News Summary
Starbucks has announced plans to close more than 100 coffeehouse locations in North America, with 36 in California. This decision is part of a restructuring effort aimed at enhancing operational efficiency. Employees at the closing locations may transfer to other stores, but approximately 900 non-retail staff will face layoffs. Key locations impacted include several in Los Angeles and San Francisco. Starbucks aims to solidify its presence in profitable areas, highlighting the emotional impact of the closures on communities.
Seattle – Starbucks has announced the closure of more than 100 coffeehouse locations across North America, with approximately 36 of those in California, including 20 in the greater Los Angeles area. This decision comes as part of a broader restructuring effort aimed at enhancing operational efficiency. The company revealed the closures on a Thursday but has not disclosed the specific locations affected. Business Insider is currently compiling a list of closing stores based on employee reports and store locator verification.
Major states impacted by the closures include California, the District of Columbia, Maryland, Massachusetts, Montana, New Jersey, New Mexico, New York, Oregon, Texas, Virginia, Washington, and Wisconsin. Key locations slated for closure include at least seven stores along Wilshire Boulevard in Los Angeles and notable locations such as the Starbucks situated at 4094 18th St. in San Francisco’s Castro District, among several others in the Bay Area.
Employees at the stores set to close are being offered the opportunity to transfer to other locations within the company; however, approximately 900 non-retail employees will face layoffs as a result of this restructuring initiative. CEO Brian Niccol stated that store reviews indicated some locations failed to create the desired environment for customers and partners or did not meet financial viability standards.
The closure operations are set to begin immediately, with some stores likely shutting down as early as Saturday following the announcement. As of June 29, Starbucks operated 18,734 locations across North America but anticipates having around 18,300 locations by the end of the fiscal year. While a complete list of closures has not yet been released, an update to the Starbucks app regarding operating hours and closures is expected by Sunday. An unofficial public list is circulating, detailing over 200 potential store closures, with 188 identified in the U.S., many concentrated in California.
In light of these changes, Starbucks Workers United has indicated they plan to formally request information regarding the closures to clarify the situation for employees and customers. Starbucks has pointed out that closures occur annually for a variety of reasons, with financial performance and lease expirations among the factors considered in the decision-making process. Notably, the company had also previously announced plans to close 80 to 90 of its dedicated “Pick Up” locations.
This wave of closures highlights a significant shift for the coffeehouse giant as it navigates challenges in the retail environment, aiming to solidify its presence in locations that can successfully contribute to its business objectives. The emotional impact of the closures is acknowledged, as many customers have formed connections with their local Starbucks stores over the years.
As Starbucks implements these changes, community members are left to grapple with the loss of familiar gathering places, while the company pivots towards locations that can sustain operational success. The upcoming weeks will be crucial for both the affected employees and the communities who frequent these outlets, as Starbucks continues to adjust its strategy in a competitive market.
Deeper Dive: News & Info About This Topic
HERE Resources
Starbucks to Close Over 100 Locations Across North America
Starbucks Announces Major Store Closures Across Regions
Additional Resources
- ABC7 News
- USA Today
- Press Democrat
- Encyclopedia Britannica: Starbucks
- Google News: Starbucks closures
Author: STAFF HERE WASHINGTON DC
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