News Summary
Starbucks is closing three of its locations in the Triangle area, including Raleigh and Durham, as part of a wider corporate restructuring initiative. This decision is included in a strategy aimed at addressing sales declines and enhancing financial health under CEO Brian Niccol. In total, seven stores across North Carolina will shut down, with further implications for employee positions and the company’s operational structure as it plans for future growth while eliminating underperforming outlets.
Raleigh and Durham, North Carolina—Starbucks is set to close three locations in the Triangle area, including in Raleigh and Durham, as part of a broader corporate restructuring plan.
Details of Store Closures and Company Strategy
In total, seven Starbucks stores across North Carolina are scheduled to shut down, with official confirmation coming from WNCN. The store closures are part of a large-scale effort to address ongoing sales declines and improve financial health under a new strategic direction led by CEO Brian Niccol.
Niccol explained that the closures are aligned with the “Back to Starbucks” strategy introduced to boost financial performance. These efforts aim to optimize store locations and eliminate underperforming outlets that do not meet the company’s standards for environment or profitability.
Scope and Impact on Store Count
By the end of the current fiscal year, Starbucks projects it will operate approximately 18,300 locations across the U.S. and Canada. This figure represents a decline of about 1%, equating to approximately 114 stores out of the current total of 18,734 stores in North America. Out of these, approximately 11,453 stores are company-operated.
Including licensed stores, the total closures could number around 187. The ratio of company-operated to licensed stores guides the overall cutback plan, which aims to streamline operations and focus on profitable locations.
Criteria for Store Closures and Future Plans
According to Niccol, locations will be closed where Starbucks cannot create the anticipated physical environment or foresee a clear path to achieving expected financial performance. This strategic evaluation prioritizes stores that can deliver a stronger customer experience and financial returns.
Additionally, in July, Starbucks announced it would discontinue its mobile order and pick-up-only concept in fiscal year 2026, citing concerns that it lacked a personal touch. Around 90 Pick Up locations across the country will be affected; some of these will close permanently, while others will revert to traditional coffeehouse formats.
Impacts on Employees and Cost Reduction Measures
Employees working at stores scheduled for closure will be notified within the week. Some staff members may be transferred to other Starbucks locations, while others could receive severance packages as part of the transition plan. The company is also planning to eliminate approximately 900 non-retail roles, including many open positions, as part of its cost-reduction initiative.
This move marks Starbucks’ second major layoff announcement for the year. In February, the company announced cuts to about 1,100 non-retail roles. These layoffs are part of broader efforts to reduce operational costs and streamline corporate functions.
Future Growth Strategies
Despite current cutbacks, Starbucks remains committed to future growth. The company plans to uplift more than 1,000 stores in the upcoming year, indicating a strategic focus on expansion and increased market presence once restructuring efforts stabilize.
Summary
Starbucks’ decision to close seven stores in North Carolina, including three in the Triangle, reflects a nationwide restructuring effort aimed at improving performance amid sales declines. The company’s ongoing strategy involves cost-cutting measures like store closures, staff layoffs, and portfolio realignment, balanced with plans for future expansion and store enhancement.
Deeper Dive: News & Info About This Topic
HERE Resources
Starbucks to Close Three Locations in Raleigh-Durham Area
Additional Resources
- The News & Observer
- AL.com
- USA Today
- MassLive
- AOL
- Wikipedia: Starbucks
- Google Search: Starbucks store closures
- Google Scholar: Starbucks business strategy
- Encyclopedia Britannica: Starbucks
- Google News: Starbucks closures
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RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
