Hu Xiu·2025-09-28 01:19Core Viewpoint - Starbucks is undergoing a significant restructuring aimed at optimizing efficiency in mature markets, which includes closing hundreds of stores in North America and Europe and laying off approximately 900 non-retail employees [1][2]. Group 1: Restructuring Details - The restructuring plan will cost $1 billion, which includes $150 million for severance and $850 million for store closures [2]. - Starbucks will reduce its North American store count from 18,743 to 18,300 by the end of September, marking an unprecedented contraction [1]. - The closures will affect underperforming stores, including the Reserve Roastery in Seattle, which is the first of its kind globally [1]. Group 2: Market Challenges - The coffee market is shifting from a focus on expansion to efficiency, with competition now centered on single-store performance, digital experiences, and supply chain resilience [3]. - Starbucks has seen a decline in same-store sales in North America for six consecutive quarters, with a 2% drop reported in the third quarter of fiscal 2025 [3][4]. - The tolerance for high-priced coffee is decreasing among consumers, leading to intensified competition from brands offering lower price points [4][5]. Group 3: Strategic Implications - The restructuring reflects deeper strategic challenges, including rising operational costs and the need to close inefficient stores to enhance profitability [6][7]. - The departure of the CTO suggests potential internal conflicts regarding the strategic direction of the company [8]. - Starbucks is also considering selling its China operations, with negotiations ongoing with several investment firms, which could reshape its market presence [9].