Starbucks CEO Brian Niccol has released a statement regarding the impending closure of hundreds of the coffeehouse brand’s locations across North America.
Niccol says after “carefully reviewing” the Starbucks’ portfolio, the business will close locations where it does not see a path to profitability.
The closures mean in fiscal year 2025, there will be an overall drop of approximately one per cent of the overall company-operated count. This will see Starbucks finish out the year with nearly 18,300 locations in the region.
“I shared earlier this year that we were carefully reviewing our North America coffeehouse portfolio through the additional lens of our Back to Starbucks plan,” the statement reads.
“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed.
“Each year, we open and close coffeehouses for a variety of reasons from financial performance to lease expirations. This is a more significant action we understand will impact partners and customers.”
The decision to close the stores comes amid Starbucks’ revamp of numerous locations around the region.
“In fiscal year 2026, we’ll grow the number of coffeehouses we operate as we continue to invest in our business. Over the next 12 months, we also plan to uplift more than 1000 locations to introduce greater texture, warmth, and layered design.”
In addition to the location closures, Niccol says about 900 current non-retail partner roles will be “eliminated”, and many open positions will be closed as Starbucks continues to reduce non-retail headcount and expenses.
“We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth,” Niccol’s statement reads.
“These are steps to reinforce what we see is working and prioritise our resources against them … I know these decisions impact our partners and their families, and we did not make them lightly.
“I believe these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers, and the communities we serve.”
Starbucks has confirmed its flagship roastery in Seattle will be one of the locations closed, according to Reuters.
