Starbucks is moving some stores to the suburbs — because Americans want drive-thrus
There’s more bittersweet news for Starbucks lovers.
Despite reports the coffee chain was closing an additional 100 stores, the company says it’s actually growing and plans to open approximately 850 new locations in the Americas, according to an earnings report obtained by McClatchy News.
The plan allows for a net gain of 50 new U.S. stores in fiscal year 2021, according to the October earnings report.
The news comes months after Starbucks announced it would close 400 stores in the U.S. as the company shifts its focus to drive-thru and on-the-go options for consumers. The company hasn’t said which locations it plans to shutter, however Starbucks executives said there’s an effort to move away from urban centers and set up shop in suburbia.
It’s part of the brand’s “trade area transformation initiative” aimed at replacing old stores with new ones in areas where they can better respond to changing consumer habits, company leadership explained on an earnings call last month.
“Broadly speaking, we’ve seen U.S. transactions migrate from dense metro centers to the suburbs, from cafes to drive-thrus, from early mornings to mid-mornings with outpaced recovery on the weekends,” Starbucks CEO Kevin Johnson said, according to a transcript. “We’ve adjusted our operations to match these new customer behavior patterns, including multiple new protocols to provide a safe experience for our partners and customers.”
Officials said the expected closings will also make way for the creation of new, efficient store layouts that offer customers more convenience.
Starbucks previously announced plans to expand its “convenience-led formats” amid the COVID-19 crisis, including new pickup-only stores in cities like Seattle, Chicago and New York City.
The company also plans to put more drive-thrus and walk-up windows in suburban areas, according to a news release.
“Starbucks stores have always been known as the ’third place,’ a welcoming place outside of our home and work where we connect over a cup of coffee,” Johnson said in June. “As we navigate through the COVID-19 crisis, we are accelerating our store transformation plans to address the realities of the current situation, while still providing a safe, familiar and convenient experience for our customers.”
Starbucks CFO Patrick Grismer said the changes stand to put the coffee giant in “a much more profitable position” and “structure the business for stronger growth going forward.”
This story was originally published November 5, 2020 at 1:52 PM with the headline "Starbucks is moving some stores to the suburbs — because Americans want drive-thrus."