Starbucks Announces Store Closures in the UK: What It Means for the Future

In a significant move as part of its ongoing strategy, Starbucks has announced plans to close several stores across the UK while also implementing job cuts in North America. This decision comes amid a broader restructuring effort aimed at revamping the brand’s operations and enhancing profitability.

Background of the Restructuring Plan

Starbucks’ global restructuring is primarily driven by a thorough review of its coffeehouse portfolio under CEO Brian Niccol, who has been with the company since September 2024. The “Back to Starbucks” initiative focuses on improving customer experience, enhancing store formats, and ensuring financial viability. Niccol stated in a letter to employees that some locations will be shuttered as they do not meet performance expectations or customer needs.

Impact on Employment and Operations

As part of the restructuring, Starbucks plans to lay off around 900 non-retail staff members in North America, while also closing about 100 stores. Despite the closures, the company remains committed to growth, with plans to open 80 new locations in the UK this year alone.

Starbucks acknowledges the impact of these decisions on employees and communities. The company has initiated consultations to support affected staff, offering relocation options and additional compensation where necessary.

Reactions from Employees and Unions

The announcement has sparked responses from Starbucks Workers United, a union representing many of its employees. Critics of the closure plan express concerns about staffing shortages and the decision-making process lacking input from frontline employees. The union plans to formally engage with the company regarding these impacts, emphasizing the need for worker representation.

Looking Forward

Starbucks aims to streamline its operations to create a more resilient business model. The goal is to restore its reputation as a welcoming space while addressing declining sales figures over recent quarters. Niccol’s leadership is focused on transforming Starbucks into a customer-centric business that supports both employees and the communities it serves.

What a Starbucks looks like today

I pass a drive thru Starbucks every day on my walk to the gym.  Today I popped in for a nosey and a £3.75 coffee, and besides being near the entrance to BAE Warton at 08:30am – the branch was empty.  I asked the girls at the counter if they had seen the recent news, and apparently they are OK because this particular branch is a franchise.

While I was enjoying my costly coffee, two cars came through the drive thru, (about 30-mins).  Judging by the lack of custom, franchise or not, no business can sustain two staff, rates, electricity etc with just a handful of customers at morning rush hour.