Starbucks is currently facing challenges in retaining its existing customers and attracting new ones, particularly in its home city of Seattle. The company attributes its declining sales and foot traffic to several factors: rising prices, increased competition from independent coffee shops, and a less satisfying customer experience.
Recent survey data from Nielsen reveals that Seattle has experienced the most significant drop in Starbucks patronage among the 50 largest U.S. metropolitan areas between 2018 and 2024. In 2018, approximately 1.06 million adults in the Seattle metro area, representing 35% of the adult population, reported visiting a Starbucks within the last 30 days. This placed Seattle alongside San Jose, California, as the top market for Starbucks.
However, by 2024, the number of adults visiting Starbucks in Seattle has decreased to around 840,000, or about 26% of the adult population, which is a notably steep decline. As a result, Seattle now ranks fifth among the largest U.S. metro areas regarding Starbucks patronage, while San Jose continues to lead with 33%.
This nine percentage-point drop for Seattle, from 35% to 26%, is the largest recorded decline for Starbucks among these metropolitan areas. Following Seattle, Las Vegas saw the second-largest drop, from approximately 26% to 19% of adults, while Baltimore fell from around 17% to 12%.
Among the 50 largest metros assessed, 28 experienced a decline in Starbucks popularity, while only 22 showed growth or remained the same. Notably, in areas where Starbucks gained traction, Austin, Texas saw the most significant increase, with patronage rising from about 19% to 24% of adults. Dallas and Grand Rapids, Michigan, also recorded substantial growth during this period.
The reasons behind Seattle’s steep decline in Starbucks popularity remain unclear. However, store closures in the area could certainly be a contributing factor. In 2022, Starbucks shut down five stores in Seattle, citing safety concerns related to crime which posed risks to both employees and customers. In the previous year, two stores in the downtown area were closed, including one near Pike Place Market and another at Fifth and Pike.
Starbucks has also been shutting down stores in various other locations, signaling broader issues for the chain. These closures have raised suspicions among some observers that the company may be illegally closing stores to undermine unionization efforts. Additionally, the chain’s anti-union stance has further contributed to perceptions of its declining popularity.
Compounding these challenges, Starbucks has faced backlash over several controversial decisions. In 2023, the removal of Pride decorations by some store managers resulted in employee outrage. Moreover, calls for boycotts have arisen from claims regarding Starbucks’ support for Israel amid its conflict with Hamas.
In conclusion, Starbucks is grappling with various factors influencing its customer base in Seattle, its chosen closures, and controversial positions taken by the company amid a rapidly changing coffee shop landscape.
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