Starbucks shuttering ‘tea bar’ format

Starbucks Corp. is still hot for tea, but it’s not feeling too warm and cozy about its Teavana "tea bar" format, which debuted in New York City about two years ago. The concept sought to elevate the tea-drinking experience, much the way Starbucks did for coffee, and featured an array of tea-related beverages and food items in a comfortable environment that encouraged people to linger.



The coffee giant plans to convert three of the five existing Teavana tea bar locations into Starbucks stores, and shutter the location in Beverly Hills. It will keep the fifth location, in Seattle, open as a space where it can test new ideas related to tea. The retailer also will keep open Teavana’s 350 shops, which primarily sell packaged teas and related appliances.



Starbucks acquired Teavana in 2012. In a statement, the company said: “Teavana continues to be a strategic priority for Starbucks, recognizing the significant opportunity that tea presents as a $125 billion global category.”