Starbucks to Close Pickup-Only Locations in Grand Rapids

News Summary

Starbucks is set to close its pickup-only store in Grand Rapids as part of a strategy to move away from this model by fiscal 2026. This decision impacts around 80-90 such stores across over 20 states, with a focus on enhancing customer experience and fostering a more traditional coffeehouse atmosphere. CEO Brian Niccol emphasizes this shift aims to reconnect with customers through the warmth and human interaction Starbucks is known for, alongside the introduction of a new app in 2026 to improve mobile ordering.

Grand Rapids – Starbucks has announced the closure of its Ionia & Oakes location in Grand Rapids as part of a broader strategy to discontinue its pickup-only store model by fiscal 2026. This decision affects approximately 80 to 90 “Pick Up” stores across more than 20 states, with some locations facing permanent closure and others set to be converted into traditional coffeehouses.

CEO Brian Niccol revealed these plans during a recent earnings call, emphasizing the company’s aim to “get back to Starbucks.” This shift indicates a move away from the pickup-only format, which Niccol described as feeling “overly transactional” and lacking the “warmth and human connection” that the brand is known for.

The pickup-only concept was first launched in New York in 2019, designed to cater predominantly to mobile orders and quick pickups. While this model was innovative at its inception, Starbucks has realized that it did not foster customer loyalty beyond the convenience of grab-and-go options.

Starbucks will maintain its focus on mobile ordering, a service that currently accounts for 31% of the company’s total transactions. However, the impending closure of the pickup-only locations does highlight a strategic pivot to enhance customer experience and interaction within its stores.

Other affected locations include Starbucks stores in cities like Cambridge, Medford, and Boston. The phase-out plan aims to provide a more engaging atmosphere where customers can enjoy the brand’s signature coffee culture, rather than simply transacting for beverages.

The company continues to see significant presence in Michigan, with 283 stores as of 2023, a decrease from 310 in 2021. This reduction in locations may reflect broader market trends as well as shifts in consumer preferences, particularly favoring more traditional coffeehouse environments where social interaction is encouraged.

As part of the strategic changes, Starbucks is also set to introduce a new app in 2026 to further enhance the mobile ordering experience, aligning with the ongoing commitment to convenience while improving customer engagement.

This transition marks a notable change in the brand’s approach to customer service and experience, underlining Starbucks’ ongoing commitment to strengthening its community ties and fostering relationships with its customers.

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