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Daily Newsletter

31 July 2025

Daily Newsletter

31 July 2025

Starbucks to discontinue pickup-only store format in US

Starbucks Pick Up had expanded to around 90 locations.

Umesh Ellichipuram July 31 2025

Starbucks is planning to discontinue its pickup-only store format, a concept that was introduced in November 2019 and is no longer in line with the company's strategic direction, CNN Business has reported

The initiative, which began in New York, aimed to streamline the ordering process through the mobile app, providing quick service without the traditional café experience.

Starbucks Pick Up grew to around 90 locations across the US, typically in city centres, airports and healthcare facilities.

While some stores included limited seating, many were designed exclusively for order collection.

The company has suggested that some of these locations may be transformed into standard Starbucks outlets in the future.

During the company’s recent earnings call, Starbucks CEO Brian Niccol stated: “We found this format to be overly transactional and lacking the warmth and human connection that defines our brand.”

He added that Starbuck’s “strong digital offering” with its app “can deliver the same level of convenience through our community coffeehouses.”

He noted that the company is also building a “small format version” of its stores with just 10 seats in New York City.

“We believe this new prototype will deliver an exceptional customer experience, improve unit economics and unlock growth opportunities in more markets,” he said. In late July 2025, Starbucks reported attributable net earnings of $558.3m for the third quarter of the fiscal year 2025 – a decline of 47% compared to the same period of 2024.

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