Starbucks to Close Up to 90 Pickup-Only Stores

Source: The Sun (exclusive report)
Author: Qahwa World – Dubai
Date: May 26, 2026

Starbucks to Close Up to 90 Pickup-Only Stores: End of Mobile-Order Experiment, Return to Traditional Coffeehouse

Executive Summary

  • Starbucks plans to close or remodel 80 to 90 pickup-only and mobile-order-focused stores across the US by the end of 2026.
  • The move is part of the “Back to Starbucks” turnaround strategy to restore traditional coffeehouse atmosphere.
  • CEO Brian Niccol said these stores became “overly transactional” and lacked warmth and human connection.
  • Mobile ordering will be integrated into full-service cafés with seating and in-store service, not standalone pickup counters.
  • States most affected: California, Illinois, New York, Texas, Washington.
  • Changes include more seating, couches, ceramic mugs, self-serve milk and sugar stations, and handwritten cup messages.

The Sun Exclusive: Starbucks Shifts Strategy

An exclusive report published by The Sun revealed that Starbucks plans to close or convert between 80 and 90 pickup-only and mobile-order-focused stores across the United States by the end of 2026. The decision is part of the broader “Back to Starbucks” turnaround strategy aimed at restoring the traditional coffeehouse atmosphere and improving customer interaction inside stores.

The pickup-only concept was introduced in 2019 to serve customers seeking fast mobile-order convenience, especially in busy urban areas. According to Starbucks leadership, the model did not create the kind of customer experience the company wants to emphasize moving forward.

CEO Brian Niccol’s Statement

CEO Brian Niccol previously stated that these stores became “overly transactional” and lacked the warmth and human connection associated with the Starbucks brand. Instead of relying on standalone pickup counters, Starbucks intends to integrate mobile ordering into standard café locations that include seating and traditional in-store service.

This shift reflects Niccol’s vision to return Starbucks to its roots as a community coffeehouse where human relationships matter, not just a fast pickup point.

States and Locations Most Affected

According to the report, stores in California, Illinois, New York, Texas, and Washington are among the most likely to be affected. Specific locations mentioned include:

  • California: Los Angeles (Broadway & 8th), San Francisco (California St. & Drumm St.), Santa Monica (Main & Ashland).
  • Illinois: Chicago (227 W. Monroe, Addison & Sheffield), Hyde Park (55th & Woodlawn).
  • New York: Manhattan (40th & 8th, 42nd & Park, Broadway between 36th & 37th).
  • Texas: Houston (City Centre, Hillcroft & US 59), Dallas (Victory Park Lane).
  • Washington: Seattle (1st & Denny), Bellevue (4th & Bellevue Way).

Other cities including Nashville, Philadelphia, Miami, and Boston were also listed among potential closures or conversions.

State Cities Affected
California Los Angeles, San Francisco, Santa Monica
Illinois Chicago, Hyde Park
New York Manhattan
Texas Houston, Dallas
Washington Seattle, Bellevue

What the “Back to Starbucks” Plan Includes

The company’s broader strategy includes several changes designed to make stores feel more welcoming and community-oriented:

  • More seating and lounge-style café layouts
  • Additional couches and power outlets
  • Return of ceramic mugs for in-store drinks
  • Reintroduction of self-serve milk and sugar stations
  • Baristas writing messages on cups again instead of relying entirely on printed labels
  • Continued support for mobile ordering through the Starbucks app

A Major Strategic Shift

The closures represent a major shift away from the fast-service urban pickup strategy Starbucks expanded during recent years. The company now appears focused on reinforcing its identity as a sit-down neighborhood coffeehouse rather than a purely convenience-based chain. Some pickup-only stores may close permanently, while others may be renovated and converted into traditional Starbucks cafés.

Customers will still be able to place mobile orders, but pickup will increasingly happen inside full-service cafés rather than dedicated pickup-only stores.

Frequently Asked Questions (FAQ)

1. How many stores will Starbucks close?

Between 80 and 90 pickup-only and mobile-order-focused stores across the US by the end of 2026.

2. What is the “Back to Starbucks” strategy?

It aims to restore traditional coffeehouse atmosphere with seating, couches, ceramic mugs, self-serve stations, and handwritten cup messages.

3. Why is Starbucks abandoning pickup-only stores?

CEO Brian Niccol said they became “overly transactional” and lacked warmth and human connection.

