WEALTH October 24, 2025 0 Comments

Starbucks Shakes Up Its Empire: Why Hundreds of Stores Are Suddenly Closing and What That Means for Investors

Ever wonder how a coffee giant like Starbucks plans to stay on top when the going gets tough? Well, buckle up, because they’re not just stirring lattes — they’re brewing up a bold new strategy that involves shuttering stores and shedding hundreds of jobs worldwide. Yeah, it’s a tough blend to swallow, especially when demand for those pricey espresso shots is cooling off and the cost of coffee beans is sky-high thanks to wild weather hitting Brazil and Colombia. With Brian Niccol at the helm, Starbucks isn’t just tightening the belt; they’re reinventing the game, aiming to turn cafes back into cozy “third places” for folks to hang out. But here’s the kicker — can a 1% store reduction really shake things up enough to restore its fortunes? Let’s dive into this corporate makeover that’s as rich and complex as your morning brew. LEARN MORE

Starbucks will close stores and cut hundreds of staff as part of a major worldwide restructuring plan aimed at restoring its fortunes, writes David Connett.

The coffee chain said its overall store count will drop by 1 per cent this year.

The business operates around 520 company-owned stores in the UK, as well as franchise-owned coffee shops.

Starbucks has not revealed how many UK stores will be affected and where they are located.

The Seattle-based firm said it would also cut 900 corporate staff, most of whom are in the US.

The cuts are the second round of layoffs since Brian Niccol became chief executive last year.

Niccol has said the job losses are needed to direct more resources for improving staff training and its cafes.

Starbucks said it had reviewed its stores in North America, its biggest market, concluding that “certain stores have been identified for closure where it has not been possible to create the physical environment customers and partners (employees) want, and where there isn’t a path to financial performance.

“In Europe Middle East & Africa (EMEA), we have conducted a similar review of our company-operated store portfolio with the goal of ensuring that our stores are correctly located, generating appropriate levels of foot traffic and operating in the right formats.

“While the EMEA business is on track to meet its commitment to open 80 new stores in the UK and 150 across EMEA this financial year, some stores in the UK, Switzerland and Austria will close as a result of this portfolio review.”

Starbucks is trying to reduce expenses at a time when demand for its pricey lattes has tempered, particularly in North America.

The chain also faces surging coffee prices after adverse and extreme weather led to poor harvests in coffee-producing nations like Brazil and Colombia, hitting supplies.

It is renovating stores to encourage customers to stay longer, a return to Starbucks’ roots as a so-called “third place” for consumers.