Starbucks eliminates grab-and-go stores to enhance in-store experiences

In fiscal 2026, Starbucks will close its pickup-only grab-and-go locations, a decision linked to a strategic overhaul led by CEO Brian Niccol. This initiative aims to revitalize customer traffic and restore the traditional coffeehouse experience. Niccol's approach is intended to shift the brand's culture back to in-store interaction, moving away from what has been deemed an overly transactional model that lacks warmth and connection. Currently, Starbucks operates between 80 to 90 grab-and-go locations in North America. Not all of these locations will be closed; some will be transformed into full-fledged coffeehouses equipped with seating areas. These changes stem from Niccol's evaluations of the North American portfolio to ensure the company has the right coffeehouses in optimal locations that are conducive to profitability. Since taking over in the fall of 2024, Brian Niccol has focused on cultivating a more positive work environment while also boosting profitability. His strategy, termed "Back to Starbucks," encompasses restructuring internal operations by cutting resources, simplifying menus, and emphasizing transparency regarding pricing on their mobile app. Niccol believes that a strong digital offering can maintain convenience for customers without relying on a grab-and-go service that detracts from the overall Starbucks experience. In addition to operational changes, Starbucks aims to enhance the in-store atmosphere by reintroducing traditional elements like condiment bars and encouraging customers to stay longer by offering complimentary refills on brewed drinks. Niccol has also introduced benefits to employees, such as an extended parental leave policy, as part of his goal to create the best retail job environment.available. Overall, the strategy reflects a direction toward enriching customer experience and improving financial outcomes by fostering a deeper connection between the brand and its clientele.