Starbucks CEO Brian Niccol has announced the closure of hundreds of locations across North America as part of a strategic review of the company’s operations. The decision is aimed at improving profitability and enhancing the customer experience. Starbucks plans to close locations that do not meet financial performance standards or fail to provide the environment customers expect. This move will result in a slight reduction in the total number of company-operated stores, which will be around 18,300 by the end of fiscal year 2025.
• Approximately 900 non-retail partner roles will be eliminated.
• Starbucks will close locations identified as unprofitable.
• The company plans to revamp over 1,000 locations to improve design.
• Future growth is expected in fiscal year 2026 with more coffeehouses.
These changes are significant as they reflect Starbucks' commitment to long-term growth and profitability. By focusing on successful locations and enhancing customer experiences, Starbucks aims to strengthen its market position and ensure a sustainable future for its partners and communities.
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