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

Starbucks announced plans to close an additional 250 North American stores this week, marking its second significant wave of store closures under the leadership of CEO Brian Niccol. The recent round of closures follows a massive round of store closures in September 2023, where the company shut down 627 locations across North America and Europe.

In a letter to employees, Starbucks COO Mike Grams revealed that the locations identified for closure either failed to meet the financial targets Starbucks set or weren't capable of delivering the exceptional customer and employee experience the company aspires to provide. Starbucks hasn't disclosed the specific stores that will close or the exact number of stores in the U.S. among the 250 that will be shutting down.

Starbucks Workers United, representing workers at the 700 company-owned U.S. Starbucks stores that have voted to unionize, confirmed that 20 unionized stores among the 250 slated for closures, accounting for approximately 8% of the total. Unionization efforts at Starbucks have been gaining momentum since late 2021, but the union and the company are yet to reach a labor agreement.

Grams also mentioned that Starbucks is actively working on retrofitting its North American coffeehouses to create a more welcoming and comfortable ambiance for customers. The company anticipates that 1,500 stores will be undergoing retrofits as part of this initiative.