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Starbucks closes Seattle's Reserve Roastery
The Starbucks Reserve stores in Seattle's Capitol Hill and SODO neighborhoods are now closed. The coffee giant confirmed the two are closing as part of 180 stores being shut down as the company restructures.
SEATTLE - The Starbucks Reserve Roastery in Seattle's Capitol Hill neighborhood has closed, a move the company said is part of a broader plan that includes the closure of other North American coffeehouses and the elimination of hundreds of non-retail roles.
The shuttered store, which was boarded up overnight, posted a letter thanking the neighborhood for hosting them since 2014. The company said it will help its former employees with the transition.
Letter at Starbucks Reserve Roastery.
What they're saying:
A review of Starbucks locations revealed that many are falling short of financial performance targets or are failing to create the environment customers expect, the company's Chairman and Chief Executive Officer Brian Niccol said in a letter on Thursday.
"Our goal is for every coffeehouse to deliver a warm and welcoming space with a great atmosphere and a seat for every occasion," Niccol said. "I know these decisions impact our partners and their families, and we did not make them lightly. I believe these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers, and the communities we serve."
What's next:
As part of the turnaround plan, the company will be laying off about 900 non-retail roles and will notify employees whose positions are being eliminated early Friday. Starbucks said it will offer severance and support packages for affected employees.
In the coming days, Starbucks plans to close an undetermined number of stores.
Niccol said Starbucks will see a 1% decline in its total company-operated store count for fiscal year 2025 after accounting for both openings and closures. The company plans to grow the number of coffeehouses in fiscal year 2026.
The company will end the fiscal year with nearly 18,300 total locations across the U.S. and Canada.
Starbucks Reserve Roastery in Seattle's Capitol Hill neighborhood.
The Reserve Roastery unionized in 2022 and the company clarified this did not have to do with the store employee's decision to unionize. Workers were currently negotiating a new contract with the company. Earlier this week, a rally was held for more staffing, on-the-job protections and pay.
The Source: Information in this story came from a letter from Starbucks' CEO Brian Niccol, a letter from the Starbucks Reserve Roastery, original reporting by FOX 13 Seattle and the Associated Press.
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