Business
Starbucks to close about 250 North America stores
The Hindu BusinessLine··8h ago
Starbucks plans to close around 250 locations in North America in the coming days, CNN reported. The company said those stores missed customer and employee goals or were not financially viable. The closures are about 1 percent of roughly 18,000 North American stores. Related charges are expected near $300 million, with about $200 million for leases and severance.
Prism
What It Means For You
- Customers may see closure signs from this weekend, and the Starbucks app will reflect the changes.
- A list of affected locations has not been released yet.
- Global openings this fiscal year are now expected near 440, down from 600 to 650.
What's Happening
- CEO Brian Niccol had announced a similar scale of closures a year ago in a $1 billion restructuring.
- COO Mike Grams told employees the company still sees long-term growth in North America.
- US same-store sales rose 7.9 percent in the most recent quarter.
What the turnaround has included
- Starbucks has been renovating cafes, improving service and simplifying its North America menu.
- The latest cuts continue a store-footprint reduction tied to that plan.
- The BusinessLine account is based on the CNN report and company statements.
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