Starbucks Makes ‘Difficult Decision’ to Close Hundreds of Locations

Famed coffee shop brand Starbucks has made the “difficult decision” to close approximately 250 stores.

In a letter to employees, Starbucks Chief Operating Officer Mike Gram revealed the unfortunate news.

We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” he explained. “As a result, we will close approximately 250 coffeehouses later this week. This represents approximately 1% of our more than 18,000 North America coffeehouses.  

Despite the decision, Gram stated that the company’s North America business has reutnred to “strong growth.”

“Customers are receiving faster service, a more consistent experience, and warmer, more welcoming coffeehouses,” he assured. “We’re accelerating our pace toward completing 1,500 coffeehouse uplifts, and Green Apron Service has become our defining standard. Our Back to Starbucks strategy is working.”

Gram noted the progress has given the company a “clearer view” of the performance of every coffeehouse. He also said the closures are not new to the company.

“Every year we close some coffeehouses and open others as part of managing our portfolio,” he pointed out. “And as we shared previously, we remain excited about the significant long-term growth opportunity ahead in North America. We are actively developing a strong pipeline of new coffeehouses and remain committed to growth in North America.   

Gram also stated the closure of any coffeehouse is a difficult decison, and acknowledged the news would be hard for the partners, customers, and communities impacted.

“We’re making this decision for a simple reason: we want every Starbucks coffeehouse to be a place customers love and partners are proud to work,” he added. “Thank you for everything you’re doing to help us get Back to Starbucks.”