Starbucks plans to close approximately 250 underperforming coffeehouses across North America, representing about 1% of its total locations in the region. The decision comes as part of the company's "Back to Starbucks" turnaround strategy, aiming to improve customer and employee experience and financial performance.
The store closures signal Starbucks' strategic focus on optimizing its physical footprint to improve profitability and customer experience, potentially impacting employment and local communities where the affected stores are located.
Starbucks announced on Thursday that it will close approximately 250 underperforming coffeehouses across North America. The decision, which represents about 1% of the company's more than 18,000 locations in the region, is part of its "Back to Starbucks" turnaround strategy.
In a memo to staff, Chief Operating Officer Mike Grams explained that a review of the company's store portfolio identified locations where Starbucks cannot consistently deliver its desired customer and employee experience or achieve strong financial performance. The company stated that it will offer affected employees transfer opportunities where possible and provide severance packages for those who cannot be placed in other roles.
Grams indicated that the company's North American business has seen a return to strong growth, with customers experiencing faster service and a more welcoming environment. Starbucks is accelerating its plans to complete 1,500 store upgrades and remains committed to opening new coffeehouses in the region in the coming years.
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