Starbucks Announces Closure of Nearly 100 Stores in Major Strategy Shift

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Starbucks Announces Closure of Nearly 100 Stores in Major Strategy
Beverage cups featuring the logo of Starbucks Coffee are seen in the new flagship store on 42nd Street August 5, 2003 in New York City. Stephen Chernin/Getty Images/Getty Images

Starbucks has announced it will close nearly 100 mobile-order and pick-up-only stores across the US as part of a bold new strategy to focus on bringing back the classic coffeehouse experience.

According to GoodHousekeeping, CEO Brian Niccol shared the news during the company's latest earnings call, explaining that the closures are part of its "Back to Starbucks" plan.

The move marks a shift away from convenience-only locations and back toward community-focused stores with seating, ceramic mugs, and personal touches.

"We found the [Pick Up Store] format to be overly transactional and lacking the warmth and human connection that defines our brand," Niccol said.

The pick-up-only stores, which began opening in 2019, were designed for speed and efficiency. Many had no seating, and some operated only through windows or drive-thrus.

Starbucks to Close 96 Pick-Up Stores by 2026, Focuses on Cozy Cafés

Starbucks plans to close all 96 of these pick-up stores during the 2026 fiscal year.

States expected to see the most closures include California, Texas, New York, and Illinois. A full list of locations was not provided, but affected stores range from city centers to college campuses.

Though some customers relied on these stores for quick mobile orders, Niccol said Starbucks can still provide that convenience through its regular cafés.

The company plans to improve mobile order and pay features in traditional stores, while also encouraging customers to stay longer and enjoy the full experience.

Not all closed stores will disappear for good. Some may reopen as part of Starbucks' "Coffeehouse Uplift Program."

Under this plan, the company is investing $150,000 per location to redesign stores with more warmth, seating, and textured design, AllRecipes said.

Niccol said Starbucks will complete at least 1,000 store upgrades by the end of the year, starting in New York City and Southern California.

In addition to store changes, Starbucks also has product updates planned. A new "Protein Cold Foam" will launch later this year, adding 15 grams of protein to cold drinks with no added sugar.

Early next year, customers can expect a redesigned bakery case, a new 1971 dark roast, and coconut water-based beverages in select markets.

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