Starbucks Corp. is investing in improving its brick-and-mortar experience as part of its turnaround strategy under CEO Brian Niccol. The coffee giant plans to sunset its mobile order and pickup only concept in fiscal 2026. “We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,” Niccol said. “We have a strong digital offering and believe we can deliver the same level of convenience through our community coffee houses with a superior mobile order and pay experience. “ Starbucks has been working on the “coffee house of the future,” Niccol told analysts, and has a new standalone prototype that will open next year. It boasts 32 seats, a drive thru and costs roughly 30% less to build. A small format version of the prototype with approximately 10 seats will open in New York City in the next few months. “We believe this new prototype will deliver an exceptional customer experience, improve unit economics and unlock growth opportunities in more markets,” Niccol said. Starbucks slowed new builds and major renovations to prioritize a new coffee house “uplift” program, with a target investment of approximately $150,000 per store and minimal to no downtime. The uplifts are intended to quickly replace thousands of seats the chain removed and introduce greater texture, warmth and layered design, Niccol said. The program, accelerating now in New York City, will be expanded to Southern California later in the fourth quarter. By the end of calendar year 2026, Starbucks will have completed at least 1,000 uplifts across North America, according to Niccol.