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. These new locations will reflect customer behaviour shifts and be predominantly drive-thrus or to-go counters and stores.
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.
In addition, another announcement was made to close 100 US stores and 100 Canada locations, increasing the number of closings to 600.
The closings won’t reduce the number of North American Starbucks locations. Instead, Starbucks will open more stores at once.
Starbucks is closing its store in dense, urban areas.
Still, locations have yet to be announced. However, these areas will not only include highly-trafficked places like campuses and malls.
With that, these locations have seen a decline in traffic due to the pandemic and changing customer preferences.
Prior to the pandemic, pick-up was the preferred method of delivery. This trend has only grown since.
Starbucks Is Closing Stores
Starbucks is closing hundreds of locations in North America, but it’s not due to downsizing or retrenchment.
Starbucks’ closings won’t be replaced by opening new stores, mostly in drive-thrus, and to-go locations.
Thus, these stores are closing and will be replaced in a better location by models that perform at a higher level.
These two things are the main reason for the shift. Starbucks believes that the new formats of stores will be more efficient, and therefore more lucrative.
Second, closings indicate changes in customer preferences regarding delivery services and takeaway.
As an example, up to 80% of sales at the 15,000 Starbucks stores in the US come from orders-to-go.
This trend will be the determining factor in the placement of Starbucks new locations.
The fundamental Starbucks values, convenience and quality, will be preserved in the new formats.
What’s The Plan For The New Starbucks Stores?
Starbucks Store Closings Are Not New. About 100 Starbucks locations are shut down each year, based on their performance.
Recent closings, however, are much more extensive and driven by changes in sales patterns and customer behaviour trends.
The closing and opening of stores shows a change away from Starbucks’ cafe model and towards take-out and delivery.
However, shopping habits change as individuals adapt to pandemic circumstances and work from home.
Since the number of morning commuters has declined, Starbucks stores have seen a corresponding reduction in morning traffic.
However, this decline in morning numbers at Starbucks is compensated by mid-morning, afternoon, and weekend customers.
Also, there’s been a shift in sales from urban metro to suburb populations. There has been an increase in the number of people who choose to drive than sit at a cafe.
The shift in customer preferences towards delivery and to-go is also due to the mobile ordering option and Starbucks delivery via Uber Eats.
Is This What The New Starbucks Locations Will Look Like?
Starbucks will consider this change in customer behavior when opening new Starbucks shops.
Starbucks will add more double-lane drive thrus to its new stores, as well as curbside pick-up and walk-up windows for urban centers.
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.
This means that ordering and making payments through your mobile app is much more efficient and quicker.
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. 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 has announced that it will be closing 600 stores across North America by 2022.
Starbucks will however open a greater number of stores, so that Starbucks’ total retail outlets will grow.
That said, the new stores will be in locations and formats that reflect changing customer behavior and sales trends.
These trends indicate a shift from cities to suburban areas and to cafes for takeout and delivery.
Starbucks will still be present at the new Starbucks locations, emphasizing its values of quality as well as convenience.
Starbucks Closes In 2022
Starbucks will close 600 North American stores by 2022, according to its announcement. Starbucks will however open an equal- or greater amount of new stores during this period. This will result in a rise in Starbucks’ total retail outlets.
Why Are So Many Starbucks Stores 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. The coffee chain says the reason comes down to COVID.Feb 4, 2022
Why Are Starbucks Closing In Vancouver?
Coffee giant Starbucks is closing down some stores in Burnaby, Canada’s Lower Mainland, and other areas. It reduces its footprint by focusing on high-traffic spots. Burnaby Starbucks devotees are becoming increasingly upset.
Starbucks is closing its Canadian business?
Starbucks is closing many of their Canadian locations, and the company announced the closure of 144 stores in 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)