Starbucks has decided its stores that only accept mobile orders for pickup are not the right vibe for its rebrand, reported The Wall Street Journal.

“The company operates around 80 to 90 locations, some of which are in office buildings, that don’t offer seating and are designed to get customers out quickly. Some locations could be converted to locations with seats,” wrote the outlet.

“We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,” Chief Executive Brian Niccol told investors on a recent earnings call.

The chain has started work on a prototype “coffeehouse of the future” with 32 seats and a drive-thru that it expects to open in its next fiscal year, he said.

Chief Financial Officer Cathy Smith told investors that Starbucks is investing more than $500 million to increase staffing in its U.S. company-operated stores in the next year.

Business conditions aren’t getting any easier, wrote the Journal. Smith cautioned investors of an uncertain consumer environment ahead and said the company was taking a conservative position on its results for the current quarter. Both the tariff environment and coffee prices are dynamic, Smith said, adding that executives were confident the company’s finances would improve in 2026.

Niccol said the turnaround under way at Starbucks is “ahead of schedule.” Stores involved in a pilot program, meant to improve the customer-service experience, have reported an improvement in service times and sales, Niccol said.

The company is also reportedly testing new technology to try to speed up and better schedule orders, as well as introducing on-trend menu options like protein-infused cold-foam beverages.

The QSR has been working on simplify its menu and return to being a “third space” over the last several months.

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