Starbucks is pulling the plug on roughly 250 North American stores, targeting locations the coffee giant says cannot meet its standards or find a path to acceptable financial results.
Chief Operating Officer Mike Grams announced the cuts Thursday in a letter addressed to “Partners.” The stores are set to shut later this week, though Grams said most of the chain’s more than 18,000 North American locations remain profitable.
“We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” Grams wrote.
“As a result, we will close approximately 250 coffeehouses later this week. This represents approximately 1% of our more than 18,000 North America coffeehouses,” he added.
Starbucks also acknowledged the impact on the people who work at and frequent the targeted stores.
“Closing any coffeehouse is a difficult decision, and we know today’s news will be hard for the partners, customers and communities affected,” the statement said.
The cuts follow a separate legal development for Starbucks: a nationwide agreement to drop race- and sex-based employment preferences and pay Florida $1 million to resolve a lawsuit over its diversity, equity and inclusion policies.
The settlement, reached last week, extends beyond Florida. State Attorney General James Uthmeier’s office told Fox News that it covers Starbucks operations throughout the country.
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Uthmeier sued the company in December 2025, alleging its workplace policies used racial and sex-based goals, quotas, and preferences in violation of the Florida Civil Rights Act.
“Every Floridian deserves to be hired, promoted and compensated based on merit, qualifications and character — not race or sex,” Uthmeier told Fox News Digital. “This resolution ensures that Starbucks’ policies and practices fully comply with Florida’s civil rights laws. DEI can never be an excuse to violate civil rights.”
The agreement puts Starbucks under a four-year certification requirement. Its chief legal officer must certify annually that the company continues to comply, while the $1 million payment to the Florida Department of Legal Affairs will reimburse the office for its work and expenses in pursuing the case.
Starbucks committed to following the state’s civil rights law, with the agreement covering race- and sex-based preferences in hiring, promotions, pay, executive compensation, mentorship programs, supplier selection and board composition.
The coffee chain also agreed to stay out of organizations that require members to increase racial diversity on their boards of directors.
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[ H/T Trending Politics ]
