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Starbucks is closing hundreds of locations
CNN • • business
Key Points:
- Starbucks is set to close approximately 250 locations, about 1% of its North American stores, as part of ongoing efforts to improve customer experience and financial viability.
- The closures will cost the company around $300 million, including $200 million for lease terminations and employee severance.
- CEO Brian Niccol is leading a multi-year turnaround plan involving store renovations, service improvements, and menu simplification to drive growth.
- Despite the closures, Starbucks plans to open about 440 new locations globally this fiscal year, down from an earlier forecast of 600 to 650.
- The company reported a 7.9% increase in same-store sales in the US during its latest quarter, indicating positive momentum in its turnaround strategy.
