Starbucks’ next big design move takes aim at its small-footprint stores

FastCompany: New Starbucks coffeehouses are getting smaller. The coffee chain announced Tuesday that it’s rolling out store concepts with a smaller physical footprint. Prototypes of the new coffeehouse opened last year in New York City and last month in San Antonio . Starbucks said it was exploring the new concept because it can be adapted to smaller locations and different sizes and shapes, and yet still be inviting for customers. [Photo: Starbucks] As one of the largest chains in the world with more than 29,000 retail stores, Starbucks has a lot of real estate, and it’s rethought the footprint of its shops constantly in recent years.

Its latest concept shows the company sees more and smaller coffee shops, designed to be inviting to guests, as key to growing revenue. [Photo: Starbucks] The new, smaller cafés have a shortened counter. A more compact glass case for displaying bakery and food items is located directly in front of customers at the point of sale. There are different seating layouts depending on the location. A tiny urban coffeeshop inside a former mobile-only shop that’s been converted might have seating for only a few people, while a larger location can fit plush seating and tables with room for multiple people to work on laptops at a time.

[Photo: Starbucks] Photos that Starbucks released of the new concept show a location decorated with dark green walls and wood accents. Touches like plants and side tables with knickknacks give the space an inviting, homey feeling. An awning out front shades a patio with outdoor seating. [Photo: Starbucks] Starbucks introduced mobile-only locations in 2019 but closed them last year as part of a pivot and turnaround plan. The chain calls this “Back to Starbucks,” and it aims to make coffeeshops more inviting under CEO Brian Niccol , who joined in 2024.

[Photo: Starbucks] “Back to Starbucks” has included things like bringing back handwritten notes on coffee cups , big comfy chairs , and a revived employee dress code . In addition, existing stores are being “uplifted” by adding more seats and making them more comfortable. Each uplift, or renovation, costs about $150,000. But for the company, it’s an investment about creating a better experience that doesn’t feel so transactional for customers and welcomes visitors back. [Photo: Starbucks] “Great execution creates better experiences, which drives repeat visits and fuels growth,” Mike Grams, the chief operating officer, said in a statement.

Starbucks said Tuesday at its 2026 Investor Day that under its uplift program, it will add more than 25,000 café seats to its stores by the end of the fiscal year. And though Starbucks said last month it would close about 250 stores in North America , Grams says that looking ahead, the company expects to build 400 net-new coffeehouses across the U.S. in 2028.

Starbucks' new design concept for smaller stores represents a significant shift in retail strategy that could influence industry standards, while also providing actionable insights for brand strategists focused on customer experience.