Starbucks will close all Teavana locations, including 3 in Pittsburgh area

Ann Santiago
July 29, 2017

No word on whether or not Teavana's online platform will continue to function after the physical store closures, but Starbucks does plan to continue serving the tea products in its own coffee shops.

"The company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue", Starbucks said in a press release.

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"We have big plans for tea in Starbucks retail and C.P.G. globally, but as we shared with you on our last call, many of our Teavana mall-based stores have been persistently underperforming", Kevin R. Johnson, president and chief executive officer, said during a July 27 conference call with analysts.

So, maybe it's not that we're not so into tea, it's just that we don't need a special spot for it?

"This year foot traffic is down 30-40 percent (at malls) from last year", Martino said in an interview with the Herald-Tribune last week.

Competition has intensified in the USA restaurant industry, making it challenging for chains to get customers to visit their stores more often. McDonald's, meanwhile, has been promoting $1 sodas and $2 McCafe smoothies, frappes and shakes, a strategy the burger chain says helped bring in customers during the second quarter. The company made its first foray into China 18 years ago, and has since established locations in more than 130 communities, opening roughly 500 new stores every year. It cut its profit forecast for the year for the second time. Earlier on Thursday, the company also announced that it would be spending $1.3 billion to purchase the remaining 50% of its joint venture business in China, according to a Chicago Tribune report. Excluding one-time items, it earned 55 cents per share, in line with Wall Street expectations. Total revenue was $5.66 billion, less than the $5.76 billion expected.

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