Starbucks to Close Dozens of Locations in New York City

Starbucks has announced plans to permanently close 54 locations in New York City as part of a $1 billion restructuring initiative. This decision comes after a review of the company’s declining sales and aims to streamline operations across North America. The closures will affect nearly 1% of Starbucks locations in the region, with CEO Brian Niccol stating that the company identified stores where it could not meet customer expectations or achieve financial viability.

The closures will impact various neighborhoods across the five boroughs, including high-traffic areas in Manhattan such as 34th Street, University Place, and Columbus Avenue. Brooklyn will also see several shops close, including those on Atlantic Avenue and Hoyt Street. In Queens, locations in Astoria and Long Island City are among those slated for closure.

Niccol emphasized the need for the company to improve its physical environment and financial performance. "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," he said. He acknowledged that while progress has been made, more work is needed to strengthen the brand.

The closures come as Starbucks faces increased competition in the coffee market. New Yorkers, known for their love of coffee, will have to seek alternatives as they adjust to the loss of their local Starbucks. The city boasts a high density of coffee shops, with 1,744 coffee establishments and 956 cafes, making it the city with the most coffee options in the United States.

In light of the closures, many coffee enthusiasts are exploring other popular chains and local coffee roasters. Options include Krispy Kreme, which has introduced frozen lattes, and Luckin Coffee, a growing competitor known for its coconut latte. Dunkin' offers refreshing alternatives with its own line of caffeinated beverages, while Blue Bottle Coffee is recognized for its quality drip coffee and custom brews. Additionally, Blank Street Coffee has gained popularity for its unique matcha drinks.

As Starbucks continues to navigate its restructuring, customers will need to adapt their coffee routines and discover new favorites in the vibrant New York City coffee scene.