Is Starbucks Closing Stores In 2022? (All You Need To Know)
Because of its diligence, Starbucks is closing hundreds of stores and opening new locations across North America.
Is Starbucks Closing Stores In 2022?
Starbucks announced in 2020 that it will be closing 600 stores across North America over the next year and a half as of 2022. The closings won’t be the last. New stores that perform well will open. Changes in customer behavior have led to new locations that will be more drive-thrus-oriented and sell-to-go products and counters.
Starbucks Is Closing Stores in North America
Starbucks declared in June 2020 it was closing 400 stores in America and Canada in the next 18-months.
This was further followed by an announcement of closing 100 additional stores in the US, and 100 Canadian, bringing the total number of closures to 600.
Starbucks however will soon open additional stores, which will increase the number of North American Starbucks outlets.
Starbucks will close stores in dense metropolitan areas that already contain a large number of Starbucks shops.
The exact location of the closings has not been revealed, however, they will include malls, campuses, and other high-traffic locations.
With that, these locations have seen a decline in traffic due to the pandemic and changing customer preferences.
Even before the pandemic, the trend favored pick-up and delivery orders, and it has only intensified since then.
Starbucks is closing its locations for a reason
Starbucks has closed hundreds of North American locations, but this isn’t due to downsizing.
Starbucks’ closings won’t be replaced by opening new stores, mostly in drive-thrus, and to-go locations.
Therefore, stores closing will be replaced with more performant models located in other areas.
This shift is essentially due to two factors. Starbucks is expecting the new format stores to be more efficient as well as more profit-making.
Second, the closings reflect changes in customer preferences for takeaway services, delivery, and curbside pick-up.
There are 80% to 80% of the sales in 15,000 Starbucks shops across America that were made from ready-to-eat orders.
This will drive the location of new Starbucks locations.
However, these new locations will not compromise the Starbucks core values of convenience or quality.
Where are the New Starbucks Stores Going?
Starbucks Store Closings Are Not New. About 100 Starbucks locations are shut down each year, based on their performance.
However, recent closings are on a much larger scale and are driven by changing sales patterns and trends in customer behavior.
Effectively, the store closings and openings show a shift away from the Starbucks cafe model to takeaway and delivery locations.
However, people adjust to changing pandemic conditions by continuing their work at home and change their shopping preferences.
Starbucks stores see a reduction in morning traffic as a result of fewer morning commuters.
Starbucks has seen a decline in customers during the morning, but this is made up by afternoon, mid-morning, and weekend sales.
The shift from the urban to the suburbs has seen a change in sales. On top of that, there’s been a shift from typical cafe frequenters that prefer seating to drive-thrus.
Customers are shifting to to-go delivery and mobile ordering thanks to Starbucks Delivery via Uber Eats and mobile ordering through Starbucks.
How will the new Starbucks locations look?
The new Starbucks stores consider these changes in customer behavior, and the new locations will take them into account.
Starbucks’ new locations will offer more double-lane drive throughs, curbside pickup, and walkup windows in metro areas.
Also, the new locations will include new Starbucks pick-up stores where customers can only order and pay only through the Starbucks app.
This is also due to increased customer engagement at Starbucks, which was impacted by the pandemic.
With that, ordering and payments exclusively through the mobile app makes the whole process much quicker and more streamlined.
Additionally, there’s already a Starbucks pick-up store operating at Penn Station in New York City since 2019.
Starbucks also offers curbside pick up, which has proven to be very popular. Expect to see these formats more often.
Read our blog posts to learn more on Starbucks statistics & data, the hours Starbucks open, and how you can get there in 24 hour.
Starbucks will shut down 600 North American Starbucks stores by 2022, according to the announcement.
Starbucks will also open additional locations in equal or greater numbers, so there will be an increase in Starbucks stores during this period.
These new stores are located in formats and locations that will best reflect current customer behaviours and selling trends.
So, these trends show a shift away from urban metros to suburbs and cafes to takeout and delivery options.
The Starbucks brand values of convenience and quality will be maintained at all new Starbucks locations.
Is Starbucks Closing In 2022?
Starbucks has announced that it will be closing 600 stores across North America 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 has been told that a Starbucks representative said the company’s decision to decrease hours and close some stores in the Bay Area is necessary to safeguard customers as well as workers. SAN FRANCISCO – Finding a cup of coffee to start the day is getting a little harder for Starbucks fans. According to Starbucks coffee chain, it is due to COVID.February 4, 2022
Why Are Starbucks Closing In Vancouver?
In order to reduce its footprint and focus more on specific high-traffic areas, the coffee giant is steadily closing its stores across Burnaby. Burnaby Starbucks devotees are becoming increasingly upset.
Can Starbucks close its doors in Canada?
So many Starbucks cafes across Canada are also shutting down shops, with the company announcing that 144 stores are set to be closed by the end of March 2021. It is part in a plan to shutter 200 Canadian locations within 18 months.
.Is Starbucks Closing Stores In 2022? (All You Need To Know)