Starbucks to shutter 250 stores this week in new wave of closings (last year closed 627)

MSN LA Times ^ | 9 24 | Story by Dee-Ann Durbin

[dennisw]

Starbucks plans to close 250 North American stores later this week.

It is the second big round of store closures under Starbucks Chairman and CEO Brian Niccol, who joined the company in 2024.

Last September, Starbucks closed 627 stores in North America and Europe and laid off 900 non-retail employees.

In a letter to employees, Starbucks Chief Operating Officer Mike Grams said the locations targeted either aren’t delivering acceptable financial results or can’t provide the kind of experience that Starbucks wants for customers and employees.

The company didn’t say Thursday which coffeehouses will close or how many are located in the U.S. It also didn’t say how many of the affected coffeehouses are unionized.

More than 700 U.S. Starbucks stores have voted to unionize since late 2021, but Starbucks doesn’t support the unionization effort and the union and the company have yet to reach a labor agreement.

Grams said Starbucks is continuing to retrofit its North American coffeehouses to make them cozier and more inviting. The company expects 1,500 stores will be retrofitted by Sept. 30, which is the end of Starbucks’ fiscal year.

“This progress has given us a clearer view of the performance of every coffeehouse,” Grams said in his letter. “While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you.”

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TOPICS: Business/Economy; Chit/Chat; Computers/Internet
KEYWORDS: starbucks

[poconopundit]

No big deal -- about 1% of stores closing.  That's simply a big business tweaking its operations.

Here in Japan, Starbucks is super popular and rents a prime location at the central rail terminal which effectively operates as a shopping mall.

But 2 miles east of the terminal is where I live, and there's a neighborhood Starbucks.  It features free parking, free WiFi, and fabulous beverages, but the location is a bit crowded.  Maybe the young urbanites appreciate working in a crowd, but not this Septuagenarian.

For my taste there a Beatles-themed Penny Lane Bakery and cafe only a 5-minute walk away. There, I can usually find a table in a corner where I run your laptop and listen to my Japanese language audios.  No free WiFi unfortunately, but the Cafe au Lait Espressos are great.

[cableguymn]

That is what is putting the hurt on starbucks..

their coffee ain’t that great.

[BFW]

Good to hear!!!!

I hope they close all of them.

[oldtech]

I know a lot of folks like Starbucks, but their closing apparently means a lot of folks also don’t need their high-priced stuff. If (and I don’t KNOW this as fact) their prices have gone up like some have, I can easily understand their business dropping off.

[oldtech]

I know a lot of folks like Starbucks, but their closing apparently means a lot of folks also don’t need their high-priced stuff. If (and I don’t KNOW this as fact) their prices have gone up like some have, I can easily understand their business dropping off.