Starbucks has announced plans to phase out its pick-up only concept stores as part of a broader evaluation of its coffeehouse portfolio across the United States. During a recent earnings call, CEO Brian Niccol shared that this move will help ensure that Starbucks maintains the right locations to drive profitability and enhance customer experience.
The decision to “sunset” the pick-up only stores, which were introduced in 2019 and number between 80 to 90 nationwide, comes from an acknowledgment that the concept felt overly transactional and didn’t provide the warmth and human connection integral to Starbucks’ brand. Niccol noted that the company plans to leverage its robust digital offerings to maintain convenience while focusing on community-oriented coffeehouses, where customers can enjoy a more integrated Starbucks experience.
While some locations will close, others may be converted back into traditional coffeehouses featuring seating for customers. This strategic change aligns with Starbucks’ “Back to Starbucks” initiative, aimed at enhancing customer service and enriching the overall coffeehouse experience. In line with this initiative, the company is also investing around $150,000 per store for “uplifts,” which involve renovations to improve the ambiance and comfort of the locations.
Customer satisfaction metrics have shown improvement, with increased connection scores and reduced complaints reported quarter-over-quarter and year-over-year. Renovation efforts are currently underway in New York, while similar updates are planned for locations in Southern California. Additionally, a new stand-alone prototype Starbucks store is set to open in New York.
This shift reflects Starbucks’ commitment to refining its operations and enhancing customer experiences. By moving back towards a more traditional coffeehouse model, Starbucks aims to foster the community feel that many customers cherish while continuing to offer the convenience they expect.