4. Will mobile ordering be eliminated?

No. Mobile ordering will continue, but pickup will happen inside full-service cafés instead of dedicated pickup stores.

5. Which states are most affected?

California, Illinois, New York, Texas, and Washington.

6. What will happen to closed stores?

Some will close permanently. Others may be renovated and converted into traditional cafés.

Author: Qahwa World – Dubai  |
Source: The Sun (exclusive report)  |
Publication date: May 26, 2026

Peet’s Coffee to Close Several San Francisco Locations

Dubai – Qahwa World

Peet’s Coffee is set to close multiple San Francisco locations, including its Polk Street café at 2139 C Polk St., as part of a broader restructuring expected to take effect by the end of January 2026.

A spokesperson for Peet’s confirmed the closures, emphasizing that the company is adjusting its operations to align with long-term growth strategies and current market conditions. Specific details regarding the total number of affected stores or their exact locations were not disclosed.

“These decisions reflect our ongoing commitment to sustainable growth while honoring the quality and heritage that have defined Peet’s for more than 60 years,” the spokesperson said. “We are deeply grateful to our employees and loyal customers and remain focused on innovation and excellence in every cup.”

Peet’s opened its Polk Street location in 1993 and currently operates more than 20 stores throughout San Francisco. Reports indicate that additional locations, including those at 919 Cole St. and 2257 Market St., are also expected to close this month.

The closures coincide with an $18 billion acquisition of Peet’s parent company, JDE Peet’s, by Keurig Dr Pepper, a deal slated to finalize later this year.

This wave of store reductions reflects broader shifts in the coffee industry as chains adapt to evolving market conditions and corporate restructuring plans.

CNN: Starbucks Scales Back Its Presence in Major U.S. Cities

Dubai – Qahwa World

CNN reported that Starbucks is pulling back from its long-standing strategy of saturating major U.S. cities such as New York and Los Angeles, marking a significant shift in the company’s expansion approach.

In a report published on its official website, CNN explained that Starbucks had spent decades trying to become an unavoidable presence on city streets, particularly in large metropolitan areas. However, that era is now coming to an end as the company grapples with increased competition, rising operating costs, and lasting changes in work patterns following the pandemic.

According to CNN, Starbucks is closing hundreds of stores across the United States this year, with a heavy concentration in major cities. The move is part of a broader restructuring plan valued at approximately $1 billion and is being led by CEO Brian Niccol, who joined the company last year from Chipotle with a mandate to revive growth and improve performance.

CNN noted that Starbucks closed 42 locations in New York City alone, representing around 12% of its total stores there. The closures caused Starbucks to lose its position as the largest coffee chain in Manhattan, a title now held by Dunkin’, according to data cited by the network from the Center for an Urban Future. The report added that the company has also shut down more than 20 stores in Los Angeles, 15 in Chicago, seven in San Francisco, six in Minneapolis, five in Baltimore, and dozens of others nationwide.

The report highlighted that Niccol is seeking to reduce store overlap and reposition Starbucks as a “third place” between home and work. CNN quoted a Starbucks spokesperson as saying that the company reviewed more than 18,000 stores in the United States and Canada and closed locations that were underperforming or unable to meet brand standards. Starbucks plans to open new stores and remodel existing ones starting in 2026, including in major cities, featuring updated designs and enhanced customer experiences.

CNN also pointed out that Starbucks is facing intense competition from independent cafés, regional coffee chains, and a growing number of beverage-focused brands offering smoothies, bubble tea, and other specialty drinks. Industry experts cited by CNN said the surge in urban coffee shop openings has eroded store traffic and sales volumes.

The network added that remote work has had a lasting impact on Starbucks’ urban locations, particularly those in central business districts that once relied on large numbers of daily commuters. CNN reported that Starbucks has closed several stores located in downtown office buildings as a result of these structural changes.

In addition, CNN reported that the company has struggled with operational challenges in dense urban markets, including safety concerns and the use of stores as public restrooms. As part of its response, Starbucks recently ended its open-access policy and introduced new in-store rules.

According to CNN, the store closures are part of a broader effort by Niccol to turn around the company after several years of weak sales and strategic missteps. Starbucks plans to renovate around 1,000 U.S. stores over the next year, adding seating and amenities aimed at encouraging customers to stay longer.

