It may be a little harder to find a nearby Starbucks in the coming weeks as the seemingly ubiquitous coffee chain is set to close hundreds of stores across the U.S., including an undisclosed\u00a0 number in the Chicago area.<\/p>\n
Notice of the store closings, casualties of the company\u2019s Back to Starbucks restructuring plan, began appearing this week, with signs posted in the windows of the shuttering locations.<\/p>\n
\u201cWe\u2019ve made the incredibly difficult decision to close this Starbucks location,\u201d the sign on the Glencoe store has read since Thursday morning. \u201cWe know this may be hard to hear \u2013 because this isn\u2019t just any store. It\u2019s your coffeehouse.\u201d<\/p>\n
Similar epitaphs are popping up at locations across the city and suburbs. Starbucks did not respond to a request for a list of specific store closings.<\/p>\n
The Back to Starbucks plan, which was announced by CEO Brian Niccol soon after he took the helm of the coffee giant in September 2024, was a mission to improve performance, quality and speed of food and drink delivery, while \u201celevating the in-store experience\u201d to recapture the mojo of the 54-year-old chain.<\/p>\n
Seattle-based Starbucks had 17,230 U.S. stores and more than 41,000 worldwide at the end of June, according to the company\u2019s fiscal third quarter financial report.<\/p>\n
The retail downsizing will likely reduce that total by hundreds, with the company estimating it will incur $1 billion in restructuring costs related to the store closings, most of which will be completed by the end of September.<\/p>\n
The company is eliminating 900 corporate positions, while an undisclosed number of retail employees will be notified this week that their stores, and their jobs there, will be ending.<\/p>\n
\u201cWe\u2019re working hard to offer transfers to nearby locations where possible and will move quickly to help partners understand what opportunities might be available to them,\u201d Niccol said in a letter to employees posted on the company\u2019s website Thursday. \u201cFor those we can\u2019t immediately place, we\u2019re focused on partner care including comprehensive severance packages.\u201d<\/p>\n
North American same-store sales were down 2% in the third quarter, following a downward trend that saw a similar 2% decline in fiscal year 2024, according to financial filings.<\/p>\n
From the outset of his Back to Starbucks plan, Niccol pointed a finger at underperforming stores in the U.S. that failed to deliver on the coffeehouse experience. In his letter Friday, he explained the decision to close an undisclosed number of locations.<\/p>\n
\u201cDuring the review, we identified coffeehouses where we\u2019re unable to create the physical environment our customers and partners expect, or where we don\u2019t see a path to financial performance, and these locations will be closed,\u201d Niccol said.<\/p>\n
While Starbucks has yet to disclose the total number of closings or the specific locations, Niccol said in his open letter the company would end the fiscal year with nearly 18,300 stores in North America, which is down from 18,734 at the end of the third quarter, according to financial filings.<\/p>\n
The company plans to renovate more than 1,000 of its stores in the coming fiscal year, Niccol said.<\/p>\n
The decision to close stores has not landed well with Starbucks Workers United, which represents more than 12,000 baristas at 650 stores nationwide, including more than 30 in the Chicago area.<\/p>\n