ET 21:55

Starbucks Shutters 250 North American Stores, Including 36 in Southern California

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Starbucks is closing 250 North American locations, about 1% of its more than 18,000 stores in the region, with 36 Southern California sites among those identified as likely shuttered. The Seattle-based chain confirmed the cuts in a Thursday letter from Chief Operating Officer Mike Grams, citing locations lacking a path to expected customer experience or long-term financial performance. The closures follow more than 600 store shutdowns across North America and Europe and hundreds of non-retail layoffs. CEO Brian Niccol, who took over in 2024, has pursued a turnaround plan to make stores more inviting amid intensifying coffee-market competition and slowing sales. For the fiscal third quarter reported in July, Starbucks said global comparable-store sales rose 7.9% year over year, with North America up 8.1%. The company said affected employees will receive transfer opportunities or severance. Starbucks did not publish a closure list; the Southern California locations, concentrated in Los Angeles and San Diego, were compiled from store-app data and confirmed by The Times.

ByTicklex Editorial