Southern California coffee runs might soon involve a slight detour for some, as Starbucks appears to be closing 36 of its locations across the region.
These potential local closures are part of a broader plan by the Seattle-based coffee giant to pare down its North American footprint. Starbucks announced it would shut down 250 locations, which represents about 1% of its more than 18,000 stores across North America.
The company's Chief Operating Officer, Mike Grams, stated in a Thursday letter posted on Starbucks’ website that the stores slated for closure did not meet the chain's expectations for customer experience or long-term financial performance. This strategic move comes as Starbucks grapples with increased competition in the coffee market, a factor that has contributed to slowing sales.
Brian Niccol, who took over as Chief Executive in 2024, has initiated a turnaround plan aimed at making Starbucks stores more inviting. This current round of closures follows previous actions, as the company has already closed more than 600 stores in North America and Europe, alongside laying off hundreds of non-retail employees.
Despite these consolidations and restructuring efforts, Starbucks reported some positive figures recently. The company's global comparable-store sales were up 7.9% for the fiscal third quarter compared to last year, with North American store sales seeing an 8.1% increase.
While Starbucks has not publicly listed the specific stores set to be shut, the company did note that affected locations had signs in their windows. However, a Starbucks fan known online as Winter compiled a spreadsheet of likely closures based on locations listed as closed for the coming week in the company’s app, a process reported by SFGate. This spreadsheet includes the 36 Southern California locations now believed to be shuttered.
Checks confirmed these 36 Southern California locations are no longer listed in the Starbucks app. Some are designated as “permanently closed” on Google, while others did not respond to phone calls. Starbucks did not respond to a request for confirmation regarding the closure of these specific locations.
The company has stated it will offer support to employees at affected locations, including potential transfer opportunities to other stores. Those who are unable to transfer will receive severance support, according to Starbucks.
