Is Starbucks Closing Stores In 2022? (All You Need To Know)
Starbucks will soon close hundreds of locations and open new stores throughout North America because of its diligence.
Is Starbucks Closing Stores In 2022?
Starbucks declared in 2020 it would close 600 North American locations by 2022. However, the closings will be exceeded by opening new locations that are expected to perform better. The new locations reflect a shift in customer behavior and will be primarily drive-thrus and to-go stores and counters.
Starbucks Closes North America Locations
Starbucks had announced that in the United States and Canada, it would shut down 400 shops in the coming 18 months.
Further, this was followed by another announcement to close 100 more stores in the US and 100 in Canada, bringing the total closings to 600.
Starbucks, however, will continue to open new stores in North America, so the closures will not affect the overall number of locations.
Starbucks has announced that it is closing all stores within dense urban areas. These locations already boast a lot of Starbucks outlets.
Still, locations have yet to be announced. However, these areas will not only include highly-trafficked places like campuses and malls.
These areas have also seen decreased traffic as a result of changing customer habits and the pandemic.
This trend was evident even before the pandemic. It favoured delivery and pick-up orders and it only has intensified.
Starbucks closing stores in California?
Starbucks has closed hundreds of North American locations, but this isn’t due to downsizing.
Starbucks will close all of its existing locations in favor of opening up new places, mostly to-go and drive-thrus.
The stores will therefore be closed and replaced with better performing models in different areas.
There are two primary reasons why this is happening. Starbucks is expecting the new format stores to be more efficient as well as more profit-making.
Second, closings indicate changes in customer preferences regarding delivery services and takeaway.
So, for example, as high as 80% are from already-made orders at Starbucks 15,000 locations across the US.
This trend will also determine where the new Starbucks shops are located.
However, these new locations will not compromise the Starbucks core values of convenience or quality.
Where are the New Starbucks Stores Going?
Starbucks stores closings aren’t new. Around 100 Starbucks stores close each year on the basis of performance.
The recent closings however are more widespread and result from changing trends and patterns in customer behavior.
Effectively, closings of Starbucks stores and openings indicate a move away from Starbucks cafe models to takeaway and delivery places.
However, people adjust to changing pandemic conditions by continuing their work at home and change their shopping preferences.
Starbucks stores also saw an increase in morning traffic since the decrease of commuters.
Starbucks has seen a decline in customers during the morning, but this is made up by afternoon, mid-morning, and weekend sales.
A shift has also occurred in the sales of products from cities to suburban areas. Additionally, the typical café patrons who would rather have their coffee at home than drive-thrus are also changing.
With the introduction of mobile ordering and Starbucks delivery via Uber Eats (via smartphone), customer preference is shifting towards to-go and delivery.
How will the new Starbucks locations look?
Starbucks is adapting to these changing customer habits in its new Starbucks stores.
Consequently, the new Starbucks stores will include more double-lane drive-thrus, curbside pick-up, and walk-up windows in urban metro centers.
Additionally, new Starbucks pick up stores will open at these new locations. This means that customers can place orders directly through Starbucks’ app and only pay for the order.
This could also be due to Starbucks’ increased online customer engagement and millions of mobile app users during the pandemic.
This allows for ordering and payment to be done entirely through mobile apps, making the process faster and simpler.
There is also a Starbucks pick up store at Penn Station in New York City, which has been open since 2019.
Starbucks is also trying curbside pick-up, which is becoming very popular. These new options will be more common in the future.
You can read more about Starbucks facts & statistics, happy hours, opening times, and whether Starbucks is open 24 hours.
Starbucks will shut down 600 North American Starbucks stores by 2022, according to the announcement.
Starbucks will still open new stores in an equal or higher number, so Starbucks total will rise during this period.
These new stores are located in formats and locations that will best reflect current customer behaviours and selling trends.
These trends indicate a shift from cities to suburban areas and to cafes for takeout and delivery.
However, the new locations will continue to emphasize the Starbucks values of quality and convenience.
Starbucks to Close in 2022
Starbucks recently announced the closing of 600 North American Starbucks stores by 2022. Starbucks plans to open as many new Starbucks locations or more than that, so there will be an increase in the number of Starbucks shops during this time.
What is the reason so many Starbucks Stores are closing?
KTVU hears from a Starbucks rep that the plan to cut hours or close stores in the Bay Area area is to make customers and workers safer. SAN FRANCISCO – It is harder than ever to get a hot cup of Starbucks coffee before the start of your day. According to Starbucks coffee chain, it is due to COVID.February 4, 2022
Why Are Starbucks Closing In Vancouver?
As it reduces its footprint, Starbucks has steadily closed some locations in Burnaby and the Lower Mainland. And more and more Burnaby Starbucks lovers are speaking out about how displeased they are.Sep 7, 2021
Can Starbucks close its doors in Canada?
Many Starbucks cafés in Canada have also closed their doors. Starbucks announced that it will close 144 locations by March 2021. This is part of an overall plan to close as many as 200 Canadian stores over the next 18 months. Dec 20, 2021
.Is Starbucks Closing Stores In 2022? (All You Need To Know)