
News Link • Business/ Commerce
Latest sign that Starbucks is in deep trouble
• https://www.dailymail.co, By MARTHA WILLIAMSStarbucks will close more than 400 locations — 54 of which are in New York City —after reporting six straight quarters of sales declines.
The Seattle-based giant gave no notice of the closures, causing chaos for employees, landlords, and customers.
Last week, the company laid off 900 workers, which was its second round of mass layoffs this year, as part of a sweeping $1 billion restructuring plan.
Chief executive Brian Niccol said the cutbacks were 'necessary to build a better, stronger and more resilient Starbucks.'
The company operates approximately 18,300 coffeehouses in the US and Canada.
A specific figure for the closures has not been announced. Starbucks said the number of stores would decline by 1 percent, which translates into approximately 430 to 520 stores.
Investopedia checked local newspapers and employee lists circulating on social media, then cross-referenced locations with the Starbucks app and phone calls to compile a list of 467 locations that have shut their doors permanently this week.
The company's announcement follows a review of Starbucks locations that revealed many are falling short of financial performance targets.
Executives also said some cafes will close because they failed to create the environment customers expect, according to a letter sent by Niccol.
The top boss has focused on making the coffeehouses a nicer place to stay. Dining areas now feature printed newspapers, easier menu options, and hot coffee served in mugs.
'Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations,' Niccol wrote.
'This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult.'