Latest sign that Starbucks is in deep trouble
Trouble could be brewing at America's biggest coffee chain.
Starbucks will close more than 400 locations — 54 of which are in New York City —after reporting six straight quarters of sales declines.
The Seattle-based giant gave no notice of the closures, causing chaos for employees, landlords, and customers.
Last week, the company laid off 900 workers, which was its second round of mass layoffs this year, as part of a sweeping $1 billion restructuring plan.
Chief executive Brian Niccol said the cutbacks were 'necessary to build a better, stronger and more resilient Starbucks.'
The company operates approximately 18,300 coffeehouses in the US and Canada.
A specific figure for the closures has not been announced. Starbucks said the number of stores would decline by 1 percent, which translates into approximately 430 to 520 stores.
Investopedia checked local newspapers and employee lists circulating on social media, then cross-referenced locations with the Starbucks app and phone calls to compile a list of 467 locations that have shut their doors permanently this week.
Starbucks announced that it will shut one percent of its North American stores by the end of the 2025 fiscal year (pictured: the shuttered Starbucks flagship roastery in Seattle)
Starbucks announced plans to shut down hundreds of cafes and lay off about 1 percent of its corporate staff
The company's announcement follows a review of Starbucks locations that revealed many are falling short of financial performance targets.
Executives also said some cafes will close because they failed to create the environment customers expect, according to a letter sent by Niccol.
The top boss has focused on making the coffeehouses a nicer place to stay. Dining areas now feature printed newspapers, easier menu options, and hot coffee served in mugs.
'Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations,' Niccol wrote.
'This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult.'
Niccol, is a turnaround specialist who was brought into Starbucks a year ago this month to give the brand a jolt.
Brian Niccol, Starbucks' top boss and Chipotle's former leader, is trying to turn around the chain's struggles with calmer cafes and simpler menu offerings
Under Niccol's leadership, the struggling Chipotle chain, where Niccol was chief executive for about six years, essentially doubled its revenue and its profit, and stock price, soared.
The coffee chain is hoping for a similar, caffeine-induced spike.
Starbucks said it will offer severance and support packages for affected employees.
The Daily Mail has reached out to Starbucks for comment.
