Starbucks has announced a consultation process that could lead to the closure of several of its company owned stores across the UK, leaving uncertainty and concern for many of its UK workers. The coffee chain, which operates around 520 company-owned sites alongside a network of franchise outlets, employs more than 5,600 people right across the country.
At present, the company has not disclosed how many stores will be affected, their locations, or the exact number of workers at risk. The decision comes after Starbucks carried out a wide-ranging review of its business across Europe, the Middle East and Africa (EMEA), focusing on profitability, location suitability, and customer demand.
A company spokesperson explained:
“We have conducted a review of our coffeehouse portfolio in North America and certain stores have been identified for closure where it has not been possible to create the physical environment customers and partners (employees) want, and where there isn’t a path to financial performance. In EMEA, we have conducted a similar review with the goal of ensuring our stores are correctly located, generating appropriate levels of foot traffic and operating in the right formats.”
Store closures and expansion plans
Despite the closures, Starbucks has confirmed that it remains committed to the UK market. The firm is planning to open 80 new sites in Britain and around 150 across the wider EMEA region within the financial year. However, stores in the UK, Switzerland and Austria will be affected by the latest review.
The company has pointed to sites that are not performing sustainably or do not meet evolving customer expectations as key reasons for the closures.
This move follows a series of cost-cutting decisions made under the leadership of chairman and chief executive Brian Niccol, who joined the firm a year ago. In February, Niccol announced plans to cut 1,100 roles, while more recently Starbucks revealed it would reduce its North American store portfolio by 1 per cent and cut around 900 head office positions.
Niccol has faced criticism in the past for his use of a private jet to commute between California and Seattle, but he has remained firm on his plans to streamline the company’s operations and improve financial resilience.
Impact on UK workers
For workers across the UK, the announcement of potential store closures raises concerns over job security and the future of employment in the hospitality and retail sectors. The lack of clarity about which stores are affected adds further anxiety for those employed at Starbucks outlets nationwide.
While new store openings may offer some opportunities, they may not necessarily be in the same regions as those earmarked for closure. This uncertainty highlights the broader challenges facing workers in industries that continue to grapple with shifting consumer habits and rising operating costs.
The Workers Union will continue to monitor developments closely, ensuring that the voice of UK workers remains central to discussions around corporate restructuring and job security.
As Starbucks pushes forward with its restructuring plans, UK workers face an anxious wait for clarity. Although the company stresses its commitment to expansion in Britain, the prospect of closures remains a stark reminder of the pressures affecting retail and hospitality businesses in today’s economic climate.
