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Starbucks doesn’t want to be on every street in New York and Los Angeles anymore
Starbucks is closing 400 urban stores as remote work and competition reduce foot traffic; 42 New York locations closed amid a $1 billion shift to suburban drive-throughs.
- This year, Starbucks is closing roughly 400 stores concentrated in large metro areas as part of a $1 billion restructuring and expanding suburban drive-through formats.
- After years of saturation, executives note Starbucks' urban strategy backfired as competition from niche coffee and beverage competitors and remote-work shifts reduced downtown traffic.
- New York City recorded 42 closures as part of roughly 400 this year, while shares of Starbucks dropped around 6% and sales have stagnated in recent years.
- To win back sit-down customers, Starbucks will renovate 1,000 stores next year with seating and power outlets and ended its open hangout policy this year, CEO Brian Niccol said.
- Next year, the company roadmap includes planned openings and remodels next year in major metros as part of Brian Niccol's turnaround program, but analysts and operational challenges warn improving store operations remains the bigger hurdle.
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Coverage Details
Total News Sources9
Leaning Left1Leaning Right1Center5Last UpdatedBias Distribution72% Center
Bias Distribution
- 72% of the sources are Center
72% Center
14%
C 72%
14%
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