Starbucks announced a major restructuring effort that includes the closure of hundreds of stores across the United States and Canada. This move is part of a broader corporate plan aimed at streamlining the operations, improving customer experience and responding to a shift in consumer behaviors.
The company revealed in late September that it would be closing around 1% of its stores by the end of 2025. With 17,000 open stores in the U.S. and Canada, this leaves several hundred stores being forced to close their doors. Starbucks CEO Brian Niccol described the plan as a “necessary reset” that will allow for better alignment with current markets and customer expectations by changing the environments and improving operational costs.
Stores that failed to meet benchmarks of financial performance were prioritized for closure. Additionally, stores that did not meet the evolving expectations for the overall atmosphere, store layout and capacity limits set by the Starbucks corporation were prioritized for closure.
Another reason for the closures is to start realigning with the views of customers. There have been multiple nationwide boycotts because of the allegations that Starbucks supports U.S. military involvement in the Israel-Gaza war. Because of this, Starbucks locations have seen the effects of lost business and revenue.
The closure of Starbucks locations results in the elimination of jobs for store employees, including baristas, shift supervisors and managers. Starbucks has said that about 900 non-store held positions will be gone as part of the restructuring plan, in addition to 1,100 corporate positions. This does not include the thousands who have already lost their job due to their store location being closed.
Not only does this affect employees, but it also affects the customers. Regular patrons who relied on the Starbucks for convenience, daily routine and a workspace will have to adapt to other locations or a new coffee shop. For some, particularly smaller towns, the closures mean losing a gathering place, and they may not have any replacement.
In Oklahoma, there are already eight locations that have been shut down. One of those impacted is on the college campus of the University of Oklahoma, where students have been affected by this closure. For some of the students at the University of Oklahoma, that Starbucks location was more than a coffee shop: it was a place to study and meet with friends.
Despite the negative impact, Starbucks’ business owners insist this move is a step toward a long-term strategy. They will direct their plan to upgrading current stores’ resources, making more drive-thru and pickup shops, along with having more focus on sustainability and efficiency to fit consumers’ wants.
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