News Summary
Starbucks has announced plans to close three of its locations in the Triangle area of North Carolina, including Raleigh and Durham, as part of a nationwide restructuring effort. This decision is influenced by ongoing sales challenges and aims to improve profitability and customer experience. The initiative is part of a broader strategy termed the ‘Back to Starbucks’ plan, which includes changes in store design and operational efficiency. Affected employees will be notified soon, with some offered transfers and others potentially receiving severance packages.
Raleigh and Durham, North Carolina
Starbucks plans to close three locations in the Triangle area of North Carolina, which includes Raleigh and Durham, as part of a broad restructuring initiative. The closures are part of a nationwide effort to revamp store operations amid ongoing sales challenges, affecting a total of seven locations across North Carolina.
Details of the Closures
The company announced that the upcoming closures are part of a long-term strategy to improve profitability and customer experience, citing underperformance at certain stores. As of the end of fiscal year 2025, Starbucks expects to have approximately 18,300 locations in the U.S. and Canada, representing a slight decrease of about 1% in the total number of company-operated coffeehouses in North America.
In Starbucks’ latest earnings report covering the third quarter, the company reported having a total of 18,734 stores in North America, with 11,453 being operated directly by the company. The projected closures—estimated to number between 114 and 187 stores—include both company-operated and licensed locations, with specifics yet to be publicly disclosed.
Reasoning and Strategy
The closures are driven by the company’s “Back to Starbucks” initiative, led by CEO Brian Niccol, launched in September 2024. Since then, Starbucks has introduced a series of changes, including redesigning stores and removing fees for non-dairy milk options. The goal is to foster better customer and partner experiences, with stores that cannot meet these standards being considered for closure.
Niccol emphasized that store performance, customer experience, and financial viability are key factors in determining which locations will close. The company aims to realign its model and focus on its most effective stores, while discontinuing less successful outlets.
Other Changes and Affected Stores
Earlier this year, Starbucks announced it would be ending its mobile order and pick-up only store concept by fiscal year 2026. The pickup-only stores, which are designed to offer quick service, have been criticized for being “overly transactional and lacking warmth.” Currently, about 90 pickup-only locations operate across North America.
The company has not released a specific list of locations to be closed. Affected workers at closing stores will be notified in the coming week. Some employees may transfer to other stores, while others could receive severance packages as part of the transition.
Cost-Cutting Measures and Workforce Adjustments
As part of its restructuring efforts, Starbucks plans to eliminate approximately 900 non-retail jobs and close multiple open non-retail positions to reduce costs. These layoffs follow a previous round in February, which saw the company cut 1,100 non-retail roles, further indicating a shift toward operational efficiency.
Background Context
Starbucks has been navigating sales declines during recent years, prompting the company to implement various strategic changes. The company’s reorganization aligns with broader efforts to adapt to consumer preferences, streamline operations, and strengthen the brand’s market position across North America.
Overall, these developments indicate a period of significant transition for Starbucks as it redefines its store footprint and operational model in response to evolving customer expectations and economic challenges.
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Additional Resources
- News Observer
- Wikipedia: Starbucks
- 9News
- Google Search: Starbucks store closures
- AL.com
- Google Scholar: Starbucks restructuring business
- USA Today
- Encyclopedia Britannica: Starbucks
- MassLive
- Google News: Starbucks closures
Author: STAFF HERE RALEIGH WRITER
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.
