Why Is Starbucks Closing Stores In 2022? – Are They Going Out Of Business?

By Phillip Adcock
Last Updated: September 7, 2022
Why Is Starbucks Closed

Starbucks has been removing hundreds of stores and building new ones across North America in recent years.

If you’ve been wondering why Starbucks has suddenly shuttered many locations, you’re not alone. This article will answer the relevant questions.

Is Starbucks Closing Stores In 2022?

Starbucks is planning to close 16 stores by the end of July 2022. Including stores in Seattle; Los Angeles; Philadelphia; Washington, DC and Portland, Oregon, because of safety concerns.

(Source: CNN)

The decision comes as Starbucks is effortlessly changing the company’s culture under interim CEO Howard Schultz

In a letter to employees Monday, Debbie Stroud and Denise Nelson, Senior Vice Presidents of U.S. Operations, discussed safety in Starbucks stores.

A resident is concerned about safety around Starbucks

The company is expanding into new markets as we speak. Starbucks has opted to mix things up a bit. Instead of closing stores and reducing its client, the company plans to build new ones.

It is mostly in the form of drive-thrus or grab-and-go restaurants. The corporation claims that superior operating models at other sites will compensate for the shop closures.

When it comes to brick-and-mortar retail stores, Starbucks plans to close 150 locations in the United States.

It is important to know that this decision isn’t based on how well this store is selling or its effectiveness. It is based on how customers want it to be. They want to order online and pick it up at the store or have it delivered. So that’s what Starbucks is doing.

Starbucks is building many stores in different places around the United States, and people wonder how they choose where to put them.

For instance, by 2020, to-go orders will account for 80 percent of all sales at 15,000 Starbucks shops in the United States?

Now put yourself in their shoes. You might now understand why many of their stores are built close to major commuting routes like courses or roads.

They’re making sure their patrons will have access to high-quality coffee on the go whenever and wherever they are.

Why are so many Starbucks stores temporarily closed?

Is Starbucks Going Out Of Business In 2022?

Definitely NOT.

Starbucks is the biggest coffee shop in the world. They sell coffee, tea, and other drinks with more than 17,400 stores in 60 countries. The first Starbucks opened in Seattle, Washington. It has a lot of stores all over the world.

They plan to close 600 locations across North America by 2022, but they are also planning to open new stores with a higher probability of succeeding.

The chance of Starbucks offering drive-thru service to its customers is based on the fact that customers want faster service. People are in a hurry and don’t want to sit down, relax, and enjoy their coffee.

If they had more time, they would prefer to sit down and enjoy it, but people are in a hurry, so they don’t have time to sit down and enjoy their coffee.

Is Starbucks In North America Closed?

Is Starbucks In North America Closed

Starbucks stated in June 2020 that it would remove 400 shops in the United States. Over the next 18 months, it will also remove 100 stores in Canada and 100 in both nations. That implies it will only have 600 shops remaining by 2023.

Many people might not know that Starbucks is closing down several stores in some dense metro areas. They will be opening up even more locations in the same city, and they are doing this to avoid saturating the market.

Although the exact list of stores that will be closed remains unreleased, those stores will include high traffic and featured spots like malls, campuses, and buildings.

New Future Plan For Starbucks Stores?

Starbucks shop closures are not unexpected. Starbucks closes around 100 stores each year due to performance difficulties or aesthetic considerations.

However, recently the coffee giant has been closing an overwhelming number of stores to build up its mobile app. People are so used to ordering drinks now that they think that walking into a Starbucks is inconvenient!

That said, many people now tend to take their coffee at home from Starbucks’ coffee shops or other stores on the corner rather than commuting to their offices in the mornings.

They will naturally see a corresponding drop in morning traffic and an increase in the rest of their going-out hours.

Recent data indicates sales at Starbucks have been going down. People are buying more coffee in the afternoon and on the weekends.

According to recent trend research, sales are transferring from the metro to suburban populations. To-go alternatives are preferred, depending on preferences for the delivery service Uber Eats.

Where Is The New Starbucks Located?

Starbucks recently announced plans for a new kind of store. These stores will be bigger than the other stores and have a drive-thru. That means you can drive your car up to the store, and they will bring your coffee to you. It will be very convenient for customers.

The new Starbucks will feature two drive-thrus, two curbside pickup lanes, and walk-up windows in urban areas where most customers are millennials who are always on the run.

Mobile payments are widely used at Starbucks because it is vital to connect with consumers who are more engaged in digital media and an increasing amount of mobile app users. Moreover, consumers can now order and pay securely through their mobile phones.

The plus side is that this leads to shorter ordering lines, speedier transactions, and more secure payment options.

Starbucks is well-known for its coffee. But, if you’re a tea drinker, don’t fret, as, in 2019, they opened up the first Starbucks tea bar, which serves high-end loose leaf teas and food and drinks made with these high-end loose leaf teas.

Further, curbside pickup is set to be another big win for Starbucks. Their customers who just bought their daily coffee have taken to this quick and easy way of grabbing a coffee before work or school.

Conclusion

After all, some people might wonder about the story of Starbucks closing a certain number of stores across North America. The coffee giant will be opening just as many new locations, which will increase its total number of stores over the next five years!

What other factors influenced this decision? Starbucks may change customer behavior, and sales trends play an important part in its decision.

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* Disclaimer: We do not buy, sell or provide service, we only share with you our trusted sources, and experience. In case of any changes in the products or services of the companies, all the information below is supposed to change at any time.

Phillip Adcock is the founder and Managing Director of the research agency Shopping Behaviour Xplained (SBXL), a shopping research organization using psychological consumer insight to explain and help consumers answer their questions about stores and services.

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