Starbucks Closing Mobile-Only Stores After Finding Its Gen Z-Targeted Experience More Soulless Than “Frictionless” – CoffeeTalk

Starbucks CEO Brian Niccol is closing its mobile-only “pickup” stores, targeting Gen Z’s preference for “frictionless” experiences. The move signals a deliberate shift away from the high-speed, tech-driven model that defined much of the chain’s recent expansion. The company will convert or close approximately 80 to 90 of these mobile order-only locations nationwide by the end of 2026, marking the end of a six-year experiment that catered to on-the-go customers who seemed to prefer mobile ordering to lingering over a latte.

The closures are driven by the company’s belief that the format was overly transactional and lacking the warmth and human connection that defines the brand. These stores were designed primarily in urban centers, airports, and hospitals, built to maximize convenience with no cash registers, limited or zero seating, and an efficient grab-and-go experience orchestrated through the Starbucks app. Starbucks wants to bring back the warm coffeehouse.

Sales at stores that have been open for at least one year have declined for six straight quarters, with North American sales dropping by 2% most recently. Analysts point to customer fatigue with impersonal, tech-centric transactions and “soulless” atmospheres, especially as competitors offer new forms of hospitality and engagement. Starbucks remains committed to enhancing digital and mobile experiences through technical upgrades to the Starbucks app and its Rewards program, set for rollout in 2026.

Starbucks is also piloting smaller-format stores with limited seating to blend convenience with a sense of place, as part of Niccol’s $500 million “Green Apron Service” initiative. This initiative aims to restore “hospitality” to the center of its business, including a revamped barista dress code featuring a green apron but also emphasizing personalized service. Starbucks believes this is what Gen Z really wants, not a frictionless mobile order that barely involves interacting with a human.

Starbucks COO Mike Grams argued in favor of an approach the company describes as “hospitality” and described how Starbucks is working to lean into a more subjective experience. In other words, Starbucks is risking a collision with the “Gen Z stare,” because it is working to make sure that the human connection is front and center in its business.

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