Starbucks to close 250 stores in North America this week
Starbucks announced plans to close 250 stores across North America later this week. The decision stems from the company's assessment that certain locations are not meeting financial expectations or failing to provide an ideal customer and employee experience. Starbucks Chief Operating Officer Mike Grams revealed the decision in a message to employees.
The company did not disclose the specific locations slated for closure or the distribution of closures between the U.S. and Canada. Additionally, the status of unionization efforts in these stores remains uncertain, as it is unclear how many affected stores are unionized. Starbucks has faced over 700 union votes at U.S. locations since late 2021, but the company does not support these efforts.
A resolution between the union and Starbucks is yet to be reached. Despite the closures, Starbucks remains committed to expanding its North American store count. The company aims to retrofit 1,500 stores by the end of September, marking the conclusion of its fiscal year. Grams highlighted that while most stores are benefiting from this renovation, some continue to underperform.
In such cases, affected employees will either be transferred to other Starbucks locations or receive severance support if relocation is not feasible.
Written by urgent.news from Winnipeg Free Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
