• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
RetailStarbucks

Starbucks speeding up rollout of pickup-only stores in response to pandemic

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
June 10, 2020, 11:15 AM ET

Subscribe to How to Reopen, our weekly newsletter on what it takes to reboot business in the midst of a pandemic.

Smaller is likely to be better for Starbucks when it comes to a chunk of its future fleet of cafés in the wake of the COVID-19 pandemic.

The coffee shop giant said on Wednesday that it is fast-tracking its plan to build a sizable fleet of U.S. and Canadian Starbucks Pickup stores, smaller locations where customers can only collect a mobile order placed ahead of time but not sit, within 18 to 24 months. That is faster than the initial goal of three to five years and reflects what is expected to be the public’s enduring wariness of sitting in close quarters in cafés, coupled with the original goal of faster and more efficient service, particularly for rush-hour customers in big cities.

“This strategy aligns closely with rapidly evolving customer preferences that have accelerated as a result of COVID-19, including higher levels of mobile ordering, more contactless pickup experiences and reduced in-store congestion, all of which naturally allow for greater physical distancing,” Starbucks chief executive Kevin Johnson and finance chief Patrick Grismer wrote in a letter to investors and employees.

As of now, the company has only a pair of Starbucks Pickup locations up and running, one near New York’s Penn Station, a major transportation hub, and the other in Toronto. A third, at New York’s Grand Central Terminal is coming soon. While Starbucks had planned to fine-tune the concept before expanding it, the company is now putting its foot on the gas to roll them out.  

All told, Starbucks plans to renovate or move 400 traditional cafés in the U.S. and Canada in the next 18 months, many of which will be turned into pickup stores. In addition, the company aims to open 40 to 50 new pickup-only stores in that time. Some 80% of Starbucks’ U.S. transactions were on-the-go (mobile orders and drive-thru) prior to the pandemic, and that has risen to more than 90% now.

As much as Starbucks has touted its cafés as “third places,” where people can relax in a venue that is neither home or the office (which today are one and the same for millions of Americans), and has opened a few lavish Roastery stores, the truth is that harried commuters and office workers at rush hour just want to get their coffee and food and go. And Starbucks’ push toward dedicated spaces for mobile orders inside its stores and the new store concept even before the pandemic were a recognition of the frustrating bottlenecks many people experienced at Starbucks as they waited for several minutes for things like a blueberry muffin.

Ultimately, the pickup stores will be focused on larger metro areas and located near its regular cafés in a hub-and-spoke model, so if someone does want to sit while having their Starbucks products, that person can do so.

For now, the company’s strength in mobile ordering—the adoption of which Starbucks expects will hit a higher percentage permanently—has mitigated some of the disastrous effects of having stores closed for weeks. Yet, even though the vast majority of its stores in the U.S. have reopened for curbside pickup, business remains slow: Comparable store sales fell 32% in the last week of May, most of that from drive-thru and curbside pickup. That was much better than the 65% drop a few weeks earlier but still a punishing decline. That is only spurring interest in having more productive stores.

In its letter on Wednesday, Starbucks said it expected current-quarter operating income to fall as much as $2.2 billion, with sales continuing to decline for the rest of the year despite stores largely reopening.

More must-read retail coverage from Fortune:

  • Stitch Fix’s new growth strategy: Letting non-clients shop directly, too
  • Shopping by appointment is the next big thing for retailers, but it’s no panacea
  • How Tractor Supply Co. is using tech to deliver e-commerce to its rural customers and fuel a sales surge
  • The soda market is popping with new contenders. Will they stay or fizzle out?
  • Listen to Leadership Next, a Fortune podcast examining the evolving role of CEOs
  • WATCH: The ugly toll COVID-19 has taken on retail
About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

Honda recalls nearly 900,000 cars thanks to rear suspension problems
RetailHonda
Honda recalls nearly 900,000 cars thanks to rear suspension problems
By The Associated PressJune 10, 2026
2 hours ago
Jamie Laing thinks tomorrow’s Fortune 500 will be built by creators. He might be right 
C-Suitecreator economy
Jamie Laing thinks tomorrow’s Fortune 500 will be built by creators. He might be right 
By Sam BirchallJune 10, 2026
9 hours ago
Matt Damon and Gary White.
EnvironmentWaters
Corporate America has been draining the world’s water. Matt Damon’s new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
1 day ago
Chinese beauty brands flock to Southeast Asia as their first step in going global
RetailChina
Chinese beauty brands flock to Southeast Asia as their first step in going global
By Angelica AngJune 9, 2026
2 days ago
John Furner, CEO, Walmart US
SuccessCost of living
Walmart CEO John Furner says even wealthy shoppers are now shopping at the discount grocery chain as high prices stretch six-figure earners
By Emma BurleighJune 8, 2026
2 days ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
SuccessThe Promotion Playbook
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
2 days ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
1 day ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
Investing
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
22 hours ago
Current price of silver as of Tuesday, June 9, 2026
Personal Finance
Current price of silver as of Tuesday, June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.