Starbucks Shrinks Stores, Boosts Experience in $1B 'Back to Starbucks' Plan
Starbucks is optimizing its operations and investing in customer experience. The coffee titan has reduced construction costs by 30% and plans a new, smaller store prototype. Meanwhile, it's closing underperforming stores and reducing corporate staff, impacting around 900 roles. The changes are part of a $1 billion 'Back to Starbucks' plan.
Starbucks is set to introduce a new stand-alone store prototype in 2026, featuring 32 seats and a drive-through. This follows the company reducing construction costs by about 30%. The savings will be redirected into stores, with plans to hire additional customer service staff and update coffeehouse designs.
Starbucks CEO Brian Niccol is overseeing a restructuring effort. Around 1% of North American company-owned stores, including the iconic Starbucks Reserve Roastery in Seattle, will close. About 900 non-retail jobs will be cut. Employees will be notified on Sept. 26 and will receive severance and support packages, including benefits extensions.
Starbucks is decreasing its store count by about 1% in the U.S. and Canada this fiscal year. Despite the closures, the company plans to invest in 1,000 locations over the next year to enhance the traditional coffeehouse experience. Small, targeted renovations are planned, with an investment of roughly $150,000 per location to restore removed chairs. The restructuring effort is expected to result in a better, more efficient Starbucks experience for customers.
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