Starbucks is discontinuing mobile order and pickup-only stores

Yahoo

31-07-2025

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Starbucks is doubling down on bringing back the third place as in-store customers remain a top priority for the company. The Seattle-based coffee chain will begin sunsetting its mobile order and pickup-only stores, which were first introduced in 2019, CEO Brian Niccol said during Tuesday's earnings call for the third quarter ended June 29, 2025.
Instead, Starbucks will be focusing on implementing two new store prototypes that are off-premises-focused but not exclusively pickup-only. The new standalone prototype, which will open in 2026, has 32 seats, a drive-thru, and approximately a 30% lower cost to build. An urban small format version with approximately 10 seats is under construction in New York City and will open in the next few months, Niccol said.
Starbucks later confirmed that not all of these mobile order-only stores will close, and some will be converted into traditional coffee shops.
'We plan to complete an evaluation of our North America stores to ensure we have the right coffeehouses and the right ability to deliver the Starbucks experience,' Niccol said during Tuesday's earnings call. 'We found the [mobile order and pickup] format to be overly transactional and lacking the warmth and human connection that defines our brand. We have a strong digital offering and believe we can deliver the same level of convenience through our community coffee houses with a superior mobile order and pay experience.'
Focusing on in-person human connection is the goal of Green Apron Service — the new operations model Starbucks just announced in conjunction with third-quarter earnings.
Green Apron Service is underway and includes changes that have already been implemented like bringing back handwritten names and notes on cups. Starbucks will begin fully scaling the new service model to company-owned stores in August.
'Green Apron Service starts with five key moments, including craft and connection, that define the experience we want every customer to have every time they visit,' Niccol said. 'It is enabled by an evolved staffing model, which includes adjustments to roster size, labor hours, peak coverage, and deployment.'
Calling it, 'a different kind of service experience,' Niccol said that in stores where the service model has already been piloted, there have been noticeable improvements in transactions, sales, and customer service times.
Starbucks is simultaneously rolling out 'Smart Queue' technology, an advanced order sequencing algorithm that is designed to ensure consistent and timely service in Starbucks stores across channels. This new algorithmic approach has led to a 'double-digit improvement in café orders handed off in under four minutes, with 80% of in-cafe orders now meeting that target,' Niccol added.
With the focus on improving both service times and in-café experiences, Niccol implied that mobile order and pickup-only stores are not needed anymore since cafes should meet all consumer needs, including customers in a hurry.
'The cafes we operate should be warm and welcoming and provide a place for customers to connect and gather,' he said. 'They should have a great seat for any occasion, and they should provide customers a high-quality mobile order and pay experience.'
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