Starbucks says it will “sunset” its pick-up only concept stores across the country as the company moves to evaluate its portfolio of coffeehouses across the U.S.
Starbucks CEO Brian Niccol announced the change during an earnings call Tuesday, as part of the company’s “evaluation” of Starbucks’ North American portfolio, to ensure it has “the right coffeehouses in the right locations to drive profitability and deliver the Starbucks experience.”
As part of the evaluation, Niccol said, Starbucks will “sunset” some of its pick-up only concept stores that launched in 2019. According to the company, there are currently between 80 and 90 of these types of stores across the U.S.
“We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,” Niccol said. “We have a strong digital offering and believe we can deliver the same level of convenience through our community coffeehouses with a superior mobile order and pay experience.”
Starbucks launched the pick-up store concept in 2019 as stores “exclusively designed for mobile orders and quick pick up without the wait.” There are nearly 100 pick-up only locations across the U.S., including inside some airports, according to the company website.
According to the company, not all pick-up locations will close. Some would be converted to traditional coffees houses with seating, Starbucks said.
The move comes as Starbucks undergoes a number of changes as part of a “Back to Starbucks” plan that better prioritizes customers service and what the company calls as “the coffeehouse experience.”
“Customer connection scores are up and customer complaints are down, both quarter-over-quarter and
year-over-year,” Niccols said.
Niccols also said Starbucks was investing approximately $150,000 per store for quick renovations it described as “uplifts.”
“Uplifts are intended to quickly replace thousands of seats we removed and introduce greater texture, warmth and layered design,” Niccols said. The process is underway at stores in New York, with uplifts also planned in Southern California. The company also has a new “standalone protoype” store set to open in New York.
According to the company website, the following Starbucks stores are pick-up only. It wasn’t immediately clear if any of the Illinois locations were slated for closure, or would be converted.
- 55th & Woodlawn – Hyde Park
- 227 W. Monroe – Chicago
- 555 S. Dearborn – Chicago
- 2063 N. Clark – Dickens
- Addison and Sheffield – Chicago
- Golf & Higgins – Schaumburg
- Lake & Waukegan – Glenview
- Lima & Ludwig – Fort Wayne
- Plainfield-127th & Route 59
- Prentice Women’s Hospital – Chicago
- Wrightwood & Racine – Pick Up