Starbucks, the well-known coffee chain, is making significant changes in the United States and Canada. The company announced it will close about 200 stores, which is roughly 1% of its total locations in these countries. These closures are part of a larger plan led by CEO Brian Niccol to focus on stores that are performing well and providing a better experience for customers.
The stores being closed are ones where it is difficult to create the welcoming environment customers expect. Starbucks wants each location to feel cozy, comfortable, and ideal for enjoying a coffee break. Stores that don’t meet these standards or don’t show a path to financial performance will shut down.
Even though some stores are closing, Starbucks plans to renovate more than 1,000 locations and invest in new store openings. Niccol said the company wants every coffeehouse to deliver a “warm and welcoming space” with a great atmosphere. Renovated stores will feature refreshed interiors, improved seating, and inviting designs to encourage customers to spend more time in the cafes.
Canada and Mexico strengthen trade and security cooperation amid US tariffs
Corporate Lob Cuts Affect Employees
Alongside the store closures, Starbucks will lay off 900 corporate employees, marking the second round of job cuts this year. Earlier, 1,100 corporate positions were eliminated in February.
The company explained that these cuts, overseen by CEO Brian Niccol, are needed to redirect more resources to stores. By reducing corporate costs, Starbucks plans to hire additional baristas, improve service during busy times, and make store visits faster and more efficient.
The layoffs affect office staff rather than employees working in stores. Starbucks said the decision is part of a larger effort to streamline operations while ensuring stores have the resources needed to operate effectively. These changes aim to improve service times and customer satisfaction, especially during peak hours.
Bernie Sanders Fires Back at Starbucks CEO’s Jaw-Dropping $96 Million Paycheck
Changes in Stores and Service Under New Leadership
Under Niccol’s leadership, Starbucks has introduced several operational changes in stores to improve the customer experience. One of the main changes is simplifying the menu, removing almost a third of items to make ordering faster and reduce complexity for baristas.
The company is also speeding up service, with drinks prepared in four minutes or less. Customers staying in the cafe can enjoy free refills on coffee or tea, and there are no extra charges for non-dairy milks. Non-dairy milks are plant-based alternatives to regular milk, like soy, almond, or oat milk. Starbucks allows these without extra charges for in-store drinks.
US and Turkiye move closer as talks focus on oil, sanctions, and fighter jets
Starbucks is redesigning its stores to make them more welcoming. Upgrades include better seating arrangements, ceramic mugs for in-store drinks, and cozy interiors designed to encourage customers to linger. Early results show that upgraded stores are seeing more frequent visits, while additional baristas during busy periods have improved service, sales, and transaction times.
The company has faced challenges as some customers choose either cheaper coffee options or more premium specialty cafes. Starbucks has been described as “too fancy to be basic, too basic to be fancy.” Niccol’s plan focuses on balancing quality coffee, a welcoming environment, and fast service to appeal to a wide range of customers.
Starbucks is moving forward with store closures, corporate layoffs, and store upgrades. While some locations will close, the company is investing in other stores to enhance the customer experience. These changes reflect a shift in how Starbucks operates in the U.S. and Canada under Brian Niccol’s leadership, focusing on improving service and creating better store experiences for customers.