Starbucks to close 430 stores in $1 billion shakeup
Starbucks is closing about 400 stores and letting go of 900 employees by the end of fiscal 2025, as part of a $1 billion overhaul.
After reviewing more than 18,000 locations in the US and Canada, the company found some shops just aren't pulling their weight.
The closures will trim Starbucks's footprint by about 1%.
Big changes for city coffee runs
Major cities are feeling this most—New York City alone will lose 42 stores (that's 12% gone), while LA, Chicago, San Francisco, and Minneapolis are also seeing notable cuts.
CEO Brian Niccol is closing underperforming urban stores and repositioning Starbucks in response to remote work trends and rising competition.
What's next for Starbucks?
Even with these closures, Starbucks's revenue grew 5% last quarter to $9.6 billion, with global sales ticking up for the first time in nearly two years.
Still, profits took a hit—GAAP EPS dropped by 85%.
Looking ahead, they're planning new store openings and fresh makeovers for over a thousand existing shops by 2026—think more seats and faster service to keep your coffee run smooth.