Starbucks has announced plans to close several locations in Maryland as part of a broader strategy to revamp the brand and enhance its financial performance. The decision was made public by CEO Brian Niccol, who emphasized that the closures are necessary due to certain cafes failing to meet the physical expectations of customers and partners, as well as not demonstrating a viable path to profitability.
In a statement, Niccol explained, “Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations. This is a more significant action that we understand will impact partners and customers.” Alongside the store closures, the company will also eliminate around 900 non-retail partner roles, alongside the closure of many open positions. Those affected by the layoffs will receive generous severance packages and extended benefits.
Although Starbucks did not provide a comprehensive list of the locations closing, six cafes in Baltimore have been identified to cease operations after Saturday. The affected locations include:
– Belvedere – 1209 N. Charles Street
– Canton – 2500 Boston Street
– Inner Harbor – 100 E. Pratt Street
– Federal Hill – 1100 S Charles Street
– Fells Point – 631 S Broadway Street
– Washington Hill – 250 West Pratt Street
In a broader context, Starbucks may shut nearly 500 locations across North America in the current quarter, according to a report from TD Cowen analyst Andrew Charles.
Brian Niccol took the reins as CEO in September 2024 with a goal to revitalize Starbucks. Prior to this role, he served as the CEO of Chipotle, where he successfully doubled the company’s profits and stock prices over nearly six years. Earlier in February, Starbucks announced 1,100 corporate layoffs aimed at streamlining operations and enhancing decision-making processes.
