Starbucks inks lease as independent coffee shops struggle to survive
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New York / Staff
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(Credit: Getty Images)
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]