Starbucks Corp. disclosed that it will shutter approximately 250 coffee‑shop locations across the United States and Canada in the coming days. The closures represent roughly one percent of the chain’s North American footprint of about 18,000 stores.
Why the closures?
The company said the affected cafés “didn’t deliver the experience we want for customers and partners” and were not financially viable. The move is part of a broader $1 billion restructuring plan launched by CEO Brian Niccol, who announced a similar wave of store closures and corporate layoffs a year ago.
Financial impact
Starbucks expects to incur about $300 million in charges related to the closures, including $200 million for early lease terminations and employee severance. The charges were detailed in a regulatory filing on Thursday.
Growth outlook
Despite the closures, the company remains optimistic. COO Mike Grams wrote to employees that Starbucks is “excited about the significant long‑term growth opportunity ahead in North America” and is actively developing a pipeline of new coffeehouses. However, the firm now projects only about 440 new global openings this fiscal year, down from a prior target of 600‑650.
Recent performance
Starbucks’ same‑store sales in the United States rose 6% in the most recent quarter, a milestone Niccol highlighted as the point when the company’s momentum became “truly measurable.” The chain’s sales have been returning to growth for about a year.
Customers will see signage at the affected locations this weekend, and the closures will be reflected in the Starbucks mobile app.
Original reporting: El Paso News (HLL/CB) — read the source article.
