Sept. 24 (UPI) — Starbucks announced it will close about 250 underperforming stores in North America, about 1% of its 18,000 locations.
The announcement, revealed in a letter to employees from chief operating officer Mike Grams, heralds the second major wave of Starbucks closures since Brian Niccol became CEO two years ago.
The closures are part of Niccol’s “Back to Starbucks” improvement initiative.
“We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” Grams wrote in the letter.
The locations to be closed have not yet been specified by the company, but a regulatory filing from the company indicates most of the stores will be shuttered before the end of fiscal 2026.
Gram wrote that affected employees will be offered transfers where possible, and others will be given severance support.
The restructuring is expected to cost about $300 million, including $200 million for breaking leases and paying severance benefits to employees. The remaining $100 million will come from the disposal of restaurant assets owned by the company.
Source: U.S. News
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