COO cites unacceptable financial results, customer experience for closures
Starbucks' has announced it is closing roughly 250 underperforming coffeehouses across North America.
The closures, disclosed in a regulatory filing this week, represent about 1% of Starbucks' North American store count. They will generate roughly US$300 million in restructuring charges — about US$200 million of which is tied to early lease exits and employee separation benefits.
When CTV News asked Starbucks how many Canadian locations would close, how many workers would be affected, and where, the company declined to say.
Starbucks reduced its pace of new store openings, down to roughly 440 net new global locations this fiscal year from a prior target of 600 to 650.
In a letter to employees, Starbucks COO Mike Grams said the locations being closed are not delivering acceptable financial results or not providing the kind of experience that Starbucks wants for customers and employees, according to Global News.
He also said the company is continuing to retrofit its North American coffeehouses to make them cozier and more inviting. The company expects 1,500 stores will be retrofitted by Sept. 30, which is the end of Starbucks’ fiscal year, said the outlet.
Payroll employment was nearly flat in June in Canada, with HR teams in retail and hospitality among those dealing with job losses even as average weekly earnings kept climbing.
However, a recent survey found Canadian employers feeling more positive about hiring for the second half of 2026 than they were a year earlier — yet nearly half of companies still plan to hold headcount steady rather than expand, and finding qualified candidates remains the top challenge employers cite.
