For years, Starbucks worked to establish itself as an indispensable presence on the streets of New York, Los Angeles, and other major American cities. That is now coming to an end.
There was a time when its growth appeared endless. Even so, it was a joke. “New Starbucks Opens In Rest Room Of Existing Starbucks” was the title of an Onion article in 1998. A few years later, comedian Lewis Black claimed to have visited the “end of the universe” in Houston, when he witnessed two Starbucks right next to each other.
However, due to competition, the rise of remote work, and rising expenses, Starbucks’ strategy of flooding urban areas to attract coffee drinkers on their way to work has backfired. To revitalize Starbucks, CEO Brian Niccol, who was hired from Chipotle last year, no longer wants its locations to be adjacent. As part of its $1 billion reorganization strategy, Starbucks closed about 400 locations nationwide, most of which were in major cities.
42 Starbucks shops, or 12% of the company’s total, were closed in New York. According to the Center for an Urban Future, a New York City think tank that monitors chain openings and closings, it recently lost its position as the biggest chain in Manhattan to Dunkin’.
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