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Starbucks inks lease as independent coffee shops struggle to survive

Starbucks has inked a 10-year deal to renew its 1,192-square-foot lease at the Durst Organization’s One Bryant Park, CO first reported. The coffee giant first took the ground floor space in 2011.

  • Local coffee shops are struggling: The U.S. will have 25,307 outlets specializing in coffee or tea by the end of 2020, down 7.3% from a year earlier in the first decline since 2011. That’s helping coffee-serving national chains such as Starbucks, Dunkin’, and even McDonald’s gain ground at the expense of independent outlets fighting to keep their doors open, Bloomberg noted.
  • Be Smart: Starbucks previously announced that it would close up to 400 locations in the next 12 to 18 months, and put more emphasis on cafes built for mobile pick-up, drive-thru orders, and curbside pick-up. In that same window, the company expects to open more than 50 “Starbucks Pickup” stores in urban trade areas. Some New York City outposts are reportedly on the chopping block. 
  • Worth Noting: Starbucks signed a 23,000-square-foot lease at the Empire State Building in April. The space could potentially be a high-concept store similar to the Starbucks Reserve Roastery and Tasting Room in Seattle. [CO+CNBC+Bloomberg]

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