Why is Starbucks closing almost 100 stores? Details explored

Starbucks is dialing back on nearly 100 of its “Pick Up‑only” locations across the U.S., and the reasons go beyond just saving space. The company’s “Back to Starbucks” move is all about trading shortcuts for soul, swapping out faceless efficiency for that cozy café vibe we all secretly crave.

These pick‑up‑only stores, introduced in 2019, were built for speed with minimal seating, minimal chatter. But now CEO Brian Niccol says they’ve become too transactional, lacking the warm, human connection that a Starbucks should serve alongside its espresso. The change signals a strategic shift: Starbucks wants you to linger, relax, and feel seen, while still sipping your latte on the go.

​​Addressing why Starbucks is closing almost a hundred stores

At the heart of the matter: Starbucks is closing or transforming around 80 to 96 pick-up-only stores nationwide through the 2026 fiscal year. These spots were all about quick mobile-order takeaways, with walk‑up windows or drive‑thrus with zero seating. They were everywhere, but increasingly, their lack of atmosphere started looking like a missed opportunity for human connection.

In earnings calls, Niccol dismissed the pick‑up model as “overly transactional and lacking the warmth and human connection that defines our brand”. On top of that, the concept hasn’t stopped traffic from declining as Starbucks recorded six straight quarters of same‑store traffic drops, giving more reason to rethink the model.

But don’t start mourning quite yet: not all these stores are vanishing. Many are part of a revival play under the “Coffeehouse Uplift Program,” getting a warm reboot with comfy seating, inviting textures, the return of ceramic mugs (yes!), and scribbled greetings on your cup. Starbucks plans to pour around $150,000 per location into remodeling at least 1,000 cafés by the end of 2026, starting with hotspots like New York City and Southern California.

Meanwhile, mobile orders aren’t getting the boot, they’ll still make up about 31% of transactions, backed up by digital upgrades and a commitment to fast service, like delivering your drink in under four minutes, within a café, not a window.

On top of breathing life back into cafés, Starbucks is also rolling out a few tasty updates, rolling out Protein Cold Foam (15 g protein, no added sugar) later this year, along with revamped bakery displays, a bold 1971 dark roast, coconut water-based drinks, and gluten-free/high-protein options on the horizon.