patrick.net

Starbucks announces plans to cut another 900 jobs and close more stores as its turnaround struggles continue

Starbucks (SBUX) announced plans to close unprofitable locations and cut corporate jobs as CEO Brian Niccol focuses on the company's turnaround plan.

In a letter posted to its blog and sent to employees on Thursday, Niccol shared that the company plans to eliminate 900 non-retail roles and close open positions. The memo said employees will be notified on Friday, Sept. 26, and will offer "severance and support packages including benefits extensions.”

"We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth," Niccol wrote.

This comes after the company laid off 1,100 employees earlier this year. Niccol said the company plans to use the savings to invest in its stores by adding more customer service employees. Other investments include new coffeehouse designs and innovations.

Corporate employees, including support partners and people managers, are now required to come to the office four days a week starting Sept. 30, Niccol said in July.

Sept. 9 marked one year for Niccol at the helm of the company, which continues to face turbulent times.

In its latest quarterly results, Starbucks posted its sixth straight quarterly drop in US same-store sales. US same-store sales fell 2%, in line with the prior quarter's drop but less than the 2.5% drop that had been forecast. That was driven lower by a 4% decline in comparable transactions. Wall Street expected a sharper 4.5% decline.

Niccol also pointed to plans to reassess the store portfolio in the earnings call.

Now, the company plans to reduce its store count by roughly 1% in Canada and the US, reflecting both closures and openings, this fiscal year. By year-end, the total company-operated and licensed stores across the US and Canada will be nearly 18,300. As of Q3, there were 18,842 locations in North America.

"We identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed," Niccol wrote.

Starbucks plans to invest in 1,000 locations over the next 12 months to double down on the cozy coffeehouse atmosphere as it moves away from pick-up-focused customer experiences.

During a call with investors in July, Niccol said Starbucks plans to execute small, targeted renovations of its stores, spending approximately $150,000 per location, to bring back the thousands of chairs for patrons it took away.

For new locations, Niccol said it was able to cut the build cost by roughly 30% and will introduce a new stand-alone prototype in fiscal 2026 that will have 32 seats and a drive-through.

https://finance.yahoo.com/news/starbucks-announces-plans-to-cut-another-900-jobs-and-close-more-stores-as-its-turnaround-struggles-continue-120332919.html

Starbucks Closed Over 450 Stores This Week—Is Your Favorite Location on the List?

Key Takeaways

Over 450 Starbucks (SBUX) locations in the U.S. closed this week, about 1% of its total locations in North America.

The "grab and go" revolution might be overtaking Starbucks' traditional coffee shop model.

From renovated stores with actual seating to baristas writing on cups again, Starbucks is betting on becoming your "third place" even as customers increasingly just want their coffee fast.

Starbucks is closing about 1% of its company-operated North America stores as part of CEO Brian Niccol's dramatic $1 billion restructuring plan, Niccol announced last week. The cutback, he wrote, is "necessary to build a better, stronger and more resilient Starbucks." The company did not specify the number of closures, but some industry watchers say the "about 1%" translates into approximately 430 to 520 stores.

While the company wouldn't provide us with an official list of its closures, Investopedia scoured local newspapers and network affiliates, employee lists circulating on social media, and cross-referenced locations with the Starbucks location app and phone calls to compile a list of 467 locations that have shut their doors permanently this week.

…….

https://finance.yahoo.com/news/starbucks-closed-over-450-stores-191920228.html

Al_Sharpton_for_President says

Starbucks Closed Over 450 Stores This Week—Is Your Favorite Location on the List?

How many did they open though? They just opened one in a town near me. There's one in the grocery store in the same complex. I was never heavy into commercial real estate, but this seems completely retarded. I literally could hit my driver and the ball hit the front of the grocery store.

I think coffee is a dying model anyway. There are so many other drinks out there. I can roll up to a gas station and be in and out in 2 minutes instead of a 10-15 minute line for a cup of coffee with stupid names for sizes for average coffee. I'm a water and beer guy. Technically I drink shitty light beer that is basically water anyway. My pee is like a Montana stream, clear as can be.

WookieMan says

I could make my own coffee for 0.10¢ a cup

Costs me about 25 cents (includes water, Stevia, half and half creamer, electricity and cost for Moka pot) to make 3 cups of Bustello expresso , same would cost at least $5.50 at Starbucks (with $1 tip)

Yeah, I love me Pilon, Bustello, etc.

Coffee is outrageous now. Dunkies wants over $3 for a medium coffee (at least they put in the cream and sugar, unlike Lazybucks).

AD says

WookieMan says
I could make my own coffee for 0.10¢ a cup

Costs me about 25 cents (includes water, Stevia, half and half creamer, electricity and cost for Moka pot) to make 3 cups of Bustello expresso , same would cost at least $5.50 at Starbucks (with $1 tip)

I was straight black coffee. That's where my number comes from. I only drank it for the caffeine. I drink shitty beer, so black coffee is a breeze. Though I no longer drink coffee unless out with buddies and go to breakfast the next morning. Usually that's vacation though. I get too jittery with coffee, but it does wake me up.

I just don't understand the coffee game. Definitely cannot justify $3-6+ dollars for a cup. I'd rather get a 6 pack of tall boys and get an evening buzz before bed. Beer is cheap in IL surprisingly.

STARBUCKS' 2025 HOLIDAY MERCH HAS A BEAR CUP WITH TRAVIS KELCE VIBES

https://www.elitedaily.com/lifestyle/starbucks-2025-holiday-merch-collection

https://www.coffeeandcovid.com/p/just-ribbing-wednesday-january-28

This might understate things, but Starbucks didn’t handle the pandemic well. It deleted its condiment bars, allegedly for safety, forcing us to ask busy baristas for cream. After the George Floyd catastrophe, Starbucks invited its workers to have “thoughtful conversations about race” with customers. It didn’t go well. Now, unsurprisingly, many workers just seem sullen and mad all the time. Then, as if all that weren’t bad enough, Starbucks invited stinky homeless people to camp in their stores, where, for some reason, they spend most of their time hogging the restrooms.

The Childers family —heavy coffee consumers— swore off Starbucks after all the pandemic changes. We now prefer local coffeeshops.

Starbucks needs to issue a LOUD and PUBLIC apology for its race-baiting, or it's no go for me, ever.