Starbucks said Thursday it will close 250 locations, about 1% of its more than 18,000 North American stores, with 36 of those closures falling in Southern California. The Seattle coffee giant is targeting underperforming coffee houses where it does not see a path to delivering the customer experience or long-term financial performance it expects, Chief Operating Officer Mike Grams said in a letter posted on the company's website. The company has already closed more than 600 stores in North America and Europe and laid off hundreds of non-retail employees as it battles increased competition and slowing sales under Chief Executive Brian Niccol, who took over in 2024 and enacted a turnaround plan. In July, Starbucks reported global comparable-store sales up 7.9% for the fiscal third quarter versus last year, with North American store sales up 8.1%. Starbucks did not list the locations set to close, but a spreadsheet compiled by a Starbucks fan known online as Winter, based on locations listed as closed for the coming week in the company's app, includes 36 Southern California sites; The Times confirmed all are no longer listed in the app and are either marked permanently closed on Google or did not respond to phone calls. The company said it will support affected employees with potential transfers, and those unable to transfer will receive severance support.
Starbucks CorporationStarbucks is closing 250 underperforming North American stores, including 36 in Southern California, as part of its turnaround amid slowing sales and increased competition.
