Starbucks to Suspend Operations at Five New Jersey Outlets Amid National Retrenchment
Starbucks plans to close several stores, including at least five in New Jersey, in a nationwide restructuring to reduce underperforming sites. This statement comes as the coffeehouse business focuses on efficiency, customer experience, and finances.
Starbucks is closing shops as part of its “Back to Starbucks” initiative to evaluate its North American footprint and prioritize “warm and welcoming” stores. CEO Brian Niccol informed staff that shops that no longer match design standards or lack a sustainable business path will close. In fiscal 2025, Starbucks expects to operate 18,300 stores in the U.S. and Canada, down 1%.
Early reports show affected addresses in Fort Lee, Morristown, West New York, and Manchester Township, New Jersey. The corporation has not said which outlets will close. Starbucks said affected “partners” (workers) will receive warnings this week and that the business is working to offer transfers or severance for those who cannot move.
Regional closures correlate with a bigger national cut. Starbucks announced it will close hundreds of outlets in the U.S., Canada, and portions of Europe and eliminate 900 non-retail jobs to save costs. The fourth quarter may harm 500 North American retailers, analysts say.
Niccol stressed that store performance and ability to meet changing customer expectations, not union affiliation or employee participation, dictated closures. Starbucks aims to “uplift” over 1,000 locations by adding texture, warmth, and layered design to make them more welcoming.
The move is prompted by low comparable sales, increased prices, lease expirations, and changing consumer habits. Starbucks’ growth and profits have slowed in recent quarters. The shutdown of stores in Fisherman’s Wharf, the Castro, and other Bay Area locations have garnered attention. Starbucks will close four New York sites, including one in Albany and three in the Hudson Valley.
Starbucks says closing outlets is necessary to refocus the brand and focus resources on more profitable countries, but devoted customers and employees are understandably upset. The corporation offers transfers and severance to affected personnel. Starbucks promises to restart growing after the reset by opening and renovating shops in its upcoming fiscal year.
The New Jersey cuts illustrate Starbucks’ recalibration approach to close underperforming stores and strengthen better ones. The redesign and consolidation may require customers in affected communities to change their routines, but Starbucks looks determined to becoming leaner, more focused, and more customer-centric.
Sources
– Starbucks internal announcement
– Patch reporting on New Jersey store closures
– Associated Press coverage of Starbucks restructuring
– Barron’s analysis of Starbucks’ cost-cutting measures
– San Francisco Chronicle report on Bay Area closures
– Times Union coverage of New York closures
