Overview
- Closures are concentrated in major metros, including 42 in New York City, more than 20 in Los Angeles, 15 in Chicago, seven in San Francisco, six in Minneapolis and five in Baltimore, with the plan running through 2026.
- Starbucks reviewed more than 18,000 U.S. and Canadian stores and said it is exiting locations that are underperforming or no longer meet brand standards.
- Roughly 1,000 company-owned stores will be remodeled with seating and power outlets to encourage lingering as CEO Brian Niccol revives the brand’s “third place” concept.
- The restructuring includes about 900 corporate job cuts, with efforts to reassign employees and severance available for those who cannot transition.
- Executives and analysts cite remote work, rising operating costs and intensified competition for the slowdown in urban sales, with reports noting six consecutive quarters of U.S. same-store declines.