Starbucks To Shut 250 North American Stores As Underperformance Triggers Major Network Review

Starbucks plans to close 250 of its North American coffee shops later this week due to poor performance and a desire to revamp its store network, according to a message shared with employees. Chief Operating Officer Mike Grams disclosed that the stores chosen for closure either failed to meet financial targets or couldn't provide the desired customer and employee experience.

The company has not specified which locations will be affected, nor the exact number of closures in the United States. Starbucks has seen more than 700 stores in the US vote to unionize since late 2021, an effort Starbucks has opposed, with no collective bargaining agreement yet reached between the company and the union.

Despite the closures, Starbucks remains committed to expanding its presence in North America. The company aims to finish renovations at about 1,500 locations by September 30, marking the end of its fiscal year. Grams explained that these renovations are helping Starbucks gain a better understanding of the performance of every coffeehouse. While most stores are benefiting from this overall improvement, some continue to underperform despite the dedication of the staff.

For employees impacted by the store closures, Starbucks is working to transfer them to other nearby locations with available positions. If relocation is not possible, affected employees will receive severance assistance.