Starbucks will shutter 250 North American stores this week, including nine in Florida, due to financial woes, media reports say.
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.
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 Associated Press reported.
Per WXIA-TV in Atlanta, Starbucks has tapped these nine Florida locations for closure:
Starbucks Workers United, which represents workers at the 700 company-owned U.S. Starbucks stores that have voted to unionize, said 20 unionized stores are among the 250 that are closing, or 8% of the total. Starbucks stores have been voting to unionize since late 2021, but the union and the company have yet to reach a labor agreement.
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. Starbucks Workers United said Thursday it's sending a formal request for information to Starbucks about the planned closures and will engage in bargaining at every unionized store.
The company will face an estimated $300 million in charges relating to the closures, including $200 million stemming from early lease terminations and severance benefits, CNN reported.
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.
"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. At the end of June, the company had 18,371 stores in the region.
The Associated Press contributed reporting and writing.
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