Starbucks is many people’s go-to coffee place. It is common for one to stop on a Friday morning on their way to work for a quick pick-me-up. With a high number of spread-out locations, it is quite easy to find one on the way. This weekly routine may have to change for some commuters.
Across the country, Starbucks locations are closing. This is not due to a lack of business, as many of the locations being shut down are among the busiest. Five locations in Sioux Falls and the metro area have already closed, including the location in Tea and the Harrisburg location that was under construction. Many states have upwards of 10 locations closing, with New York closing the most at 38. In total, there are more than 400 stores in the U.S. that are closing down. The closures will force many Americans to find alternatives for weekly coffee runs or to change their schedule to create more time to drive to a further location.
The reason behind the store closures is all a part of the “Back to Starbucks” plan, designed by Starbucks’ CEO, Brian Niccol. In his plan, Niccol is determined to bring back the cozy, welcoming atmosphere of Starbucks cafes. The stores that were chosen to close were not random; they were the most underperforming stores. The increase in underperformance is partially due to the expansion of many different coffee chains. Recently, both The Human Bean and 7 Brew opened here in Sioux Falls, and in the past few years, many other coffee shops have opened as well. This is increasing the competition for both sales and workers. With a decline in available employees, the friendly, welcoming environment one could once find in Starbucks coffee shops is beginning to diminish.
Many customers have also begun to voice their complaints about the establishment. High prices, never-changing core menus and inconsistent quality of drinks are some of the main reasons customers have stopped going. Once a popular spot for students to do their homework, Starbucks is now seen as a lesser option.
Niccol’s plan addresses many of these concerns and a few others. His goal is for all operating Starbucks locations to have the atmosphere customers desire by the end of 2026. Around this time next year, one may be able to return to their usual weekly stop at a friendlier, more welcoming Starbucks.
Stores closing in the Sioux Falls area:
- 1403 N. Marion Road, Sioux Falls, SD
- 2230 S. Marion Road, Sioux Falls, SD
- 1501 W. 41st St., Sioux Falls, SD
- 108 Venture Place, Tea, SD
- Harrisburg Construction
