When Starbucks announced it would phase out its mobile-only pickup locations starting in 2026, the question was raised: Why abandon a format seemingly designed for speed and efficiency?
As Starbucks CEO Brian Niccol explained in an earnings call, pickup-only locations had a “transactional” feel, lacking “the warmth and human connection that define our brand.”
While Niccol also touted mobile ordering options at its brick-and-mortar coffee shops, I see Starbucks’ decision as an attempt to return to its roots as a “third space”: a place between home and work where people can gather and connect.
But this type of change comes with disadvantages and creates interesting market opportunities for competitors. As a marketing professor and coffee expert, I offer this analysis to accompany your morning coffee.
The two types of coffee shop customers
In general, coffee shops attract two different customer segments. The first are what I call “passing through” customers: people who use the premises mainly to meet or work. Their main interest is space, not mocha or muffins.
The second are “takeaway” customers: people looking for a consistent product, delivered efficiently. They don’t stay in the store for long, so the location is less important to them than the convenience, speed and quality of the product. Think about the morning rush at your local coffee shop.
Pickup-only Starbucks stores, known as Starbucks PICK UPthey serve customers who order takeout. If you don’t live in a busy area, you may have never heard of the brand – there are less than 100 Starbucks PICK UPmany in densely populated cities.
In contrast, there are about 17,000 Starbucks stores with curbside service in the United States. This means that your plan will affect only 0.5% of your premises. It’s not much.
You might be interested in: Starbucks announces its expansion in Central America
Why might this change irritate some Starbucks customers?
As I said before, I consider this measure to be part of an effort to prioritize customers who “stay and enjoy” over those who “take away.” In fact, in Niccol’s recent earnings presentation, it was stated that Starbucks is “prioritizing warmth, connection and community.” Starbucks also publishes a document laying out its “principles for maintaining third place,” and its commitment appears to be more than merely rhetorical.
The problem is that coffee shops are not like traditional restaurants in terms of menu prices and customer spending. Serving “stay and enjoy” customers is costly for coffee shops and can lead to insufficient revenue, making them less profitable. This could be detrimental to the final result.
The change could also have unforeseen consequences for workers and customers. For example, pickup-only stores allow employees to focus on food and beverage preparation, with less pressure to engage in casual conversations in hopes of building trust and tips.
In fact, extensive academic research has shown that restaurant workers who serve customers report greater emotional and work-related stress, as well as poorer morale and well-being than those who do not.
In contrast, Starbucks rivals, such as Dunkin’ and new Chinese competitor Luckin Coffee, eagerly welcomed customers ordering takeout. These rivals offer seating space, but don’t elevate their positioning as if their baristas offer warmth, connection and community.
Starbucks CEO Niccol described the plan as an “endgame.” I’ll be watching Dunkin’ and Luckin Coffee’s results, and of course Starbucks’ results in 2026, to determine if Starbucks comes to an end.
*Vivek Astvansh is Associate Professor of Quantitative Marketing and Analytics, McGill University.
This text was originally published in The Conversation
Subscribe to Forbes Mexico
