Starbucks has always said that its goal is to be your “third place.” The idea is that it’s the other place you go between home and work. It’s where you go to hang out with your friends, get some work done, study for an exam, or just read a book. Of course, being a third place means being a place where people want to hang out.

Starbucks shares rose about 3% in early trading on Wednesday as the coffee chain's strong quarterly sales signaled CEO Brian Niccol's turnaround plan was bearing fruit.

The coffee giant is walking away from a format it once bet big on: the mobile-order-only store, dubbed “Starbucks Pick Up.” Around 80 to 90 of these stripped-down locations — places with no seats, no counter, and barely a presence — are being shut down through 2026.

The firm's boss made the comments after it revealed that same-store sales had fallen for a sixth quarter in a row.