2 Philly Starbucks Stores Close Permanently Amid Wave Of Closures

PHILADELPHIA — Two Starbucks locations in Philadelphia have permanently closed after the restaurant chain announced plans to shutter hundreds of coffeehouses last week.

Starbucks revealed plans Thursday to close about 250 locations across North America that week. Specific coffeehouses weren't revealed, but two Philadelphia locations have closed in recent days:

• 2201 South St., in Center City
• 1018 N 2nd St., in Northern Liberties

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Chief Operation Office Mike Grams said Starbucks closed locations "where we do not believe we can consistently deliver the experience we want for customers and partners or where we don't see a path to acceptable financial performance."

It impacted about 1 percent of the company's 18,000 North American shops. Starbucks also closed 627 stores in North America and Europe last September.

Starbucks also recently announced a "Back to Starbucks" business strategy to revitalize the traditional coffeehouse atmosphere associated with it in earlier years.

"As we shared on our most recent earnings calls, our North America business has returned to strong growth. Customers are receiving faster service, a more consistent experience, and warmer, more welcoming coffeehouses," Grams said in a statement.

Starbucks is trying to transfer impacted employees to other stores and will provide severance to workers who don't have a transfer opportunity available, a company spokesperson said.

But the changes come amid longterm tension between the corporation and Starbucks Workers United — the union representing employees at locations that have voted to unionize. Starbucks has not recognized the union, which has repeatedly accused the corporation of union busting.

Several Starbucks locations are unionized, including the South Street coffeehouse that recently closed.

In a statement, Starbucks Workers United said a small number of the shuttered stores are unionized.

"(Thursday's) announcement proves once again that 'Back to Starbucks' is nothing more than a betrayal of what workers and customers loved about the company," the union said. "As Starbucks continues to close stores, violate labor law, hike up our healthcare premiums, and betray its core value of belonging to appease right-wing politicians, the company is moving further away from everything it once was."

Dozens of Starbucks locations remain open across Philadelphia.