Starbucks is set to close 250 of its stores across North America by the week’s end. This decision has left staff uncertain about their employment status and has given many short notice.
Expressing their concern, a Starbucks customer posted on Reddit, featuring a photo of a notice from their local coffeehouse informing customers of the upcoming closure.
The customer highlighted their conversation with a barista who received less than 48 hours’ notice and was unclear about their job security. Others have shared similar experiences on Reddit, with many worried about severance pay and financial obligations, especially with rent and holidays approaching.
Starbucks employees have reported receiving as little as one day’s notice, while others had three days, which contrasts with the company’s usual requirement of a two-week notice for resignations.
A former manager commented on the ambiguous feelings of closing their store, hoping for a transfer but expressing resignation in the process.
Newsweek has reached out to Starbucks, quoted Reddit users, and Starbucks Workers United for comments.
Behind the Closures
In a memo to employees, Starbucks’ COO Mike Grams stated that a review identified stores unable to achieve consistent financial performance or customer satisfaction, leading to the decision to close these coffeehouses.
The closures represent about 1% of Starbucks’ more than 18,000 stores in North America. Grams acknowledges the closures’ impacts on partners, customers, and communities but ensures affected staff will have support, including potential transfers and severance options.
The closures, part of an ongoing $1 billion restructuring plan previously announced by CEO Brian Niccol, reflects regular portfolio adjustments in Starbucks’ North American operations.
While Starbucks will open 440 new locations worldwide this fiscal year—a decrease from the 600 to 650 initially planned—the company remains committed to growth in the region.
Starbucks estimates $300 million in operational closure costs, including $200 million for lease terminations and employee severance expenses.
Which Stores Will Close?
Starbucks has not publicly detailed the specific locations closing across North America; however, signage at closing coffeehouses will direct customers to visit Starbucks.com or the Starbucks app for updated information.
The San Francisco Chronicle reports closures in several Bay Area locations, such as Lafayette, Walnut Creek, South San Francisco, Santa Rosa, and others.
Further postings on SFGate suggest additional locations, such as in Burbank, Calabasas, Century City, and locations across southern California, show impending closures due to appearing ‘closed’ temporarily.
An accessible list compiled by affected employees lists more locations throughout the U.S., including stores in Alabama, Arizona, and elsewhere, though Newsweek has not verified these closures.
Newsweek editors Ben Kelly and Cristina Diciu have been managing enquiries related to this breaking news story.