CNN — Starbucks is shutting down its pick-up only stores just six years after introducing the concept, because they no longer mesh with the struggling coffee chain’s overall strategy.
“We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,” Starbucks CEO Brian Niccol said on its earnings call late Tuesday.
The store model, which launched in New York in 2019, encouraged customers to order via their mobile app and wasn’t meant to be a place to linger, like a traditional location that has seating. Although some have a small indoor area, others have only pick-up windows.
Dubbed “Starbucks Pick Up,” the spin-off eventually grew into roughly 90 locations across the United States, usually built in downtowns, airports and hospitals. Some of those locations might be converted to a traditional Starbucks in the future, but the company didn’t immediately respond to comment about which locations will be changed.
Niccol said that the company’s “strong digital offering” with its app “can deliver the same level of convenience through our community coffeehouses.”