Additional Coverage:
- Starbucks is closing 250 stores. Read the memo it sent to staff. (businessinsider.com)
Starbucks announced plans to close approximately 250 underperforming coffeehouses across North America as part of an ongoing effort to enhance its store portfolio and customer experience. The closures account for just over 1% of the company’s more than 18,000 locations in the region.
In a memo to staff, Chief Operating Officer Mike Grams explained that a recent review revealed certain stores were unable to consistently meet financial targets or deliver the quality experience Starbucks aims for. The company intends to support affected employees by offering transfers to other locations when possible, along with severance packages where no alternative positions are available.
This move aligns with Starbucks’ “Back to Starbucks” turnaround strategy, which focuses on reinvigorating the brand by improving the in-store atmosphere, speeding up service, and emphasizing the core coffee experience. As part of this initiative, Starbucks is also completing upgrades at 1,500 stores to create warmer, more welcoming environments. The strategy includes restoring customer favorites such as ceramic mugs, handwritten cup messages, and free refills, while simplifying the menu to reduce wait times and improve consistency.
Grams highlighted that despite these closures, Starbucks’ North American business is experiencing strong growth, and the company remains committed to expanding its presence with new store openings in the years ahead. Since CEO Brian Niccol took the helm in 2024, the company has concentrated on returning to its roots as a neighborhood coffeehouse, prioritizing quality and customer connection.
In his memo, Grams acknowledged the difficulty of closing stores but emphasized the importance of ensuring every Starbucks location is a place customers love and partners are proud to work. He expressed gratitude to the impacted employees for their dedication and assured them of the company’s support throughout the transition.
This strategic realignment aims to position Starbucks for sustained success by focusing resources on stores that best serve customers and communities while continuing to drive growth across North America.
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- Starbucks is closing 250 stores. Read the memo it sent to staff. (businessinsider.com)