#starbucks store closures

Starbucks Closing Dozens of Stores Nationwide in 2025: See the Full List of Locations and Why It’s Happening

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starbucks store closures
STARBUCKS BEGINS CLOSING 150-200 STORES: WHAT YOU NEED TO KNOW NOW America’s most ubiquitous coffeehouse is shrinking—at least temporarily. Starbucks confirmed it will shutter roughly 1 % of its 18,300 cafés in the United States and Canada before the company’s fiscal year ends next week, eliminating an estimated 150-200 locations and cutting 900 corporate jobs. WHY STARBUCKS IS TURNING OFF THE LIGHTS • Underperforming stores: CEO Brian Niccol said targeted cafés “don’t see a path to financial performance.” • Safety and upkeep: Some outlets report rising maintenance costs, crime or drug activity that undermine the “physical environment” Starbucks promises customers and employees. • Strategic reset: The closures free up capital for a $1 billion overhaul that includes remodeling more than 1,000 remaining stores with warmer décor, extra power outlets and expanded seating. WHAT HAPPENS TO BARISTAS & CORPORATE STAFF Affected baristas will be offered transfers to nearby units, while laid-off office workers will receive severance, extended benefits and remote work options during the transition. IMPACT ON YOUR DAILY COFFEE RUN • Urban hot spots in Seattle, Los Angeles, Portland, Philadelphia and Washington, D.C., are expected to see the highest concentration of exits, according to internal memos reviewed by local media. • Mobile-order-only “Pickup” sites are being trimmed the most, hinting at a pivot back toward full-service cafés that encourage longer visits. • Starbucks vows net growth will resume in 2026, so many neighborhoods may see upgraded replacements rather than permanent loss. UNION TENSIONS SIMMER Starbucks Workers United argues closures disproportionately hit recently unionized stores and labeled the decision “retaliatory.” Management denies the claim, but the National Labor Relations Board is already investigating similar moves made in 2022, adding legal heat to the brand’s turnaround story. INVESTOR ANGLE Shares of SBUX are down roughly 7 % year-to-date, underperforming broader restaurant indices. Analysts say the belt-tightening could bolster margins next year, but warn sustained traffic declines could offset savings if customers migrate to competitors like Dunkin’ or Dutch Bros. TIMELINE AT A GLANCE • Feb 2025: 1,000 HQ jobs cut. • Jun 2025: Remodeling initiative announced. • Sep 25 2025: 900 additional layoffs + store-closure list delivered to employees. • Oct 31 2025: Fiscal year ends with 18,300 North American stores, down from 18,734. BOTTOM LINE For coffee lovers, the shake-up may mean driving a few extra blocks—or discovering a refreshed, cozier Starbucks next year. For the company, trimming weaker branches is the opening shot in a high-stakes plan to restore sales momentum, calm labor unrest and reclaim its status as the world’s go-to third place.

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