Starbucks announced a major change in its strategy, and will close its branches that only provide take-out service, which allow the pickup of orders through mobile applications, all to align with a new renovation strategy under the direction of CEO Brian Niccol.

This change, which will be implemented in fiscal year 2026, aims to revitalize the customer experience and increase traffic to physical cafes.

Niccol, who took over in the fall of 2024, explained that after a detailed evaluation of its store portfolio in North America, the company decided to abandon the concept of mobile orders exclusively for to-go.

According to the CEO, the "excessively transactional" model lacked the "warmth and human connection" that have always been fundamental to the Starbucks brand. Rather than continuing with this model, Niccol is committed to improving the aesthetics and atmosphere of traditional coffee shops, with the goal of making them more attractive and encouraging customers to stay longer.

Traditional coffee shops for greater connection

The "pickup-only" concept, which currently operates between 80 and 90 stores across North America, will be transformed. Some of these establishments will be converted into traditional coffee shops with tables and spaces designed for enjoying coffee on-site.

This change not only seeks to restore social interaction, but also to improve the overall customer experience, ensuring that the stores are in the right locations and have the right services to maximize profitability.

Niccol's renewal strategy also includes significant operational adjustments. The CEO is focusing on rebuilding Starbucks' internal culture, especially after years of external pressure due to unionization campaigns and several fiscal quarters with disappointing results.

Job Cuts

To achieve this, has streamlined operations, including eliminating 1,100 support positions and closing hundreds of vacancies to create more agile teams. Additionally, the decision has been made that employees must return to the office four days a week to "strengthen the work culture."

Another key aspect of Niccol's strategy has been the simplification of the Starbucks menu, eliminating underperforming drinks to reduce wait times and encourage new product innovation.

In line with these improvements, Starbucks is also working to offer greater product pricing transparency on its mobile app, which could improve the shopping experience.

The CEO has highlighted that, as part of its strategy to recover the original atmosphere of the stores, the condiment bar has been reintroduced, and details such as offering cups to customers with takeaway orders have been added, in addition to offering free coffee refills and tea, both hot and cold.

In addition, Starbucks has doubled employee benefits, including parental leave, to improve the well-being of its team.

With these changes, Starbucks seeks to strengthen its presence in the market and return its coffee shops to their essence, while improving both the customer experience and the work environment for its employees.