Starbucks Killing Off Pickup-Only Stores
Starbucks is shutting down its entire pickup-only store concept, affecting 80 to 90 locations across the country.
CEO Brian Niccol broke the news on an earnings call this week, saying the format was "overly transactional and lacking the warmth and human connection that defines our brand."
Translation: It turns out people don't just want their coffee—they want the whole Starbucks experience.
What's Getting Axed
The "Starbucks Pick Up" stores launched in New York back in 2019 as the company's answer to our grab-and-go culture. No seats, no baristas calling your name, just mobile order and pickup.
These stores popped up in downtown areas, airports, hospitals, and university campuses across more than 20 states. Some will close permanently. Others will transform back into regular Starbucks with actual chairs and humans who talk to you.
Niccol, who took over as CEO in September, wants to get "back to Starbucks.” Apparently, this doesn't include stores that feel like coffee vending machines.
Mobile Orders Aren't Going Away
Before you panic about your morning routine, Starbucks isn't ditching mobile ordering. It still makes up 31% of their transactions. They just want you to pick up that mobile order in a store where someone might actually smile at you.
"We have a strong digital offering and believe we can deliver the same level of convenience through our community coffeehouses with a superior Mobile Order and Pay experience," Niccol said.
The company plans to "sunset" these locations by fiscal 2026, giving them about a year to figure out which stores to close and which to convert.
Where the Axe Falls
The hit list includes locations from coast to coast. California takes the biggest hit with 23 locations, including spots in LA, San Diego, and San Francisco. Illinois has 12 on the chopping block, mostly in Chicago. New York follows with 14 locations, all in Manhattan except for one each in North Babylon and Yonkers.
Airport locations at Houston's IAH terminals are also getting the boot, along with university spots at Ohio State, Duke, and Miami University.
Some notable closures:
Union Station East Portal in Los Angeles
Multiple Manhattan locations including 42nd & Park
Downtown Seattle stores at 1st & Denny and 1st & University
Hospital locations including Beth Israel in Boston
Why This Matters
The pickup-only model was Starbucks' bet that convenience trumped experience. They were wrong. Even in our rush-rush world, people apparently want their $7 latte to come with a side of ambiance. Not a bad thing when you consider how easy it is to become disconnected in todays culture.
The move also signals Niccol's strategy to differentiate Starbucks from fast-food coffee. McDonald's and Dunkin' can do quick and transactional. Starbucks wants to be your "third place"—that spot between home and work where you actually want to hang out.
What Happens Next
If you're a regular at one of these pickup locations, start looking for alternatives. The company hasn't said exactly when each store will close or convert, just that it'll happen by 2026.
Employees at these locations face uncertainty. Starbucks didn't comment on whether they'll be transferred to other stores or laid off.
For the rest of us, this means fewer options for truly quick coffee runs. Those pickup stores were actually pretty efficient if you just wanted caffeine without the Starbucks theater.
The Bigger Picture
This isn't just about 90 stores. It's about Starbucks admitting it zigged when it should have zagged. In trying to compete with mobile-first competitors, they forgot what made them Starbucks in the first place.
Now they're betting that people will wait a little longer for their coffee if it comes with wifi, comfy chairs, and baristas who know your dog's name.