Starbucks recently announced the launch of a restructuring plan totaling US$1 billion, involving the closure of underperforming company-operated stores and a new round of layoffs. According to a filing submitted to the U.S. Securities and Exchange Commission, most of the store closures will be completed before the end of fiscal 2025, with US$150 million for employee severance and US$85 million covering lease termination and asset disposal costs. CEO Niccol said in an open letter to employees that some stores failed to meet financial targets or create the environment customers expect, so the decision was made to immediately close some stores in North America. Foreign media reports say the restructuring will affect hundreds of coffee shops in the United States and Canada, including the world's first Roastery in Seattle's Capitol Hill and the SODO Reserve store in the company's headquarters building. This Roastery, which opened in 2014, is not only a pilgrimage site for Starbucks fans but also one of the first unionized stores in the brand's history, and its permanent closure without warning has sparked employee speculation about union suppression. At the same time, about 900 non-retail employees will receive layoff notices, marking the second round of layoffs since Niccol took office. Although the Europe, Middle East and Africa business is proceeding as planned, some stores in the UK, Switzerland and Austria will also close due to a portfolio review. [more…]

Recently, the news that Starbucks' first store in Guangzhou is about to close has attracted widespread consumer attention. This coffee shop, once famous for being open 24 hours, holds countless memories and emotions for many people. From adjusting its business hours during the pandemic to now facing closure, its departure is not only the end of a store but also reflects the balancing challenge Starbucks faces between expansion and optimizing its layout. Meanwhile, long-established stores in Shenyang, Hong Kong, and other places have also successively announced the end of their operations, with longtime customers expressing their reluctance. This article will take you through the story of this first Guangzhou store, as well as the market logic behind Starbucks' recent store closure trends. [more…]

Recently, news that Chongqing's first Starbucks store is about to close has sparked heated discussions on social media. Since opening in February 2006, this store located in Sanxia Square in Shapingba has accompanied the citizens of this mountain city for 18 years, expanding from two floors to three and upgrading to a Reserve store, carrying the youthful memories of countless people. However, as the lessor withdraws entirely, the store will officially cease operations at the end of this month. The brand responded that it has opened a new store in Huayuzhou Plaza, just a hundred meters away, to continue serving customers. At the same time, factors such as the wave of traditional department store closures and changes in foot traffic in commercial districts have led people to speculate that Starbucks may have other considerations behind this move. This article takes you through the past of this iconic store and explores the multiple reasons behind its closure. [more…]

Starbucks, as the world's largest chain coffee brand, is undergoing a continuous contraction of its business. Since the beginning of this year, it has successively been reported to be selling its businesses in South Korea and Russia, and its UK business is also under consideration. The situation is similarly unsettled in its home market, the United States: The Wall Street Journal reported that 16 stores will be permanently closed before the end of July. Meanwhile, a video leaked on Twitter shows former CEO Howard Schultz saying at an internal meeting that store closures are only the beginning and that more will follow in the future. Howard mentioned that employees at listening sessions reported that personal safety has become their primary concern, involving issues such as mental illness, homelessness and crime, and that some profitable stores have also been forced to close due to rising safety risks. At the same time, some union members accused Starbucks of using rising crime rates to cover up its actions against unionization, while Starbucks denied this. [more…]

Starbucks' first Reserve flagship store in South China—the two-story standalone store at Shenzhen MixC World—will officially close permanently after business hours on October 12. This iconic store, which had been open for nearly eight years, was once the largest standalone Starbucks in Shenzhen, and it now comes to an end due to the expiration of its contract and adjustments in the business district's tenant mix. After the news spread, many regular customers felt deep regret. At the same time, Starbucks has also been closing stores at multiple locations in Shenzhen, sparking speculation about adjustments to its market layout. This article will review the store's history, customer reactions, the reasons for its closure, and Starbucks' response, along with related recommendations from Front Street Coffee. [more…]

