Starbucks ends 6-year Gen Z experiment after finding proof that human connection is better
Starbucks CEO Brian Niccol is closing a convenience that was explicitly targeted toward Gen Z’s taste for “frictionless” experiences: their mobile-only “pickup” stores. The move signals a deliberate shift away from the high-speed, tech-driven model that defined much of the chain’s recent expansion. The coffee giant will convert or close approximately 80 to 90 of these mobile order-only locations nationwide by the end of 2026, Niccol said on Tuesday’s earnings call with analysts, 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.
Announcing the closures, Niccol was direct about the rationale on Starbucks’ Tuesday call with analysts. “We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,” he said.
Built primarily in urban centers, airports, and hospitals, these stores were designed to maximize convenience—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.
The move comes amid a period of challenge and transition for Starbucks. Sales at stores that have been open for at least one year have declined for six straight quarters, with North American sales have dropped 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. It’s also a tricky needle to thread, as Starbucks disclosed in its earnings that 31% of all transactions are mobile, making it a critical part of the business.
| by Anonymous | reply 16 | August 1, 2025 5:14 PM
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I wonder when they will introduce 'frictionless experiences' in hair salons to cater to the wimpy Zoomers who are afraid to make eye contact with another human being ?
| by Anonymous | reply 1 | August 1, 2025 12:04 PM
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Will Urgent Cares facilities, ERs and doctor's offices all offer 'frictionless experiences' for the Zoomers ?
| by Anonymous | reply 2 | August 1, 2025 12:07 PM
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Zoomers don't want to go back to real interactions. That's just a fantasy they have - they're not actually prepared for it. Not a smart move when Luckin is entering the market.
| by Anonymous | reply 3 | August 1, 2025 12:09 PM
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R3, they are not eliminating online orders; they're just adding the original concept of the Third Place. You can still grab and go if that's what you want. I always considered Starbucks a great place for introverts. You can sit right in the middle of the store, watch the interaction at the counter, watch other customers, all that without interacting with any of them.
| by Anonymous | reply 4 | August 1, 2025 12:29 PM
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"Does this, like, mean I have to, like, talk to a person to get my, like, latte? Or, like, look at them? I'm so afraid this could trigger my Social Anxiety Disorder big time."
| by Anonymous | reply 5 | August 1, 2025 12:54 PM
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^ It's probably less funny when you actually do suffer from anxiety disorder.
| by Anonymous | reply 6 | August 1, 2025 1:16 PM
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From the article:
[quote] Niccol was direct about the rationale on Starbucks’ Tuesday call with analysts. “We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,” he said.
Yeah right. The only warmth and human connection in Starbucks is when they put asking for tips in the machines. In fairness, back in the 90s it was better.
| by Anonymous | reply 7 | August 1, 2025 2:29 PM
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I never saw much of starbucks in the 90s but I can imagine
| by Anonymous | reply 8 | August 1, 2025 2:36 PM
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It's the prices and burnt coffee, dumdums. Fix those.
| by Anonymous | reply 9 | August 1, 2025 2:38 PM
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It's not the "burned" coffee. They always did it. And previous successes in sales in the first forty years apparently weren't impacted by it. So that cannot be a reason for the sinking sales in the recent four years.
| by Anonymous | reply 10 | August 1, 2025 4:07 PM
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People associate over-roasted coffee with quality which has been very profitable for Starbucks.
| by Anonymous | reply 11 | August 1, 2025 4:13 PM
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except now people have been exposed to very bespoke coffee so the burnt coffee is attracting no young people with taste.
| by Anonymous | reply 12 | August 1, 2025 4:25 PM
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"GenZ" is not synonymous with the outspoken minority that demands bs like that - the same as with every generation.
| by Anonymous | reply 13 | August 1, 2025 4:27 PM
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Luckin coffee is going to eat their lunch!
| by Anonymous | reply 14 | August 1, 2025 4:35 PM
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[quote] People associate over-roasted coffee with quality which has been very profitable for Starbucks.
People drink what they like. If that's what they like to drink then that's what Starbucks sells. Starbucks has sold so many varieties since its beginnings. I am sure they would have discontinued heavily roasted coffees for lighter roasts by now if people actually had shunned the heavy roasts. But apparently people like it.
Also: Who is to say what coffee is good and what is bad? When you travel to other countries you notice that they all prefer different types and flavors. I would not tell them that their coffee is bad just because I don't like it.
| by Anonymous | reply 15 | August 1, 2025 4:39 PM
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Luckin sounds terrible - all stupid flavors and sugar, all via the app. It's tailor-made for Gen Z.
| by Anonymous | reply 16 | August 1, 2025 5:14 PM
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