Starbucks, the world’s most recognizable coffee chain, has once again found itself at the crossroads of expansion and retrenchment. On August 8, 2025, the Seattle-based giant announced it was canceling plans to open a highly anticipated community store in North Philadelphia, dealing a blow to a neighborhood that had been counting on the new location for jobs and a gathering space. The move marks the second time Starbucks has reversed course on opening a store aimed at serving an underserved area in Philadelphia, raising questions about the company’s broader strategy for community engagement and its evolving approach to store formats nationwide.
According to Axios, the North Philly community store had originally been slated to open in 2024, but rising construction costs delayed the project. Starbucks’ community stores are designed to reflect the unique culture and character of their neighborhoods, featuring spaces for local events and programming. The company also promises to hire diverse construction contractors for these projects, aiming to create a positive economic ripple effect in the communities they enter.
Yet, despite the lofty intentions, Starbucks has now pulled the plug. A company spokesperson cited construction costs as the main reason for abandoning the North Philly store. This isn’t the first setback for the chain’s community store ambitions in the city. Plans to open a similar location in West Philadelphia’s ParkWest Town Center were scrapped during the pandemic, and last year, Starbucks shuttered a community store in Trenton, New Jersey.
The latest reversal comes as Starbucks quietly backs away from its 2022 pledge to open 1,000 community stores globally by the end of the decade. While the company has not explicitly abandoned the idea, its actions suggest a significant scaling back of its original ambitions. Meanwhile, Starbucks is expected to open three new stores elsewhere in Philadelphia by the end of the summer, including a long-awaited Fishtown location at 1405 Frankford Ave.—just steps from the flagship store of local favorite La Colombe Coffee Roasters.
But the story doesn’t end with Philadelphia. Starbucks is in the midst of a nationwide shake-up, announcing on August 8 that it will close more than 80 stores across dozens of states—including several in Texas and at least one in Oregon. These closures are part of a broader retreat from the company’s pick-up only store model, which CEO Brian Niccol described as “overly transactional and lacking the warmth and human connection that defines our brand.” Speaking on a July 29 earnings call, Niccol explained that some pick-up only stores will be permanently shuttered, while others will be converted into traditional coffeehouses with seating and community spaces.
“We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,” Niccol told investors, according to USA Today. The pick-up only stores, which were introduced in recent years to cater to the mobile order boom, are common in airports and downtown business districts. They are designed for speed—customers place orders via the Starbucks app or at the counter, grab their drinks, and go, with little space for lingering or socializing.
Despite the shift away from pick-up only stores, Starbucks is not abandoning mobile ordering altogether. The company says mobile orders now account for 31% of all transactions, and this popular feature will remain a core part of the Starbucks experience. “We are not moving away from mobile ordering,” a Starbucks spokesperson clarified to USA Today, seeking to reassure customers who have come to rely on the convenience of the app.
In Texas, the closures will hit locations in major cities such as Austin, Dallas, Fort Worth, Houston, Rosenberg, Waco, and Killeen. The company’s website lists pick-up only stores at 22nd and Rio Grande streets in Austin, 2401 Victory Park Lane in Dallas, 2nd and Commerce Street in Fort Worth, City Centre and Hillcroft Street & US 59 in Houston, Highway 59 and Highway 762 in Rosenberg, Interstate 35 and Valley Mills Drive in Waco, and W Rancier Avenue and N 2nd in Killeen. It remains unclear which of these will be converted and which will close for good, as Starbucks has not provided a full list of closures or timelines for individual stores.
The shake-up extends to Oregon, where the sole pick-up only Starbucks is located at the University of Oregon’s Knight Campus in Eugene. According to The Register-Guard, this location was already scheduled to close temporarily from mid-August 2025 through the following summer due to construction on the campus. Now, with Starbucks’ nationwide shift, the pick-up only store’s future is even more uncertain. The Knight Campus location opened in 2021 and was designed exclusively for mobile orders and quick pick-up, with no seating or space to linger. Students and faculty seeking caffeine fixes do have other options: the campus boasts several independent cafes and another traditional Starbucks inside the Erb Memorial Union, which offers order-in, pick-up, and take-out.
The company’s strategic pivot comes amid a broader effort to reverse declining foot traffic and sales. Starbucks has been experimenting with a range of customer-focused changes this year, from writing personalized messages on cups and bags to eliminating the extra fee for nondairy milk. CEO Brian Niccol told Axios earlier this summer that the company is doubling down on creating community spaces with more seating, hoping to recapture the sense of connection that once defined the brand’s in-store experience.
Starbucks’ retreat from both community-focused and pick-up only formats reflects the challenges of balancing operational costs, shifting consumer habits, and the company’s own brand identity. The community store model, while popular in theory, has proven difficult to scale amid rising construction costs and the lingering effects of the pandemic. Meanwhile, the pick-up only concept, born out of necessity during COVID-19, appears to have run its course, with customers and executives alike yearning for a return to the familiar hum of a bustling café.
As Starbucks retools its approach, the affected communities are left to weigh the impact. In North Philadelphia, the loss of a promised community store is more than just a business decision—it’s a missed opportunity for local jobs, neighborhood investment, and a communal gathering space. Across the country, the closure of pick-up only stores will force regulars to adapt, either seeking out new locations or adjusting their routines.
While Starbucks’ next chapter remains unwritten, one thing is clear: the company is searching for the right balance between efficiency and connection, tradition and innovation. Whether the new strategy will succeed in bringing back lapsed customers and reinvigorating its brand remains to be seen, but for now, the aroma of change is unmistakable in the air.
