PENNSYLVANIA —Starbucks is closing 250 coffeehouses across North America this week, a move likely to impact Pennsylvania customers as the coffee giant continues a restructuring strategy known as "Back To Starbucks."
It's second significant round of closures in the past year. Last September, Starbucks closed 627 stores in North America and Europe.
Starbucks has not identified the stores that are shuttering. But in a Securities and Exchange Commission filing this week, the company stated that they are "North America coffeehouses that do not deliver the coffeehouse experience and financial performance expected of the brand."
This round of closures represent about 1 percent of Starbucks' more than 18,000 North American coffeehouses. According to Starbucks Locations IQ, there are about 440 Starbucks locations in Pennsylvania - the 11th highest number of stores among all states.
In a letter to employees this week, Starbucks Chief Operating Officer Mike Grams noted that the company continues to retrofit its North American coffeehouses to make them more inviting. The company expects 1,500 stores will be retrofitted
"This progress has given us a clearer view of the performance of every coffeehouse," Grams stated in the letter. "While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you."
Starbucks said that employees at closing locations will be transferred to other stores when possible. Workers who cannot be placed elsewhere will receive severance support.
According to the SEC filing, the company expects to incur about $300 million in restructuring charges, including costs associated with ending leases and employee separation benefits.
The Associated Press contributed to this story.
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