This decision follows months of negotiations with the neighboring businesses and the city.

With over 290 locations across seven different states, Dutch Bros has gained a number of loyal customers who are willing to wait in a long drive-thru line for their morning cup of joe.

As a result, the location on 4 West Camelback Road has outgrown its space.

On an average day, a Phoenix police officer can be found directing the kiosk's traffic in order to avoid blocking the city's bus stop.

This has led to concerns regarding traffic, parking and accessibility for neighbors and other local businesses.

The company decided the best option is to open the stand at a new location.

"Because Dutch Bros strives to be a good neighbor and enrich the community it serves, it has continued to work with the City of Phoenix, as well as neighbors, to explore solutions and reach an agreement on the future of the location," Rilynn Davis, Dutch Bros Phoenix's public relations specialist, said.

According to Tim Gallen at the Arizona Business Journal, adjacent businesses including Stinkweeds, Frances Vintage Boutique, Arizona Hi-Fi and Halo Precision Piercing were among those who complained to the city and asked for a revocation of Dutch Bros.' permits back in March 2019.

As a result, Dutch Bros. Phoenix representatives entered an agreement with the businesses, allowing this location to remain open until March 2020, if an alternate site was identified and under construction by Dec. 28.

Davis said it was the company's hope to remain open in order to provide continuity to its hard-working employees and to the community.

However, the potential site will not be ready to break ground by Dec. 28 because of permitting and zoning requirements.

As a result, the W Camelback Dutch Bros location must close on that day to support the needs of local businesses.

One of the primary struggles with the location is the traffic can often block customers from getting into the businesses' parking lot.

Olivia Munson, a frequent shopper at Frances, shared an instance where the police officer directing traffic mistook Munson and her friends as Dutch Bros customers. This led them to have to wait 20 minutes in the Dutch Bros drive-thru when they had no intention of getting coffee.

"I love Dutch Bros as much as the next Arizonan, but sometimes it's (the traffic) too much to handle so I don't come to Frances as much anymore," Munson said.

Though the shop closing will help the neighboring businesses, several loyal Dutch Bros customers are saddened with the announcement.

"We'll miss our customers when we close the W Camelback location, but being a good neighbor is our priority right now," said Josh Hayes, general manager of Dutch Bros Phoenix.

"It was very close to my high school, Xavier College Preparatory, and my friends and I would go pretty often," Mary Lou Long, a central Phoenix resident, said.

Now, as a Downtown Arizona State University student, Long said she visits the stand on her way to work because it is still the closest Dutch Bros location. She was sad when she heard the announcement because she loved being able to grab a coffee or tea whenever she wanted.

"I'll probably just get AJ's teas instead," Long said. AJ's Fine Foods is a gourmet market located right across the street from the Camelback Dutch Bros.

Company representatives urge customers to visit other locations until the new Central Phoenix one opens.

"We look forward to sharing details on that soon, and reconnecting with our customers," Hayes said.