However, CNN concluded that the turnaround is proving more difficult than expected. The network noted that Starbucks’ share price has declined this year, and analysts remain cautious, warning that balancing fast service with a comfortable café experience continues to be a major challenge for the company.

Leon launches major restructuring plan with potential store closures

London – Qahwa World

Leon, the UK-based food-to-go and coffee chain, has initiated a company voluntary arrangement (CVA) as it works to shut down loss-making branches and reshape the business into a more efficient and sustainable operation.

This step follows the recent move by Co-founder John Vincent, who reacquired the brand from Asda just over a month ago.

Leon reported a pre-tax loss of £8.4 million ($11.3 million) for 2024, marking the company’s ninth consecutive year in deficit.

As part of the restructuring plan, the chain may close up to 20 underperforming outlets in an effort to reduce ongoing financial pressures. The CVA allows Leon to continue operating while arranging a structured repayment plan with creditors. Although the process is less costly than other insolvency options and keeps management in control, it is expected to lead to job cuts.

The initial phase will target branches that have been consistently unprofitable. Vincent said the process should help Leon emerge as a “leaner business” with a clearer path back to its original mission and values.

Vincent’s return to leadership has already brought significant changes. Shortly after retaking ownership of the 70-store chain, he discontinued Leon’s value-driven coffee subscription programme—ended only 18 months after its relaunch, which had aimed to attract budget-conscious customers.

Leon has not recorded a profit since 2015, and although losses were reduced by more than half in the previous year, the chain still ended 2024 with a substantial deficit.

Leon was founded in 2004 by Vincent, Henry Dimbleby, and chef Allegra McEvedy to introduce healthier fast-food options to the UK high street. However, after the brand’s sale to EG Group in 2021 and later to Asda in 2023, critics argue that its nutrition-focused identity has weakened.

In October 2025, shortly before Vincent took back control, Dimbleby—formerly a government advisor on food health—publicly criticised Asda, accusing it of undermining Leon’s concept by prioritising cheaper and saltier menu items.

During Asda’s tenure, Leon also expanded its presence in supermarkets. What began in 2019 with packaged coffee and sauces has since grown into a wide range of ready meals and frozen items such as waffle fries, burgers, and chicken nuggets—an area where some critics say the brand’s health-first approach has become less visible.

Financial advisory firm Quantuma has been appointed to manage the CVA process. Leon also announced a partnership with Pret A Manger to support employees who may face redundancy, offering opportunities for redeployment within Pret’s network.

From America to Europe: Starbucks Continues Store Closures

Dubai – Qahwa World

In less than two days, Starbucks’ downsizing plan has expanded from North America to Europe. After announcing yesterday the closure of hundreds of stores in the United States and Canada, the company today revealed further closures in the UK, Switzerland, and Austria, underscoring the challenges facing the world’s largest coffee chain.

Starbucks’ EMEA division confirmed that a review of its company-owned stores in Europe, the Middle East, and Africa has resulted in a decision to shutter outlets in three key European markets. The company did not disclose how many stores will close or the exact timeline but stressed the move is part of a broader strategy to align store formats with customer traffic and profitability.

This announcement comes just one day after the company said it would close around 400 stores in the U.S. and Canada and cut 900 non-retail jobs as part of a $1 billion restructuring plan. Read yesterday’s report here

Numbers Tell the Story

Starbucks currently operates nearly 5,000 stores across 42 countries in the EMEA region. The UK is its largest market, with 1,416 stores (521 company-owned). Switzerland has 49 company-owned outlets, while Austria operates 21.

The financial strain is evident in recent results: UK revenues fell 4% year-on-year to £525.6m ($668.9m) for the year ending September 2024, with a pre-tax loss of £35.2m ($44.8m). Across EMEA, revenues declined 9%, gross profit fell 5%, and operating profit dropped 16%.

“Back to Starbucks” Strategy

The closures form part of CEO Brian Niccol’s Back to Starbucks strategy, first launched in late 2024, which aims to return the brand to its “coffeehouse roots.” The strategy emphasizes simpler menus, stronger barista engagement, and encouraging customers to spend more time in stores.

Despite the retrenchment, Starbucks insists it remains committed to expansion. The company plans to open 80 new UK stores and 150 additional EMEA outlets by the end of the current fiscal year on 30 September 2025, with a pledge to return to net positive store growth across the region in 2026.

