Starbucks to Close At Least Two Stores in San Antonio Amid Restructuring

SAN ANTONIO, Texas – Starbucks has announced the closure of at least two locations in San Antonio as part of a broader plan to shut down hundreds of stores across the U.S., Canada, and Europe.

The company has not confirmed the exact number of store closures but plans to update its store locator by Sunday. As of June 29, Starbucks had 18,734 locations in North America and expects to reduce that number to 18,300 by the end of its fiscal year on Sunday.

According to TD Cowen analyst Andrew Charles, approximately 500 North American stores are expected to close in the fourth quarter of Starbucks’ fiscal year. In a letter to employees, CEO Laxman Narasimhan acknowledged that a review identified stores lacking financial stability or failing to meet customer expectations.

“Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations,” Narasimhan wrote, noting that closing locations impacts employees and customers.
Starbucks plans to invest $1 billion into the restructuring effort, which includes $150 million allocated for employee separation benefits and $850 million for closing stores and exiting leases.

Starbucks’ stock price decreased by 1.38% since Thursday. While the exact number of unionized stores among those closing remains unclear, over 650 company-owned U.S. Starbucks locations have voted to unionize since 2021 without a contract agreement.

Starbucks Workers United, the labor group representing these employees, expressed concerns that the closures occurred without input from baristas. They stated plans to negotiate at each unionized location to ensure workers’ job placements at nearby stores.

This announcement follows earlier conflicts regarding a new dress code for unionized workers, which sparked discontent over reimbursement issues for new clothing. Starbucks claimed to base its decision on consistent criteria and stated union representation did not affect the closures.

As a result of the closures, Starbucks is projected to finish the fiscal year with 124 fewer North American stores. This marks a rare event for the company, which typically adds locations.

Narasimhan, known for his turnaround strategies, joined Starbucks a year ago and hopes to revitalize the brand. Previous efforts to enhance efficiency led to the layoffs of 1,100 corporate employees and the cancellation of several hundred job postings earlier this year. Starbucks has struggled with declining same-store sales and is focusing on improving staff levels and customer experiences in the coming months.