Starbucks abruptly closes dozens of NYC locations in ‘chaotic' downsizing: ‘No warning, no heads up'

Core Insights - Starbucks is closing over 400 stores nationwide, including 54 locations in New York City, due to six consecutive quarters of sales declines and a $1 billion restructuring plan [1][2][11] - The closures have caused chaos among employees, city officials, and landlords, with reports of abrupt notifications to landlords without prior communication [3][4] Company Actions - The company identified stores where it could not create the expected physical environment for customers and partners, leading to the decision to close [5] - Starbucks CEO Brian Niccol emphasized the need to shut down locations that do not show a path to financial performance [7] Legal and Labor Issues - The city of New York has warned Starbucks that it may be violating local labor laws by not offering jobs to employees at closing locations, as mandated by the Fair Workweek Law [8] - The Department of Consumer and Worker Protection has given Starbucks a deadline to explain compliance with these labor laws [8] Market Challenges - Starbucks faces increased competition from new entrants and fast-food chains, such as McDonald's, which is testing new beverage concepts [9] - The company is also dealing with rising coffee prices due to new tariff policies, contributing to its struggles with sales trends [11]