Starbucks to Close Hundreds of Stores and Cut Thousands of Jobs in a $1bn Austerity Plan

Starbucks is preparing to write off $1bn in costs and assets by closing hundreds of stores in North America and making further corporate layoffs.

Between June and the end of September, 400 US and Canada stores deemed unprofitable and unsuitable for refurbishment were closed or slated for closure. US store managers will find out this week if their outlet has been added to the list, extending cuts that have so far focused on takeaway-only stores.

However, in an open letter to employees, Starbucks CEO Brian Niccol announced that hundreds more sit-in stores deemed unsuitable for refurbishment under the Back to Starbucks strategy would also close. Starbucks has sought to move away from “overly transactional” takeaway stores and focus on longer dwell-time visits and more personalised service as part of a major strategy to reverse faltering sales in the US.

“We have identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” Niccol said in his letter.

Niccol forecasts that Starbucks will end its fiscal year with nearly 18,300 company-operated and licensed stores across North America, down from 18,734 at the end of its third quarter ended 30 June 2025. The Seattle-based coffee chain, which has posted six consecutive quarters of like-for-like sales decline in the US, plans to return to positive outlet growth across North America next year, as well as modernise more than 1,000 US stores 10% of its company-owned US locations.

Niccol has also announced further layoffs, just seven months after announcing plans to cut 1,100 corporate jobs across its global business. Approximately 900 non-retail roles will be axed as the coffee chain seeks to prioritise investment in retail operations.

“These steps are to reinforce what we see is working and prioritise our resources against them. We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth,” Niccol added.

In a separate SEC filing, Starbucks said $450m of the total $1bn costs will be allocated to exiting leases early, with a further $400m on the disposal of company-operated store assets. The remaining $150m will be allocated to severance and staff support packages.

In July 2025, Starbucks reported 2% year-on-year net revenue growth in North America to reach $6.9bn. However, the coffee chain saw third quarter like-for-like sales and comparable transactions both declined.

Tims China Accelerates Franchise Push Amid Store Closures to Regain Profitability

Dubai, 27 August 2025 (Qahwa World) – Tims China is doubling down on its sub-franchise strategy as the Canadian coffee chain’s master licensee in China seeks a path to sustainable profitability in one of the world’s most competitive coffee markets. The company is closing underperforming outlets while rapidly expanding its franchised network across new cities and high-traffic locations.

The operator of Tim Hortons in China reported a 4.9% year-on-year revenue decline in the second quarter of 2025, falling to RMB 349m ($48.7m). The drop was largely driven by a 12.5% contraction in sales from company-operated stores, following the closure of 49 outlets during the three-month period ending 30 June, including 41 small-format Tims Express locations.

Despite the top-line decline, the strategic retreat yielded financial relief. Adjusted corporate EBITDA returned to positive territory at RMB 2.2m ($300,000), a turnaround from a RMB 29.3m ($4m) loss in the previous quarter. Adjusted net loss narrowed 16.2% year-on-year to RMB 39.7m ($5.5m), while net loss from continuing operations fell 24% to RMB 75.9m ($10.6m).

At the end of June, Tims China operated 1,015 stores nationwide, with 566 company-operated and 449 franchised outlets. The franchising model is emerging as a key growth engine: franchised store revenues surged 50% year-on-year to RMB 67.1m ($9.4m), supported by aggressive expansion into transport hubs, hospitals, and universities.

“Leveraging several franchisee partnerships, we expanded our store footprint into 98 cities, including Zibo in Shandong, Lishei in Zhejiang, Luan in Anhui, and Jincheng in Shaanxi,” said Yongchen Lu, CEO of Tims China.

However, challenges remain. Like-for-like sales across company-operated stores fell 3.6%, with transactions down 3.2% and average ticket size shrinking 6.9% year-on-year, underscoring pressure on consumer spending and brand positioning in China’s crowded coffee landscape.

The second quarter marked the fifth consecutive year-on-year decline in group revenues, yet management views the franchising shift as a pathway to long-term stability. By reducing exposure to loss-making outlets and capitalizing on franchise partnerships, Tims China aims to balance expansion with profitability — a strategy increasingly favored by global coffee chains navigating China’s competitive market.