This year, a significant update is impacting Starbucks customers seeking coffee “near me.” Starbucks CEO Brian Niccol has announced that the company plans to phase out its “Pick Up” locations by 2026, a change that will affect approximately 80 to 90 stores nationwide. This decision, communicated during the company’s earnings call on July 29, marks a pivotal shift in Starbucks’ retail strategy and reaffirms the company’s commitment to enhancing the customer experience.
What is Starbucks’ ‘Pick Up’ Concept?
Starbucks introduced the “Pick Up” store model in 2019 to cater to the increasing demand for mobile ordering and quick service. Designed exclusively for mobile orders, these locations allow customers to place orders using the Starbucks app, choose a nearby Pick Up location, and grab their coffee without waiting in line. The model quickly expanded and became a fixture in major cities, including Nashville, Tennessee.
Why is Starbucks Phasing Out ‘Pick Up’ Locations?
According to CEO Brian Niccol, the decision to “sunset” the Pick Up model stems from a desire to restore the personal connection that is often lost in overly transactional shopping experiences. He commented that while mobile ordering has proven successful—representing about 31% of Starbucks transactions—the Pick Up-only stores lack the warmth and community feel characteristic of Starbucks. Instead, Niccol envisions a return to traditional coffeehouses that can still leverage mobile ordering for a superior customer experience.
Tennessee Stores Affected by the Closure
As Starbucks prepares to close its Pick Up locations, three notable stores in Tennessee are on the list:
- Pickup Amazon Tower 1: 105 Platform Way N.
- Pickup Broadwest: 1610 West End Ave. 107
- Pickup Fifth Third Center: 424 Church St. Suite 110
These closures will begin in 2026, with some stores potentially transitioning into traditional Starbucks coffeehouses, offering a blend of customer service and convenience.
The Future of Starbucks Near Me
While the phasing out of Pick Up stores may come as a surprise to loyal customers, Starbucks assures that mobile ordering will still be a key part of their strategy. With many traditional Starbucks locations embracing mobile orders, the company aims to enhance the overall customer experience while keeping convenient mobile options in place. This shift marks a strategic move by Starbucks to rekindle the human connection in its stores, all while remaining true to its digital innovation roots.
Frequently Asked Questions
1. What is Starbucks’ Pick Up model?
The Pick Up model was established to streamline mobile ordering, allowing customers to order through the app and pick up their coffee without waiting in lines.
2. Why is Starbucks discontinuing Pick Up stores?
CEO Brian Niccol stated that the Pick Up locations are overly transactional and do not provide the warmth and human touch that Starbucks values.
3. When will Starbucks Pick Up locations close?
The closure of these locations is expected to start in fiscal 2026.
4. What locations in Tennessee will be affected?
The three Starbucks Pick Up locations in Tennessee include Amazon Tower 1, Broadwest, and Fifth Third Center.
5. Will mobile ordering still be available at other Starbucks?
Yes, Starbucks will continue to offer mobile ordering at traditional coffeehouse locations.