Starbucks Announces Store Closures in US, UK as Part of conversion Strategy
SEATTLE – Starbucks is closing some of its stores in the united States and the United Kingdom as part of a extensive restructuring plan initiated by CEO Brian Nicole, the company announced Thursday. The closures, along wiht other measures, aim too revitalize the coffee chain amid increasing competition and a decline in customer confidence.
The move comes as Starbucks faces challenges including competition from drive-thru focused cafes and a growing unionization effort among its employees. Analysts at T-Count noted that despite firm measures to enhance business, Starbucks’ US sales are facing increased competition. The company is also working to address concerns about understaffing and worker fatigue.
Nicole, who previously spent six years managing a Chipotle Mexican Grill, oversaw a doubling of sales during his tenure there. His current strategy for Starbucks includes redesigning stores to improve seating and reopening self-service spice stations.
The closures impact both company-operated stores and licensed locations. Starbucks did not specify the exact number of stores affected, but confirmed the changes are part of a broader effort to “restore the confidence of uncomfortable customers.”
The Workers United union, representing employees in over 600 US Starbucks stores, criticized the restructuring announcement, stating it is an indication of “things going towards a decline in Starbucks under the leadership of Brian Nicole.” The union also expressed concern that decisions are being made “without any interference from café workers” and has requested information about the planned closures.
The union is currently negotiating a contract agreement with Starbucks,addressing issues such as staffing levels and worker fatigue. The restructuring announcement follows a period of increased scrutiny on Starbucks’ labor practices and a growing wave of unionization efforts across its American stores.
