Starbucks is set to close 250 stores in North America later this week, marking the second major round of shutdowns under Chairman and CEO Brian Niccol, who took the helm in 2024. The company has not identified which specific coffeehouses will be closed, nor how many of the affected sites are in the United States.
Local impact on Texarkana
Employees at the three Texarkana stores—located at 2507 Richmond Ranch, 3912 N. State Line Ave., and 5211 W. Park Blvd.—said they do not believe their locations are on the chopping block. Starbucks said signage will be posted at any coffeehouse slated for closure to inform customers.
Reason for closures
Chief Operating Officer Mike Grams explained in a letter to staff that the targeted stores are either failing to deliver acceptable financial results or cannot provide the experience Starbucks aims for its customers and employees. The company is also continuing a retrofit program to make its North American coffeehouses more inviting, with a goal of updating 1,500 stores by Sept. 30, the end of its fiscal year.
Union considerations and employee support
Starbucks did not disclose how many of the closing locations are unionized. More than 700 U.S. stores have voted to unionize since late 2021, but a labor agreement has yet to be reached. Grams said the company will transfer employees to other stores when possible or provide severance benefits if relocation is not feasible.
Financial impact
The restructuring is expected to cost Starbucks about $300 million, including $200 million in cash charges for lease exits and employee separation benefits, and $100 million in non‑cash charges for asset disposals and impairments. Shares fell less than 1% in morning trading following the announcement.
Recent history
Last September, Starbucks closed 627 stores across North America and Europe and laid off 900 non‑retail employees. In May, the company cut an additional 300 corporate jobs and closed several underused U.S. offices.
Despite the closures, Starbucks remains committed to growing its store count in North America, which stood at 18,371 locations at the end of June.
Original reporting: Texarkana Gazette — read the source article.
