Starbucks Cuts 900 Stores Amid Restructuring Efforts to Boost Sales and Cut Costs

Starbucks Announces Closure of US and UK Stores Amid Restructuring Efforts In a move aimed at reducing costs and reviving sales, Starbucks announced the closure of approximately 900 stores in the United States and the United Kingdom. The coffee chain's chief executive, Brian Niccol, stated that the closures are part of a broader restructuring effort to improve operational efficiency and customer experience. According to sources, most of the affected locations are in North America, with some stores in the UK, Switzerland, and Austria also slated for closure. This decision comes on the heels of Starbucks' February announcement to eliminate 1,100 jobs and simplify its US menu in an attempt to boost flagging sales. "This is a more significant action that we understand will impact partners and customers," Niccol said in a statement, acknowledging the gravity of the situation. "We are committed to creating a better experience for our customers and partners, and this decision is a necessary step towards achieving that goal." The closures are expected to result in approximately 900 job losses, although Starbucks emphasized its commitment to supporting affected employees through the transition process. Industry analysts attribute the move to Starbucks' struggles with sales growth and increasing competition in the coffee market. "Starbucks has been facing challenges in recent years, including declining sales and increased competition from specialty coffee chains," said David Henkes, a senior principal at Technomic. "By closing underperforming stores, Starbucks is attempting to refocus its efforts on more profitable locations and improve operational efficiency." The decision also reflects the company's ongoing efforts to adapt to changing consumer preferences and market trends. "As consumers become increasingly discerning about their coffee choices, Starbucks must continue to innovate and evolve its offerings to remain competitive," said Mark Kalinowski, a restaurant industry analyst. Starbucks remains committed to expanding its presence in key markets, with plans to open 80 new stores in the UK this year as part of its EMEA (Europe, Middle East, and Africa) business strategy. The company's efforts to revamp its operations and improve customer experience are expected to have a significant impact on the coffee industry. In a statement, Niccol emphasized that the closures were not taken lightly, but rather were necessary to ensure the long-term success of the company. "We understand that this decision will be difficult for our partners and customers, but we believe it is essential to creating a better experience for everyone involved," he said. As Starbucks embarks on this new chapter in its history, industry observers will closely monitor the company's progress and assess the effectiveness of its restructuring efforts. *Reporting by Bbc.*