{"id":1215,"date":"2025-10-07T15:30:15","date_gmt":"2025-10-07T15:30:15","guid":{"rendered":"http:\/\/www.agencywebdesigners.com\/?p=1215"},"modified":"2025-10-09T14:23:02","modified_gmt":"2025-10-09T14:23:02","slug":"starbucks-sweeping-store-closures-arent-a-surprise-heres-why","status":"publish","type":"post","link":"http:\/\/www.agencywebdesigners.com\/index.php\/2025\/10\/07\/starbucks-sweeping-store-closures-arent-a-surprise-heres-why\/","title":{"rendered":"Starbucks\u2019 sweeping store closures aren\u2019t a surprise. Here\u2019s why"},"content":{"rendered":"

By Megan Ulu-Lani Boyanton, The Seattle Times<\/strong><\/p>\n

Deanna Meyerhoff, 55, moved to Seattle in 1993. Back then, the expansion of Starbucks was just so tremendous,\u201d she said.<\/p>\n

Until recently, Meyerhoff would treat her daughter to pink drinks and stop for iced black tea lemonades while on walks with the family dog, she recalls. But those are memories now.<\/p>\n

Her favorite Starbucks stores in her neighborhood, Haller Lake, recently shuttered as part of a slew of closures announced by the company last week. Living in the coffee giant\u2019s hometown, \u201cit definitely hits differently when it\u2019s a local company,\u201d Meyerhoff said.<\/p>\n

\u201cIt\u2019s a shareholder thing: You grow or you die. And they grew \u2014 and, now, they have to shrink back to actually make money.\u201d<\/p>\n

Meyerhoff isn\u2019t an industry analyst, but her assessment is shared by some who see last week\u2019s $1 billion Starbucks restructuring plan, including layoffs and store closures, as a move to please investors.<\/p>\n

Like other large coffee chains, Starbucks is trying to stand out among the competition and welcome more customers through its doors all while fighting global and local headwinds \u2014 from production costs to President Donald Trump\u2019s tariffs.<\/p>\n

It has not been easy. In July, Starbucks reported mixed quarterly results, including increased revenue and decreased profit. At $558 million, the company\u2019s profit was almost half of what it reported for the same quarter a year earlier, and earnings per share were 49 cents \u2014 a drop from 93 cents for the same period in 2024.<\/p>\n

At the time, CEO Brian Niccol, less than a year on the job, talked about his experience with turnarounds, adding, \u201cWe\u2019re building back a better Starbucks experience and a better business.\u201d<\/p>\n

The recent changes could be a step toward buoying the business.<\/p>\n

\u201cWe remain committed to returning cash to our shareholders while balancing our investments in our long-term growth strategy,\u201d said Chief Financial Officer Cathy Smith in a statement this week.<\/p>\n

Closed for business<\/h4>\n

While Seattle\u2019s coffee lovers might not have paid much attention to industry struggles, Starbucks store closures beginning late last week jolted their attention.<\/p>\n

Laurie Fryett said she will miss her Mill Creek Town Center location, which shuttered as part of the cull.<\/p>\n

\u201cI\u2019m disappointed that Starbucks is closing neighborhood locations, especially because, over the years, I\u2019ve found that it\u2019s a great place just to go, relax, connect with friends,\u201d she said. \u201cI know there\u2019s a lot (of Starbucks stores), and it\u2019s probably a hard decision to have to close, but it\u2019s going to affect so many people.\u201d<\/p>\n

Starbucks declined to share the number of stores slated for closure but confirmed its app is up to date. According to the app, dozens of Seattle-area locations have been impacted, even though some of them appeared to loyal customers to be well-loved.<\/p>\n

Performance was not the only consideration in the decision-making process.<\/p>\n

In his announcement of the closures, Niccol said coffeehouses are opened and shuttered for a number of reasons, including financial performance and lease expirations.<\/p>\n

Fryett, 72, just wants a nearby Starbucks coffee shop with a patio where she can sit and sip hot chocolate with whipped cream in the sunshine.<\/p>\n

While customers like her hunt for new spots, hundreds of workers will be hunting for gigs.<\/p>\n

Part of the restructuring plan involved another round of corporate layoffs \u2014 900 last week, on top of 1,100 earlier this year \u2014 and the store closures will likely entail more job losses on the retail end.<\/p>\n

Starbucks told The Seattle Times on Tuesday that it was notifying affected retail workers, and they will either be transferred or extended a severance package.<\/p>\n

\u201cWe\u2019re working hard to offer transfers to nearby locations where possible and will move quickly to help partners understand what opportunities might be available to them,\u201d Niccol said. \u201cFor those we can\u2019t immediately place, we\u2019re focused on partner care including comprehensive severance packages.\u201d Starbucks refers to workers as partners.<\/p>\n

There\u2019s potential for future job opportunities, he added. \u201cWe also hope to welcome many of these partners back to Starbucks in the future as new coffeehouses open and the number of partners in each location grows.\u201d<\/p>\n

Turnaround or just new paint?<\/h4>\n

Niccol joined Starbucks at a shaky time for the company.<\/p>\n

In 2024, under then-CEO Laxman Narasimhan, Starbucks\u2019 profits and revenue had plummeted, which led to \u201cthe biggest fall in the stock since the start of the pandemic,\u201d according to Bloomberg.<\/p>\n

Niccol had handled fast food companies in crisis before. A former leader at both Taco Bell and Pizza Hut, he was brought into the fold at Chipotle in 2018 after the chain\u2019s customers fell ill from food-related illnesses. After almost seven years with the company, Niccol was credited with doubling its revenue \u2014 a veritable success story.<\/p>\n

At Starbucks, the hope was Niccol could appease the company\u2019s shareholders.<\/p>\n

\u201cHis retail excellence and track record in delivering extraordinary shareholder value recognizes the critical human element it takes to lead a culture and values driven enterprise,\u201d longtime former Starbucks CEO Howard Schultz said in a statement announcing Niccol\u2019s transition.<\/p>\n