Starbucks plans to close 250 North American stores later this week.
It is the second big round of store closures under Starbucks Chairman and CEO Brian Niccol, who joined the company in 2024. Last September, Starbucks closed 627 stores in North America and Europe and laid off 900 non-retail employees.
In a letter to employees, Starbucks Chief Operating Officer Mike Grams said the locations targeted either aren’t delivering acceptable financial results or can’t provide the kind of experience that Starbucks wants for customers and employees.
The company didn’t say Thursday which coffeehouses will close or how many are located in the U.S. It also didn’t say how many of the affected coffeehouses are unionized. More than 700 U.S.
Starbucks stores have voted to unionize since late 2021, but Starbucks doesn’t support the unionization effort and the union and the company have yet to reach a labor agreement.
Grams said Starbucks is continuing to retrofit its North American coffeehouses to make them cozier and more inviting. The company expects 1,500 stores will be retrofitted by Sept. 30, which is the end of Starbucks’ fiscal year.
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“This progress has given us a clearer view of the performance of every coffeehouse,” Grams said in his letter. “While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you.”
Grams said Starbucks is still committed to growing its store count in North America.
Starbucks said it will transfer employees to other stores if possible or provide severance support if it’s not able to place an employee in another location.
In May, Starbucks laid off an additional 300 corporate employees and closed some underused U.S. offices.
Global News sent a request to Starbucks asking how many stores would be closed in Canada and how many Canadian workers could be impacted. A spokesperson did not disclose exact numbers for Canada.
Starbucks shares fell 0.3 per cent Thursday morning as trading opened.
– with a file from Global News’ Ariel Rabinovitch
Feel for the employees but thbeverages are a rip off.
Unions are for idiots. They literally exist to protect idiots in keeping their jobs when they should have been fired on Day 1. They drive the costs of everything up, especially the puyblic unions. I’m so happy they’re about to turf all the idiots.
Who ever is complaining about unions has to be unskilled to the point of not being able to get into one… I took a 50% paycut when I left my union.. you people are slow…
Dunkin can open up and kick Horton’s a** 😅
Likely all the unionized stores, which is good. Their coffee is crapola anyway though.
I’ll just cross the street for a overpriced cup of Starbucks coffee. I need the exercise anyways.
The coffee there is horrible anyway. Burned beans
I don’t want to ‘experience’ a $3 cup of coffee
Good bye bye starfux
It is nice to go there and be served by white people as opposed to McDs or Timmies but they’re all liberals that fell face-first into a bait n tackle box. Idk what’s worse.
GREEDY F/ KS !!! BYE BYE
I’m Canadian and I hate hate Tim Hortons, gotta be Starbucks!
White trash inbreds can even run a cafe properly
Starbucks continuing to get destroyed by Tim Hortons in Canada. No surprise. Expect Tim Horton’s to just open up more stores with Starbucks leaving Canada.
The only good affordable, strong coffee. Independent shops have small cups, coffee taste like water, expensive
Oh dear…now I have less places to not buy their overpriced coffee. Whatever shall I do?
Tried their coffee ONCE !! That was the first and last time !!
I haven’t been able to do a sit up in years! Today I spent three hours getting ready to do nothing (as usual), and I still look like a bloated citrus fruit!!
Young Canadians understand when companies support genocide. They understood the assignment. That and the product is not worth the pricetag.
You’re right ben, now we have all the time to overthrow the government, never thought of that before. We are going to have parades everyday just to disrupt your day! Thank you for your support!
Overpriced mediocrity! Not a big loss!
Oh man, the very few liberals who were actually employed are now going to be out of a job.
We are going to have an entire political party of unemployed bums ready on any given workday to protest and disrupt our streets. So sad :(
Praying for my green hair nose ring lib sisterz! fight the power!
Les : This has nothing to do with the Federal or any provincial government. This is simply a corporation that didn’t treat it’s employees with decency and respect, hence many of the franchise (independently owned) stores became unionized. Even though each store is independently owned, the corporation still holds the big hammer to close it.
Never been to one.Don’t care
People don’t have the money anymore to pay for overpriced coffee and fancy drinks.
“Beautiful girls are waiting to meet you—come join the profile
Carney’s plan is coming together nicely. Alberta out!