Starbucks to make closure of 34 locations across New York City permanent. This decision comes in the midst of a significant restructuring effort. This decision comes on the heels of the company’s $1 billion plan to close down their operation across the country. Closures will primarily impact the Manhattan, Brooklyn, Queens, Astoria and Long Island City neighborhoods. As such, North America will experience a loss of almost 1% in net new total Starbucks stores.
In a recent earnings call, the coffee giant’s CEO, Brian Niccol, explained that this restructuring was done to focus on financial performance and the customer experience. He stated, “During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed.”
Starbucks, headquartered in Seattle, is the largest coffeehouse chain in the world, with thousands—over 300 of them in New York City alone. Other high-profile sites that will shut their doors include 261 Fifth Ave. and 309 Gold St. in Brooklyn. Even more exciting for us, 45 Hoyt St. in Brooklyn made the list. Manhattan’s high-traffic neighborhoods will be hit hard. Look for active closures at 330 W. 34th St., 219 First Ave., and Columbus Avenue.
And no, it’s not the coffee chain — Starbucks is in fact closing stores. They’re doing this at the same time that they are laying off approximately 900 workers throughout North America. This shift is the latest step in a larger effort to run a more efficient operation in response to evolving market dynamics.
The closures in New York City represent a new, bolder direction for Starbucks. The company is intent on doubling down in markets where the ability to deliver a best-in-class customer experience and achieve long-term financial viability has been a struggle. Niccol emphasized the necessity of this restructuring, noting that while the company has made “good progress,” there is still “much more to do to build a better, stronger, and more resilient Starbucks.”
Having just begun its transformation, Starbucks continues to focus on having a strong presence within key urban markets. It’s unfortunate that now loyal customers will feel the effects of these closures by visiting these once-popular—now-closed locations.
