Starbucks to shutter 250 stores in North America this week in 2nd wave of closings

Starbucks announced plans to close 250 North American stores later this week, marking the second major wave of store closures under CEO Brian Niccol's leadership. The closures come after Starbucks shuttered 627 locations in North America and Europe in September, laying off 900 non-retail staff. In a letter to employees, Starbucks COO Mike Grams revealed that the targeted stores either failed to meet financial expectations or couldn't deliver the desired customer experience.

Starbucks hasn't disclosed which stores will close or the number of closures in the U.S., nor has it specified how many affected locations are unionized. Despite over 700 U.S. Starbucks stores voting to unionize since late 2021, the company opposes the union efforts and has yet to reach a labor agreement. Starbucks is also retrofitting its North American stores to make them more inviting, with the goal of completing 1,500 retrofits by September 30, the end of the fiscal year.

Grams emphasized that while most stores are performing well, some continue to underperform despite employees' best efforts. The company remains committed to expanding its North American store count, offering transfer opportunities or severance support for employees who can't be placed elsewhere. Starbucks shares increased by less than 1% in premarket trading following the announcement.