Starbucks announced that they will be closing 1% of their store locations in the U.S. and North America before the end of their fiscal year, which ends over the weekend. The store closures will result in a loss of about 900 jobs.
The specialty coffee chain will close specific locations “where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance,” CEO Brian Niccol said in a memo sent to employees and posted on the Starbucks blog on Sept. 25.
Here’s what to know.
Why is Starbucks closing stores?
The closures are part of the “Back to Starbucks” strategy, instituted by Niccol, the former Chipotle CEO who left to become Starbucks’ chief executive in September 2024.
“We’re investing in green apron partner hours, more partners in stores, exceptional customer service, elevated coffeehouse designs, and innovation to create the future,” he said in the memo. “We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth.”
Starbucks shares are down about 7% so far this year. The company posted a 3.8% revenue gain in its most recently quarterly earnings report, with $9.5 billion in the three-month period ending June 29, compared to $9.1 billion in the same quarter a year ago.
The company, which had 17,230 stores in the U.S. at the time, said North American comparable store sales declined 2% from the previous year.
Are any Starbucks stores in Indianapolis or Indiana closing?
Starbucks has not yet released a list of stores that will be affected.
When will Starbucks employees learn if their store is being closed?
The memo stated 1% of stores will be closed by the end of Starbucks’ fiscal year, which concludes this weekend.
Employees at the locations set to close will be notified this week and will be eligible for transfer to nearby locations, he said. The reduction in 900 “current non-retail partner roles” is part of the company’s goal to “build toward a better Starbucks,” Niccol said.
“We expect to engage in effects bargaining for every impacted union store, as we have done elsewhere, so workers can be placed in another Starbucks store according to their preferences,” Starbucks Workers United said in a statement emailed to IndyStar.
Those whose jobs are being eliminated will be notified Friday morning, Sept. 26, he said. “We will offer generous severance and support packages including benefits extensions.”
Any Starbucks employee whose job requires them to be “on site in the office, we’re asking you to work from home today and tomorrow,” Niccol said.
Story continues after photo gallery.
How many Starbucks locations will close?
With about 1% expected to close, that means 150 to 200 are likely being shuttered.
The company will have nearly 18,300 Starbucks coffee houses, including company operated and licensed locations, in the U.S. and Canada, at the end of its fiscal year, which is Oct. 31. “In fiscal year 2026, we’ll grow the number of coffeehouses we operate as we continue to invest in our business,” Niccol said.
Back in May, about 1,200 Starbucks workers went on strike to protest a new dress code policy. More recently, three employees filed class-action lawsuits in Illinois and Colorado charging the company with allegedly refusing to reimburse them for expenses to meet the new dress code.
“Fixing what’s broken at Starbucks isn’t possible without centering the people who engage with the company’s customers day in and day out,” the union, which is currently urging the company to finalize a union contract, said in its statement.
Starbucks Indianapolis
There are more than 30 Starbucks locations in Indianapolis. To find the store nearest to you, visit starbucks.com/store-locator.
Contributing: Amaris Encinas and Michelle Del Rey
Mike Snider is a national trending news reporter for USA TODAY. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com
Katie Wiseman covers trending news for IndyStar and Midwest Connect. Contact her at klwiseman@gannett.com. Follow her on Bluesky @katiewiseman
This article originally appeared on Indianapolis Star: Starbucks announces store closures, which could result in a loss of 900 jobs. Here’s what we know.
Reporting by Katie Wiseman and Mike Snider, USA TODAY NETWORK / Indianapolis Star
USA TODAY Network via Reuters Connect
