News Summary
Starbucks is planning to shut down several stores in California as part of a $1 billion restructuring effort aimed at enhancing financial performance. CEO Brian Niccol stated that the company will close underperforming locations, with up to 188 stores in the U.S. included on an unofficial list. This move, effective soon, will also involve laying off around 900 non-retail employees. The closures may significantly impact local communities that depend on these coffee shops for employment and services.
Los Angeles, California – Starbucks is set to close dozens of locations across California as part of a broader restructuring effort aimed at improving the company’s financial performance. The Seattle-based coffee chain has announced mass closures in the U.S., Canada, and Europe as a component of a $1 billion transformation strategy that seeks to realign its operations with profitability goals during a challenging market.
CEO Brian Niccol outlined that Starbucks will close stores in locations where the company is unable to create the expected physical environment or meet financial performance standards. The decision follows a review that revealed many locations were underperforming in terms of financial metrics or customer experience.
A public Google sheet has emerged, listing over 200 potential store closures, while discussions within a Reddit thread have garnered over 230 comments from users speculating on the likelihood of these closures. According to the unofficial list on the Google sheet, 188 U.S. locations are marked for closure, with a significant concentration in Los Angeles, California.
Starbucks anticipates operating approximately 18,300 coffee shops by the close of its fiscal year, indicating a reduction of 124 locations from the previous year. The company is also laying off about 900 non-retail employees as part of this restructuring process. These affected employees will receive notifications and be offered severance and support packages.
Specific closures in Southern California include stores located in cities such as Brea, Fullerton, Huntington Beach, Pasadena, and West Hollywood, among others. According to retail data analytics firm ScrapeHero, Starbucks currently operates 3,190 locations in California.
Notably, Starbucks has previously shuttered several locations in San Francisco due to decreased foot traffic during the pandemic. The closures announced this time may impact not only employees but also local communities that rely on these coffee shops for both services and employment. Starbucks has acknowledged the difficulty of these decisions, emphasizing that closing any store can significantly affect the community.
Some stores are set to close as early as Sunday, Sept. 28, with notices already posted at various café locations across affected areas. The adjustment in Starbuck’s operational strategy is intended to position the company better in light of ongoing economic challenges and shifting consumer behaviors.
As Starbucks moves forward with its transformation strategy, it reflects a growing trend among retailers to evaluate their presence in various markets actively. The coffee chain aims to streamline operations while focusing on enhancing customer experience and overall store performance.
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- ABC10
- Wikipedia: Starbucks
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- Google Search: Starbucks closures California
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- Orange County Register
- Encyclopedia Britannica: Starbucks
- FOX40
- Google News: Starbucks California closures
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