-starbucks-customer-experience-152523513.html