Starbucks Rebranding
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Starbucks to Cut 900 Jobs and Close 1% of Locations
PYMNTS.comยท 2025-09-25 16:41
Core Insights - Starbucks is implementing a turnaround plan that includes eliminating 900 jobs and closing stores as part of a strategic review of its North American operations [1][2][3] Store Operations - The coffee chain plans to reduce its store count by 1%, resulting in a total of 18,300 locations in the United States and Canada [2] - The decision to close certain stores is based on an assessment of locations that do not meet customer expectations or financial performance criteria [3] Customer Experience Initiatives - Starbucks is focusing on creating a more inviting and relaxing environment in its coffeehouses, aligning with CEO Brian Niccol's vision [3] - The company has promoted "sit and stay" visits to counteract declining foot traffic and sales, allowing customers to buy beverages in reusable containers for free refills [4] Marketing and Brand Strategy - Starbucks is investing in advertising on TV and streaming platforms to enhance its brand appeal and encourage customers to visit [4] - The company plans to improve its mobile app, mobile order-and-pay features, and rewards program in the upcoming year [4] Performance Metrics - Early results from initiatives aimed at enhancing the coffeehouse experience indicate that customers are visiting more frequently, staying longer, and providing positive feedback [5]