The coffee giant Starbucks said Thursday it was closing 250 underperforming stores across the country this week.
The affected stores, which make up about 1 percent of the company’s 18,000 restaurants in the United States, either did not meet expected customer-experience levels or fell short of financial expectations, Mike Grams, the chief operating officer of Starbucks said in an announcement early Thursday.
While the North American “business has returned to strong growth,” some coffee houses “continue to underperform,” Mr. Grams said in the message.
The company will take $300 million in restructuring charges from the closures, related to exiting leases and employee benefits.
Other restaurant chains are struggling as consumers reduce their spending, a response to higher prices at grocery stores and gas stations. Yet customers have continued to flock to Starbucks for their Pumpkin Spice Lattes and Strawberry Açaí Lemonade Refreshers.
Starbucks has reported improved foot traffic and store sales over several quarters under the turnaround plan designed by the chief executive, Brian Niccol, who joined the company in 2024. He has tackled a long list of customer complaints, from long wait times for drinks to a lack of seating in cafes.
For the most recent quarter ending June 28, Starbucks reported sales in stores in North America open for at least a year were 8.1 percent higher from year-earlier levels.
Shares of Starbucks were flat in early trading. The company’s stock is up 11.7 percent over the past year.
Closing lagging stores has been a part of Mr. Niccol’s playbook. A year ago, Starbucks shuttered more than 600 underperforming stores. He also orchestrated the sale of 60 percent of its retail operations in China, which had been a lag on the company’s performance, to a private equity firm in a deal valued at $4 billion.
As part of its turnaround strategy, Starbucks is making massive investments, from hiring additional staff to upgrading technology that gets lattes and refreshers into the hands of customers faster.
“We brought back cup writing, condiment bars, ceramic mugs and free refills. We announced standards that make it easier for customers to sit and stay,” Mr. Niccol wrote in a message to the company earlier this month on his second anniversary as chief executive. “Uplifts are bringing back seats, warmth and personality to our cafes. And we are making sure every coffeehouse earns its place.”
But those investments have pressured profits. As a result, Mr. Niccol is looking to cut $2 billion in annual costs from Starbucks by 2028.
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