Starbucks says it will close 250 North American stores later this week, targeting locations that are not meeting financial or customer-experience expectations.
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Starbucks says it will close about 250 stores across North America later this week, affecting individual coffeehouses that the company says are not delivering acceptable financial results or the customer and employee experience Starbucks is aiming for.
In a letter to employees, Chief Operating Officer Mike Grams said the targeted locations either are underperforming financially or cannot provide the kind of environment Starbucks wants, according to the company’s internal communication.
Starbucks did not specify which stores will be closed or provide a breakdown of closures in the United States. It also did not indicate how many of the affected locations are unionized.
Grams’ letter comes as unionization continues to expand within the company: more than 700 U.S. Starbucks stores have voted to unionize since late 2021, although Starbucks has said it does not support the effort and the company and unions have not reached a labour agreement.
While closing stores, Starbucks says it is continuing to renovate and retrofit its coffeehouses in North America to make them more “cozy” and inviting. The company expects 1,500 stores to be retrofitted by Sept. 30, the end of its fiscal year.
Grams said Starbucks has gained a clearer view of how each coffeehouse is performing, noting that most stores are benefiting from broader momentum while some continue to underperform despite employee efforts.
The company said it will attempt to transfer employees to other stores where possible, and that it will provide severance support if it cannot place workers at another location.
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