Starbucks closing stores, including iconic Seattle roastery, as CEO deepens restructuring

Core Insights - Starbucks is closing underperforming stores in North America, including its Seattle roastery, as part of a restructuring effort led by CEO Brian Niccol, which is expected to cost $1 billion to revive sales [1][2] - The overall store count in the U.S. and Canada is projected to decrease by 1%, equating to several hundred stores, by the end of the 2025 fiscal year [2] - The closures include a flagship unionized location in Seattle and a unionized store in Chicago, amidst ongoing contract negotiation disputes with the Workers United union [2][3][4] Union Relations - Talks between Starbucks and the Workers United union, representing over 12,000 baristas, have stalled since April, with strikes occurring during the peak holiday season [3] - The union criticized the closures, emphasizing the need for union support for baristas and plans to negotiate for affected workers to be transferred to other stores [5] - Starbucks stated that the union status of stores did not influence the decision to close them [5] Restructuring Strategy - CEO Niccol's strategy focuses on investing in stores to reduce service times and restore a coffeehouse atmosphere while streamlining management [6] - The company has experienced a series of quarterly sales declines in the U.S. due to changing consumer preferences and increased competition [6]