Starbucks to close 250 North American stores

Starbucks plans to close 250 stores in North America later this week. In a letter to employees on Sept. 24, COO Mike Grams stated that the targeted locations either fail to deliver acceptable financial results or cannot provide the experience the company expects for customers and workers.

The company did not disclose which specific locations will shut down, how many are in the U.S., or how many of the affected stores are unionized. More than 700 U.S. stores have voted to unionize since late 2021, and the union and the chain have yet to reach a labor agreement.

Starbucks continues to update its North American coffeehouses and expects to finish retrofitting 1,500 stores by Sept. 30, the close of its fiscal year. Grams noted that while the company remains committed to expanding its store network, underperforming locations were identified during this review process.

The chain announced that it will transfer affected staff to other locations where possible, offering severance packages to those who cannot be placed.