Starbucks pulls the plug on Teavana — including 3 stores in NYC

Coffee giant to shutter 379 shops within a year

New York /
Jul.July 28, 2017 09:00 AM

Tea time’s over for Starbucks Coffee’s three Teavana stores in New York City.

The Seattle-based coffee giant announced it would shutter all of its 379 Teavana stores by the spring of 2018. In New York, that includes locations at 1291 Lexington Avenue on the Upper East Side, 2261 Broadway on the Upper West Side and 9015 Queens Boulevard in Elmhurst, Queens, the Commercial Observer reported.

The stores had been “strategically underperforming,” Starbucks’ president and CEO Kevin Johnson said during an earnings call Thursday.

Starbucks bought the tea company for $620 million in 2012, but despite “creative merchandising and new store designs, the underperformance was likely to continue,” the company said in a third-quarter earnings report. In January, Starbucks said it planned to convert its three New York City Teavana locations into Starbucks stores.

Earlier this month, Princi bakery, which is owned by Starbucks, signed an 18,000-square-foot lease at LIVWRK and FirstMarket Capital’s 160 Van Brunt Street in Red Hook.

Last year, Starbucks inked a deal for 20,000 square feet at 61 Ninth Avenue in the Meatpacking District. The outpost will house an upscale roastery, restaurant and café.

On Thursday, Starbucks said it shell out $1.3 billion to buy out its joint venture partners in its East China business. [CO] — E.B. Solomont


Related Articles

arrow_forward_ios
Council member Pierina Ana Sanchez and RSA’s Joseph Strasburg (Getty; Twitter)
Citing Bronx fire, Council pushes building violation crackdown
Citing Bronx fire, Council pushes building violation crackdown
SB Development’s Joseph Stern and Northwind’s Ran Eliasaf with rendering of Nova (LinkedIn, NOVA)
SB Development, Hazelton Capital score $62M loan for LIC condo tower
SB Development, Hazelton Capital score $62M loan for LIC condo tower
Illustration of Mayor Eric Adams (Getty; Illustration by Kevin Rebong for The Real Deal)
Oh, rats! Eric Adams contests summons for infestation
Oh, rats! Eric Adams contests summons for infestation
Brookfield's Bruce Flatt with 1100 Newark Turnpike (Loopnet, Brookfield)
Brookfield buys CSX industrial site in Northern New Jersey for $67M
Brookfield buys CSX industrial site in Northern New Jersey for $67M
198 Scholes Street, 65 Kent Avenue, 506 DeKalb Avenue and 11 Gunther Place (Illustration by the Real Deal with Getty, Google Maps)
Avi Philipson deal to acquire All Year portfolio is back on
Avi Philipson deal to acquire All Year portfolio is back on
From left: McSam Hotel Group's Sam Chang and SL Green's Marc Holliday with 711 Seventh Avenue  (Getty, Google Mpas, SL Green)
Times Square hotel developer sues neighbors over delayed demolition
Times Square hotel developer sues neighbors over delayed demolition
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...