Starbucks is taking a drastic step to reverse its falling sales. The coffee chain plans to abandon its line of takeout-only “Starbucks Pick Up” locations, which exclusively fulfill mobile orders through the Starbucks app. Though Starbucks has opened 96 Pick Up locations across the country since 2019, its new CEO, Brian Niccol, says the pick up-only model no longer serves the company’s vision. The closures come after nearly a year and a half of steadily declining sales, caused in part by the company’s shift away from its “third space” model, which encourages customers to spend time in the café, to focus on mobile and drive-thru customers. Beyond introducing new products like protein drinks, Niccol is now attempting to reverse the company’s losses by returning to the third space model. While the mobile app isn’t going anywhere, the company is remodeling nearly 1,000 cafes with comfier seating, more power outlets, and larger tables, and now requires employees to write uplifting messages on every drink cup. The CEO hasn’t announced what will become of the 96 storefronts he plans to close. However, he recently shared plans to pilot a “small format” version of the cafes, which will contain just 10 seats.
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