Starbucks Corporation has just embarked on the largest corporate restructuring the company has ever attempted. Taken collectively, this plan will lead to the elimination of over 900 positions and shutter dozens of non-performing locations in the U.S. and UK. This decision is the manifestation of a larger plan to create more operational flexibility and provide a better customer experience.
With the pandemic, the coffee giant is shuttering its under-performing stores. For now, they’re planning their attention pretty squarely on North America where the majority of impacted stores are. The closures will simplify operations and reduce customer wait time. This is especially important because the company is pulling out all the stops to inflate its sales numbers.
Starbucks’ Chief Executive Officer, Brian Niccol, emphasized the weight of this decision, stating that it represents “a more significant action that we understand will impact partners and customers.” He elaborated on the rationale behind the closures, indicating that some stores were “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”
This is another way in which Starbucks has demonstrated its commitment to expanding in the UK market. To meet this demand, they’re hoping to roll out 80 new stores nationwide. This expansion reinforces the company’s continued focus on investment, despite making moves to close or sell off underperforming locations.
The comprehensive program of restructuring and updating is designed to improve Starbucks’ overall performance. This will reduce overall underperforming store locations, while providing a better customer experience at the stores that remain open. The company’s ultimate goal is to shift the overall environment so that what’s best for customers makes financial sense.