Starbucks closing shops including iconic Seattle toaster as CEO deepens the redevelopment

Provided by Juuveria Tabassum and Waylon Cunningham

(Reuters) -Starbucks said Thursday that he would close inferior stores in North America, including his iconic Seattle toaster, as CEO Brian Niccol presses his redevelopment efforts, which would be expected to cost $ 1 billion to revive the company’s flag sales.

Coffee Change is expected to decrease by 1%or several hundred stores by the end of the Fiscal Year of the Fiscal Year. Niccol is trying to restore the “café” network of the network to bring customers back after six consecutive consecutive sales of US sales.

Among the closed shops was the Starbucks sample union location in Seattle, in a large cafe with an internal toaster, the company confirmed.

Starbucks and Workers United Union, representing more than 12,000 baristas, have begun in April last year, but since then struck the wall.

December Some members of the Union withdrew from work in roads in US cities through a strike that took place for a few days during the peak holiday season.

Seattle shops near its headquarters were voted for the Union in 2022, and Union was collecting a store for negotiations on contract disputes on Monday.

The Union confirmed that the union shop in Chicago, Ridge Avenue, was also closed. The Baristai store was collected on Thursday morning, according to a plan before the shop closing was known, the Union said.

Baristai came from the shops throughout the Chicago area. “We are here to remind the company that it is the employees that actually bring people to the shops,” said Diego Franco, who came from the Chicago DES PLAINES.

A Starbucks spokesman said the status of the store was not a “decision -making process”.

Starbucks employees United criticized closing in a statement. “It has never been clearer why barists need to support the Starbucks Union,” the union said, adding that it plans to negotiate the affected staff so they could be transferred to other stores.

TD Cowen analysts estimate that the redevelopment has affected about 500 stores owned by North American companies.

Niccol attempt to update

In the first year of work, I struck Niccol by investing in Starbucks stores to reduce service time and restore coffee house, as well as cut control layers.

The company announced a decline in quarterly sales in the US, as demand for expensive Latkes received from consumers causing a selection and competition.

“During the review, we found cafes where we cannot create a physical environment that our customers and partners expect, or where we do not see the way to financial activities, and these places will be closed,” Niccol said in a letter to employees.

The CEO stated that the company would finish the fiscal year with nearly 18,300 Starbucks seats – the company owned and licensed – throughout the US and Canada. This is comparable to 18,734 places revealed in July. In the regulatory application.

The company hopes that most of the stores will be completed by the end of this fiscal year, which will increase the number of stores in its company in North America by approximately 1%.

Investing in faster services

Niccol has enjoyed investors’ confidence since he took over the leadership of the Chipotle Mexican Grill, where he was credited to managing the Burrito network.

“Starbucks” takes more aggressive actions related to effort. There are more shop closing than we expected while we believe that the dismissals correspond to the management’s previously published budget system, “said TD Cowen analyst Andrew Charles.

Starbucks said on Thursday that reduction in jobs would be on support teams, adding that the company would also close many open positions.

From 2024 September 29th. The company employed about 10,000 people who play more than just the roles of Coffee-House in the US.

“This is a more significant action we understand, will affect partners and customers,” Niccol said.

At the same time, Starbucks are investing in staff improvement and technology involvement in more efficient sequence orders in their cafes and improve customer experience.

The company said earlier this year by abolishing 1100 companies. August She also announced a modest 2% march for all paid employees this year in North America.

Starbucks shares did not decrease slightly during the afternoon. Since Niccol has taken over 2024. In August, they rose about 9%.

(Juuveria Tabassum messages in Bengaluuru, Waylon Cinningham New Yorkel and Heather Schlitz in Chicago; Edited by Leroy Leo, Sriraj Kallulula and Anil d’Ilva)