Starbucks to Close 250 North American Stores This Week
The coffee giant is shutting down locations that are not meeting financial expectations as part of its second wave of closures.
Starbucks plans to close 250 North American stores later this week, marking the second significant round of closures under CEO Brian Niccol, who joined the company in 2024. The company previously closed 627 stores across North America and Europe and laid off 900 non-retail employees in September.
According to Starbucks Chief Operating Officer Mike Grams, the targeted locations are either underperforming financially or failing to provide the desired customer and employee experience. The company has not yet specified which coffeehouses will be affected or how many are unionized. More than 700 U.S. Starbucks locations have voted to unionize since late 2021, and the company and union have not yet reached a labor agreement.
Grams stated in a letter to employees that Starbucks is continuing to retrofit its North American stores to enhance their atmosphere, with a goal of retrofitting 1,500 stores by the end of Starbucks' fiscal year on September 30. He noted that while most stores are benefiting from ongoing momentum, some continue to underperform despite staff efforts.
Starbucks reiterated its commitment to expanding its store count in North America. The company will offer to transfer employees to other locations where possible or provide severance support for those who cannot be placed. In May, Starbucks also laid off an additional 300 corporate employees and closed some underused U.S. offices.