Starbucks is set to implement significant changes to its operations across North America, as announced by chairman and CEO Brian Niccol. In a recent public letter to employees, Niccol detailed the company’s plans to close several store locations and initiate layoffs as part of a broader strategy aimed at revitalizing the brand and improving customer experience.
While specific numbers for the closures were not disclosed, Niccol indicated that Starbucks would conclude the current fiscal year with approximately 18,300 locations in the U.S. and Canada, combining both company-operated and licensed stores. He stated, “Our overall company-operated count in North America will decline by about one percent in fiscal year 2025 after accounting for both openings and closures,” noting that the company has opened numerous new coffeehouses over the past year.
The decision to close stores affects partners working at these locations, who will be notified in the coming week. Additionally, around 900 non-retail positions will also be eliminated. These actions are part of the company’s ongoing “Back to Starbucks” restructuring campaign, which aims to recalibrate the brand’s focus and improve overall performance.
Alongside the closures and layoffs, Niccol emphasized plans for renovating existing stores to enhance customer experiences. Over the next year, Starbucks intends to uplift more than 1,000 locations, introducing designs that embody greater warmth and texture. He suggested that stores remaining open might see an increase in staff during peak holiday periods to address customer wait times more effectively.
The CEO underscored the importance of investing in workforce hours to improve service. “Where we’ve invested in more green apron partner hours, we saw improvements in transactions, sales, and service times, alongside happier, more engaged partners,” he noted. This reflects a broader effort to elevate customer service and operational efficiency amidst a year of notable changes, including fluctuating menu offerings and adjustments to the rewards program.
As the coffee chain embraces these transformations, it also aims to maintain a diverse selection of products. Customers impacted by store closures might find solace in homemade recipes, like pumpkin cold foam, and the recent launch of a range of fall products available in grocery stores nationwide, showcasing Starbucks’ commitment to reaching its audience outside traditional locations.
