The CEO of Starbucks has announced that all pickup stores in the United States will close permanently by 2026. Starbucks wants to return to its roots and the importance it placed on direct customer service. According to Brian Niccol, CEO of Starbucks, this pickup store model is “too transactional and neglects the warmth and human connection that characterizes the brand.”
The warmth of the stores and the fact that many outlets even include a positive message on the cups
This is very important for the brand, as it is characterized, among other things, by having smiling employees who write the customer’s name on the cups in which they serve the coffee. In fact, many customers go to Starbucks because of the unique service this coffee giant offers to go. The warmth of the stores and the fact that many outlets even include a positive message on the cups. This is precisely what the brand wants to promote with this change.
“When appropriate, we will convert some into traditional coffee shops”
In the United States, there are 96 branches dedicated exclusively to delivery. Some of them will disappear completely, while others could be converted into coffee shops. Plans are underway to repurpose them. “When appropriate, we will convert some into traditional coffee shops with table service to better serve our customers and communities,” said Starbucks officials.
Brian Niccol: “To improve and transform the brand’s operational processes”
All of this comes from a recent announcement. On July 29th of this year, Starbucks held a conference call to report its third-quarter results. During the event, the company announced that it would be abandoning the pickup store concept by 2026. From what we’ve seen so far, Niccol is pushing for changes to “improve and transform the brand’s operational processes” and establish a connection between barista and customer.
These establishments have almost no interaction with employees, and they don’t have furniture for people to eat
Perhaps the pickup market model has become normalized, especially after the COVID-19 pandemic, when social distancing and citizen safety were paramount. The lack of interaction was essential, and to some extent, this has been maintained in some locations. As Starbucks explained, pickup branches were designed to accept orders from the app and deliver them to the customer’s chosen location. In pickup stores, only beverages can be picked up. These establishments have almost no interaction with employees, and they don’t have furniture for people to eat their food.
“What we’re doing is moving away from mobile orders and pickup-only locations”
According to Starbucks, the company isn’t abandoning the ability for customers to place orders online, but they are limiting the number of locations dedicated solely to delivery. “They remain a core part of our business and represent 31% of transactions… What we’re doing is moving away from mobile orders and pickup-only locations,” they assert.
Pickup stores: California is the state with the most Starbucks pickup stores
And this method of picking up coffee has been intensifying throughout the United States. In fact, with 20 locations, California is the state with the most Starbucks pickup stores. The company has yet to announce a specific plan for which stores will transition to traditional table-service coffee shops or which will close, only that there are plans to abandon the pickup-only concept.
All of this could be a good way to reconnect with customers, to reestablish those conversations that represent us as interacting human beings. Starbucks, with a presence all over the world, is backtracking in order to return a little to its roots. It remains to be seen what the action plan is and how this decision is received by customers.
