Starbucks Shakes Things Up With Store Closures And Job Cuts

When it comes to corporations, some things are universal regardless of what that corporation does. You always want the goodwill of your customers, but you need the goodwill of your shareholders. One way to demonstrate to your shareholders that you care about them is by being proactive when it comes to cutting costs. 

Recently, Starbucks announced that they will be closing nonprofitable stores in the US and Canada. 

According to Seattletimes.com,
‘On Thursday, Starbucks said it will close 1% of its stores in the US and Canada while cutting 900 jobs.
Investors largely shrugged at the announcement. Wall Street might have wanted deeper cuts for a company with 360,000 employees as of last year and 41,000 locations globally.’ 

After the announcement, Starbucks stock went down by 1%. 

There is much more to Starbucks plan to profitability and trimming the staff and locations is only part of it. The idea is to take stores that are not profitable and get rid of them so they can focus on stores that are already making money and then make them more inviting to customers. In a way, stepping back to the old business model for Starbucks. 

Starbucks is systematically going through these stores that they want to hang on to and making changes to make them more inviting to customers and to encourage their customers to stay and hang out. 

Starbucks is also paring down their menu making it easier for you to order and for them to create beverages to reduce wait time, as well as adding new items to the menu that appeal to their customers changing tastes. 

The most visible store closure for Starbucks is in Seattle at the 11-year-old flagship “Reserve Roastery” at 1124 Pike St.   

Starbucks has a new vision to change from a place to pick a coffee cup of coffee to a place where you can kick back and saver a cup of coffee. Will this make the customers happy? We'll have to wait and see if it makes the stockholders happy.
Starbucks Store Closures Get Shrug With Investors Wanting More | The Seattle Times
Starbucks’ closes tech-infused flagship roastery in Seattle as part of broader shake-up at coffee giant