Starbucks plans to close its pickup-only grab-and-go stores starting in fiscal 2026, as part of a strategic overhaul led by CEO Brian Niccol. This decision aims to re-align the company’s offerings with its established coffeehouse experience, focusing on restoring in-store customer interactions. Niccol described the grab-and-go model as overly transactional, lacking the warmth that defines Starbucks’ brand.
Following an evaluation of the North American portfolio, Starbucks will transition some of the 80 to 90 existing location into traditional coffeehouses with seating. This shift aligns with Niccol’s broader “Back to Starbucks” initiative, which seeks to rebuild company culture and enhance the operational environment amid challenges posed by unionization and declining store traffic.
Efforts to revitalize the coffeehouse aesthetic include bringing back condiment bars and offering personal touches such as mugs for in-store orders and free refills on brewed coffee and tea. Niccol is also streamlining operations, which includes cutting roles and requiring more in-office work to foster teamwork and collaboration.
To further improve customer experience, Starbucks is simplifying its menu by removing underperforming drinks and enhancing pricing transparency on its mobile app. The company is also increasing employee benefits, including doubling parental leave, in a bid to create a more appealing workplace.
This reimagining of the Starbucks experience presents an optimistic outlook as it prioritizes customer engagement and employee satisfaction, positioning the brand for a revitalized future amidst a changing retail landscape.