Starbucks to close 250 stores: 'Difficult decision'

Key Points:

• Starbucks plans to close approximately 250 stores across North America this week, representing about 1% of its 18,000 locations, due to underperformance and inability to deliver the desired customer experience, according to COO Mike Grams.
• The closures come shortly after Starbucks resolved a lawsuit in Florida related to its diversity, equity, and inclusion (DEI) practices, agreeing to pay $1 million and eliminate race- and sex-based hiring and promotion goals companywide.
• Under the settlement, Starbucks committed to complying with Florida’s civil rights laws by prohibiting race- and sex-based preferences in employment, executive compensation, mentorship, supplier selection, and board composition.
• Starbucks will also refrain from participating in organizations that mandate increasing racial diversity on its board and must submit annual compliance certifications for four years to Florida authorities.
• Florida Attorney General James Uthmeier emphasized that the resolution ensures employment decisions at Starbucks are based on merit, qualifications, and character, not race or sex, reinforcing adherence to civil rights laws.