Starbucks closes 400 stores this weekend - 4 things we know so far
The first syndicated Starbucks store in Seattle is one of those who close.
Even Latte season with pumpkin spices I couldn't withdraw Starbucks from his crisis. The International Coffee Channel announced Thursday that it would close the “sub-performant” stores across North America this weekend, as well as the dismissal 900 company employees, according to The New York Times .
CEO of Starbucks Brian Niccol wrote in a letter to the staff that blocking cafes are those who were "unable to create the physical environment that our customers and partners expect, nor where we do not see a way to financial performance". Here is everything we know so far on Starbucks' plans.
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1. Starbucks' finances have been suffering for a year.
In July, the pedestrian traffic of Starbucks was down for six consecutive quarters. In addition to the increase in labor and inflation costs, this has considerably affected the operating margins of the company and sales in stores. And, like the Times Signal, "the actions of the company have dropped by around 12% in the past year."
These financial misfortunes started before Nichols went from chipotle to Starbucks in September 2024, and he has been trying to correct the courses since.
"While we make good progress, there is much more to do to build a better, more resilient and more resilient Starbucks," he wrote in a public letter Released yesterday. "While we are approaching from the start of our new exercise, I share two decisions that we have supported our back plan in Starbucks. The two are anchored to put our closest resources to the customer so that we can create excellent coffees, offer global class customer service and develop the company."
2. Starbucks returns to a “coffee” model.
The restructuring plan of $ 1 billion in Nichols includes the objective of attracting more people in Starbucks, focused on the return to the classic “Coffeehouse” model.
During July winning call , Nichols has announced that the company "Sunset our concept of mobile order and collection" to "improve and transform the foundations of our North American company so that we restore this moment of connection between a barista and their client".
In other words, Starbucks closes all the pitches 80 to 90 picks up only by the end of 2026. Many of them are located in large cities.
“We found that this format was too transactional and lacking in heat and human connection that defines our brand. We have a strong digital offer and think that we can offer the same level of convenience thanks to our community cafes with a mobile order and a higher payroll experience, "he shared.
With regard to the existing locations of Starbucks, nearly 1,000 will be renovated to include comfortable seats, comfortable lighting, community sockets, local illustrations and locally inspired design elements.
In relation: Customers slam the changes in Starbucks store: "Just fast food, zero culture".
3. Now, Starbucks closes 400 underperforming locations this weekend.
In his open letter, Nichols noted that Starbucks would end his exercise this weekend with 18,300 stores in the United States and Canada. “In June, the company said that it had 18,734 stores, which suggests that around 400 stores would close. The company refused to confirm a figure "," The New York Times Reports. This is a reduction to one percent of the Starbucks imprint.
"The partners of the cafes who should close will be informed this week. We are working hard to offer transfers to nearby places as much as possible," he continued. "For those we cannot immediately place, we focus on partners' care, including complete starting packages. We also hope to welcome many of these partners in Starbucks in the future as new cafes opened and the number of partners in each place is developing."
Although the company has not yet published the assigned locations, a spokesman said USA today that the Starbucks application would reflect the closures on Sunday.
However, as USA today reports: "An audience Google leaf At more than 200 entries that marked probable closures at the end of September 25 and A Reddit wire of probable closures has more than 230 comments. »»
According to these unofficial lists, 67 locations will only close in California. Employees of Six stores in the Tucson region confirmed that they closed, just like the employees to Six twin cities stores And 15 Oregon stores .
The Workers United Union, which represents more than 12,000 baristas, confirmed Reuters The flagship closure of Starbucks in Seattle closed, as well as another unionized store on Ridge Avenue in Chicago.
It is not yet clear if the locations of approximately 90 picks up only are included in this count.
4. In addition, 900 company employees are licensed.
Nichols also confirmed in his letter that 900 corporate employees would lose their jobs, in addition to the 1,100 employees who were dismissed earlier this year.
"The non-detailed partners whose roles are eliminated will be informed tomorrow morning (Friday)," he wrote yesterday. "We will offer generous starting and support packages, including service extensions."
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