Starbucks has announced plans to trim its store network, this time in\nNorth America. The US-based coffee giant will close around 250 outlets\ndeemed to be underperforming as part of an effort to overhaul its\nbusiness.<\/p>\n
This figure represents approximately 1% of Starbucks\u2019 total stores in\nNorth America. The company currently operates more than 18,000 stores in\nthe region.<\/p>\n
This closure marks the second round of reductions since Brian Niccol\ntook over as Starbucks CEO approximately two years ago. Under his\nleadership, the company is seeking to revitalise its US business by\nimproving the customer experience, including direct interactions within\nthe stores.<\/p>\n
Starbucks Chief Operating Officer Mike Grams stated that the company\nhas conducted a review of its store portfolio in North America.<\/p>\n
\u201cWe have carefully reviewed our coffee shop portfolio in North\nAmerica and identified locations where we feel we cannot consistently\nprovide the experience we want for our customers and partners, or do not\nsee a path to acceptable financial performance,\u201d Grams said in a letter\nto employees, as reported by CNBC International on Friday\n(25\/09\/2026).<\/p>\n
Specific details regarding which locations will be affected by the\nclosures have not yet been disclosed. However, most of these stores are\nexpected to cease operations before the end of Starbucks\u2019 2026 fiscal\nyear in late September.<\/p>\n
Alongside these closures, Starbucks is also reducing its net new\nstore growth projections for the 2026 fiscal year. The company now\nexpects to add only 440 net new stores.<\/p>\n
This figure is lower than the previous projection of 600 to 650\nstores. These new outlets will be sourced from international\nmarkets.<\/p>\n
Despite the closures in North America, Starbucks maintains that it\nstill sees significant long-term growth opportunities in the region. The\ncompany is also preparing a number of new stores for its next expansion\nphase.<\/p>\n
\u201cThe company continues to see significant long-term growth\nopportunities in North America and is actively developing a strong new\ncoffee shop network,\u201d Starbucks wrote in a regulatory filing.<\/p>\n
The closure of hundreds of stores will not come without a cost.\nStarbucks estimates it will incur restructuring costs of approximately\nUS$300 million (around Rp5 trillion) related to these measures.<\/p>\n
Approximately US$200 million of the total cost relates to early lease\nterminations and severance payments to affected employees. Meanwhile,\nthe remaining US$100 million consists of non-cash costs arising from the\ndisposal and impairment of company-owned store assets.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/starbucks-to-close-250-outlets-what-is-the-issue-1790337193", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }