Business & Real Estate

Why Starbucks is going away from its tea business to focus on coffee sales

Matcha tea is prepared at a Teavana store in Beverly Hills. Starbucks, which owns the mall-based tea stores, will shutter all 379 Teavana stores, including three in the Sacramento area.
Matcha tea is prepared at a Teavana store in Beverly Hills. Starbucks, which owns the mall-based tea stores, will shutter all 379 Teavana stores, including three in the Sacramento area. The Associated Press

Starbucks is ending its venture into stores specializing in tea.

Disappointing sales have prompted the Seattle-based coffee giant to close all 379 of its Teavana stores, The Associated Press reported Thursday. The businesses are based in malls.

There are three stores in the Sacramento area: Arden Fair, Westfield Galleria in Roseville and Solano Town Center in Fairfield. The locations will be shuttered over the next year.

Starbucks CEO Kevin Johnson says a drop in mall visitors played a factor in the decision.

“We felt it was an appropriate time to take the decision and begin shutting down those stores,” Johnson told AP.

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