Starbucks announced it will close 250 stores across North America, including 36 locations in Southern California, as part of a broader restructuring plan. The closures, representing about 1% of the company’s more than 18,000 North American stores, were confirmed in a Thursday memo from Chief Operating Officer Mike Grams.
The affected stores were selected based on their inability to consistently meet Starbucks’ financial performance expectations or deliver the customer experience the company aims to provide, according to Grams. The closures follow a review of operations that identified locations where long-term viability was uncertain.
Employee impact and support
Starbucks stated it would provide support to employees at the closing locations, including opportunities for transfers to other stores where possible. Employees unable to transfer would receive severance packages, though specific details were not disclosed. The company has already closed more than 600 stores in North America and Europe in recent months, alongside layoffs of hundreds of non-retail employees.
Sales performance amid closures
Despite the closures, Starbucks reported a 7.9% increase in global comparable-store sales for the fiscal third quarter, with North American sales up 8.1% compared to the prior year. The company’s turnaround plan, led by Chief Executive Brian Niccol since 2024, aims to enhance store experiences and address competitive pressures in the coffee market.
Locations affected in Southern California
While Starbucks did not publicly list the specific stores slated for closure, a fan-generated spreadsheet compiled by a user known online as Winter identified 36 Southern California locations based on app-reported closures. The Los Angeles Times confirmed all entries in the spreadsheet. Affected stores had signs posted in their windows notifying customers of the closures.
Employee reactions and concerns
Reports from employees and customers highlighted concerns over short notice periods for layoffs. Social media posts and Reddit threads described some workers receiving less than 48 hours’ notice before closures, despite company policies requiring two weeks’ notice for employee departures. Employees expressed worries about financial stability, particularly given the timing near rent due dates and upcoming holidays.
Company response and ongoing reviews
Starbucks did not respond to requests for comment on employee notice periods but reiterated its commitment to supporting affected workers through transfers or severance. The closures are part of a broader effort to streamline operations and improve profitability amid rising competition in the coffee industry.