Starbucks ends 6-year Gen Z experiment after finding proof that human connection is better

Retail·StarbucksStarbucks ends 6-year Gen Z experiment after finding of that human connection is betterBy Nick LichtenbergBy Nick LichtenbergFortune Intelligence EditorNick LichtenbergFortune Intelligence EditorNick Lichtenberg is Fortune Intelligence editor and was formerly Fortune's executive editor of global news.SEE FULL BIO Does Gen Z want the human touch?Zhang Peng/LightRocket via Getty ImagesStarbucks 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, -driven model that defined much of the chain’s recent expansion

The coffee giant will convert or close apximately 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 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

Analysts point to customer fatigue with impersonal, -centric transactions and “soulless” atmospheres, especially as competitors offer new forms of hospitality and engagement

The company remains committed, according to Niccol, to enhancing digital and mobile experiences through nical upgrades to the Starbucks app and its Rewards gram, set for rollout in 2026

But Starbucks’ other actions are suggesting that these experiences shouldn’t feel mobile

Niccol argued on the call that customer-value perceptions are near two-year highs, and they’re driven by gains among Gen Z and millennials, who make up over half of Starbucks’ customer base

It shows that younger consumers wanted more warmth than previously thought

The chain’s new totype stores—already being piloted in New York City—reintroduce cozy chairs, power outlets, and large tables, fostering a more communal and linger-friendly environment

Niccol said some mobile-only stores will get converted to this new setup, where it makes sense. “We plan to complete an evaluation of our North American portfolio by the end of this fiscal year to ensure we have the right coffee houses in the right locations to drive fitability and der the Starbucks experience,” Niccol said on the earnings call

Starbucks is also piloting smaller-format stores with limited seating to blend convenience with a sense of place—another sign the brand isn’t abandoning quick service, but is instead recalibrating its apach

As the company prepares to sunset its transactional pickup model, Starbucks is doubling down on its legacy: coffee shops as community anchors, not just efficiency engines

The era of the “app-only” Starbucks is ending, as the company bets that its future lies in connection, not just convenience

It involves a revamped barista dress code featuring, yes, the green an, but also emphasizes 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 spoke with CNBC earlier this week and also offered thoughts on how the company views Gen Z

He argued in favor of an apach the company describes as “hospitality” and, when asked evolving “social cues,” he described how Starbucks is working to lean into a more subjective experience. “Connection is different things to different people,” he said, arguing that Starbucks baristas are well positioned “to understand what each individual customer wants in that moment in time.” In other words, Starbucks is risking a collision with the “Gen Z stare,” because it’s working to make sure that the human connection is front and center in its

When reached for , Starbucks referred Fortune to the earnings report and Niccol’s s on the analyst call

For this story, Fortune used generative AI to help with an initial draft

An editor verified the accuracy of the information before publishing

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