In the employee message on Thursday, Niccol said that the company has reviewed and identified the stores in which the company is “unable to create the physical environment that our customers and partners expect, or where we do not see a path to financial performance.”
Starbucks executive officials had previously said that the company would slow new openings in favor of redesigning existing websites this year. The renovated cafes aim to encourage customers to continue, and to restore the coffee chain to their roots as the “third place” for consumers, outside the home and the office.
After the announcement of Thursday, the Starbucks share was almost flat in the pre -market trade. The stock has decreased more than 7 % this year.
In addition to focusing on customer experience, Niccol has made additional changes on operations, including returning to four days in the office, starting next month.
Partners,
I am grateful to the work that everyone is doing to develop world -class customer service in the center of everything we do and focus on creating a high Starbucks experience for every customer, every time.
Although we are making good progress, there is a lot to do to build a better, stronger and more flexible Starbucks. As we approach the beginning of our new financial year, I share two decisions that we made to support our back to the Starbucks plan. Both are based on setting our client resources to the customer so that we can create a wonderful cafe, provide customer service at a global level and business development.
Changes in some of our cafes
First, I participated earlier this year that we were carefully reviewing the North American Café’s portfolio through the additional lens of our back to the Starbucks plan. Our goal is to provide every café warm and welcoming space with a wonderful atmosphere and seat for every occasion.
During the review, we have identified cafes where we cannot create the physical environment that our customers and partners expect, or where we do not see a way to financial performance, and these sites will be closed.
Every year, we open and close the cafes for several reasons, from financial performance to expiration. This is a more important procedure that we understand will affect partners and clients. Our cafes are centers of society, and closing any place is difficult.
To put it in the context: Given that we have already opened many cafes over the past year, our general number that the company runs in North America will decrease by about 1 % in the fiscal year 2025 after calculating both openings and closure.
We will finish the fiscal year with about 18,300 sites out of the total Starbucks – run by the company and its license – throughout the United States and Canada. In the fiscal year 2026, we will grow the number of coffee we work as we continue to invest in our business. Over the next 12 months, we also plan to raise more than 1,000 sites to provide more texture, warmth and layer design.
The partners will be notified in the cafe that is scheduled to be closed. We are working hard to provide transfers to nearby sites wherever possible and we will move quickly to help the partners understand the opportunities that may be available to them.
For those we cannot put immediately, we focus on partner care including comprehensive separation packages. We also hope to welcome many of these partners to Starbucks in the future with the opening of new cafes and the number of partners grow in each site.
Reducing the roles of non -falling partner
Second, we do further reduce the number of employees and expenses that are not available. This includes the difficult decision to eliminate about 900 current non -medium partner roles and close many open situations.
While we build about a better Starbucks, we invest in the hours of green partners, more partners in stores, exceptional customer service, high cafes designs and innovation to create the future. We will continue to manage costs carefully and continue to focus on the main areas that drive long -term growth.
The non -experimental partners whose roles are canceled tomorrow morning (Friday) will be notified. We will offer generous and support, including benefits extensions.
Unless your job requires you to be at the site in the office, we ask you to work from home today and tomorrow.
What next
These steps are to enhance what we see is to work and set the priorities of our resources against them. Early results of the climbing of customers who often visit, stay longer and exchange positive comments. Where we invested in more hours of the green apron partner so that there are more partners who work at crowded times, we have seen improvements in transactions, sales and service times, along with more happier and more involved partners.
I know that these decisions affect our partners and their families, and we did not take them lightly. I think these steps are necessary to build a better, stronger and more flexible Starbucks that deepen their impact on the world and create more opportunities for our partners, suppliers and societies that we serve.
To these partners who will leave, I want to say deeply. For those who continue our journey to transform, I am very appreciated by your commitment to help us return to Starbucks.
Brian
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