New York Post·2025-12-30 18:31Core Insights - Starbucks is planning to close five more stores in New York City, continuing a trend that began in the fall, with rival Luckin Coffee eyeing these locations for potential expansion [1][5][6] - The closures are attributed to leases not being renewed, following a significant reduction of 34 stores in September due to six consecutive quarters of declining sales [2][5][15] - Luckin Coffee has opened nine stores in NYC within seven months and is actively negotiating for more locations, potentially quadrupling its presence in the city [5][6][13] Company Actions - Starbucks has closed a total of 42 stores in New York City over the year, marking the highest number of closures among chain retailers in the US [12][15] - The company is undergoing a $1 billion restructuring plan, which includes closing 400 stores nationwide and laying off 900 corporate staff [15] - Starbucks is focusing on reopening select locations, such as a shop at 1585 Broadway, but no new openings are planned beyond this [9] Market Dynamics - The abrupt closures of Starbucks stores have significantly impacted the real estate market, as the chain was previously considered a desirable tenant [11][12] - The closures reflect a broader trend where Starbucks has reduced its NYC store count by about 20% since 2019, from 351 to 286 stores [15] - The shift in consumer behavior post-COVID, with fewer customers visiting stores regularly, has contributed to the decline in profitability for many locations [16]