The Investor
25 Sep 2025, 17:21
Starbucks CEO Brian Niccol announced two major steps under the company’s “Back to Starbucks” plan: closing select North American coffeehouses that lack financial viability or suitable customer environments, and eliminating about 900 non-retail roles while closing many open positions.
Despite closures, Starbucks expects its total store count in the U.S. and Canada to decline only about 1% in fiscal 2025, ending the year with nearly 18,300 locations, and plans to resume growth in fiscal 2026. Over 1,000 stores will be redesigned with warmer, layered concepts. Impacted retail partners will be offered transfers where possible, with severance provided otherwise, while laid-off non-retail partners will receive severance and benefit extensions.
Niccol emphasized that these moves aim to redirect resources toward store-level investment, more partner hours, improved customer service, and refreshed designs—steps he said are already driving higher visits, sales, and customer satisfaction in early trials.
Despite closures, Starbucks expects its total store count in the U.S. and Canada to decline only about 1% in fiscal 2025, ending the year with nearly 18,300 locations, and plans to resume growth in fiscal 2026. Over 1,000 stores will be redesigned with warmer, layered concepts. Impacted retail partners will be offered transfers where possible, with severance provided otherwise, while laid-off non-retail partners will receive severance and benefit extensions.
Niccol emphasized that these moves aim to redirect resources toward store-level investment, more partner hours, improved customer service, and refreshed designs—steps he said are already driving higher visits, sales, and customer satisfaction in early trials.