Key facts
- Starbucks will close approximately 250 underperforming coffeehouses in North America.
- The closures represent about 1% of Starbucks' more than 18,000 North American locations.
- The company cited a review identifying locations with inconsistent customer/employee experience or weak financial performance.
- Affected employees will be offered transfers where possible, with severance for those who cannot be placed.
- The move supports Starbucks' "Back to Starbucks" turnaround strategy, which includes 1,500 store upgrades.
- Starbucks stated its North American business has returned to strong growth and it remains committed to opening new stores.
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.