Starbucks’ choice to shut pick-up only locations could hurt bottom line

Beginning in 2026, Starbucks will be phasing out its mobile order pick-up only locations, abandoning an approach built for speed and efficiency. In an earnings call, Starbucks CEO Brian Niccol said the pick-up only locations had a transactional feel that lacks warmth and human connection. The move favours ‘stay and savour’ customers over ‘grab-and-go ones’, writes Vivek Astvansh in The Conversation. The move could come at a cost, argues the Associate Professor of Quantitative Marketing and Analytics at McGill Desautels. Patrons who ‘stay-and savour’ at a coffee shop don’t necessarily spend more money than those who ‘grab-and-go’, closing pick-up only locations could make the company less profitable overall.