Starbucks Plans Over 400 Store Closures Amid $1B Turnaround Effort

Starbucks is undergoing significant changes under CEO Brian Niccol, who has initiated a $1 billion restructuring plan that includes closing over 400 underperforming stores and laying off 900 employees to improve financial performance and store experience. The company is also investing in a "coffeehouse uplift" program, allocating $150,000 per store for upgrades aimed at enhancing customer experience and operational efficiency, with plans to complete at least 1,000 store improvements by the end of 2026. Despite these efforts, Starbucks faces challenges such as slowed same-store sales, high prices deterring customers—especially middle and upper-middle-class households—and a shift in consumer behavior favoring drive-thru and at-home coffee consumption. The closures and restructuring reflect a broader attempt to balance convenience with maintaining Starbucks' "third place" identity, though some customers and workers express concerns about the loss of community feel. Analysts view the turnaround as ongoing but necessary, noting that Niccol's leadership at Chipotle suggests potential for meaningful improvement if changes are effectively scaled across Starbucks' extensive store network. Overall, Starbucks is striving to redefine its customer experience and operational model amid competitive pressures and changing market dynamics.