Starbucks recently implemented a $1 billion restructuring plan, closing hundreds of underperforming company-operated stores in North America, which triggered a wave of mass layoffs. In front of the global headquarters in Seattle's SoDo district, baristas and union members gathered to protest, holding up signs to express strong dissatisfaction with the company's decisions. Laid-off employees said they only learned of their job losses through prerecorded phone calls and social media, without being offered any opportunity to transfer. Union data shows that 59 unionized stores across the United States were permanently closed in this round of adjustments, with 369 people in Washington State facing permanent layoffs. Meanwhile, New York City regulators also pointed out that Starbucks is suspected of violating labor laws. This labor conflict is continuing to escalate, and the union stated that if their demands are not addressed, they do not rule out expanding actions or even going on strike. [more…]

Starbucks officially announced recently that its seventh store in Shanghai—the standalone Shikumen building store located at the main entrance of the Xintiandi commercial area, opened after the company entered Shanghai in 2000—will permanently close on December 16. This landmark coffee shop, which has accompanied Shanghai residents for 24 years, was renovated multiple times and upgraded to a Reserve store in 2021, holding countless memories of dates, study sessions, and daily coffee runs for many people. The closure announcement has sparked widespread regret, with netizens speculating that it may be due to failed rent negotiations after the lease expired. Meanwhile, several long-operating Starbucks stores in Shanghai have also closed one after another, prompting sighs that an era is quietly coming to an end. [more…]

As 2024 draws to a close, Starbucks has been reported closing stores in multiple locations across China. Its store at Wuhan Hongshan Square subway station quietly withdrew, and an old outlet in Nanning Parkson, after twelve years of operation, announced it would close at the end of the month. Add to that the earlier closure of its first store in Changsha, and this chain coffee brand, which has been deeply rooted in the Chinese market for over twenty years, is now facing multiple pressures: rising rents, declining foot traffic, and competition from low-priced coffee. Last month's news that it was "considering selling a stake in its China business" has only fueled speculation about its future direction. This article will review recent store closures, analyze the complex reasons behind them, and retain the "Front Street" brand-related recommendations. [more…]

Once hailed as the "most beautiful Starbucks in Changsha," the IFS Reserve store is about to close its doors. This flagship outlet, which opened in 2018 with a two-story space and several brand-first designs, has been confirmed to permanently close after business hours on the evening of March 21 due to lease expiration and adjustments to the mall's business mix. From its Black Eagle coffee machine to its academy-style reading area, it created check-in memories for countless coffee lovers and was regarded as a landmark of Changsha's urban lifestyle aesthetics. Now, the original site will be taken over and renovated by the trendy toy brand Pop Mart, leaving many residents and visitors deeply reluctant to see it go. [more…]

Starbucks recently announced that it will permanently close 16 U.S. stores by the end of July, including several locations in its headquarters city of Seattle. This decision stems from increasingly severe public safety issues that pose a threat to the safety of employees and customers. In an open letter to employees, company executives acknowledged that the large number of safety incident reports is alarming and granted store managers the authority to close restrooms, reduce seating, and take other measures to ensure safety. In fact, Starbucks had previously considered restricting restroom use to non-customers due to mental health and employee safety concerns, and this policy direction is now drawing even more attention. At the same time, whether domestic stores will be affected and how the coffee industry will respond to similar challenges warrant further observation. [more…]

Recently, news emerged that the Starbucks Reserve store at Guangzhou's Parc Central is set to close, with official confirmation that it will officially cease operations in the coming days. This store, which opened in 2017, was created by Starbucks to celebrate its 15th anniversary of entering the South China market and was once hailed as "one of Guangzhou's most design-forward stores." Unlike previously closed old stores located in declining foot traffic commercial districts, this closure is in a core commercial area of Tianhe District, surrounded by luxury brands, and the store was almost always full on a daily basis. However, high rent, low table turnover caused by the open-plan space, and phenomena such as "people only checking in for photos without consuming" may have made it difficult for the store to be profitable after deducting costs. Starbucks stated that the reason for the closure is adjustments to the business mix in the commercial district and said there are still more than 10 nearby stores for consumers to choose from. [more…]

As coffee consumption demand continues to climb after the easing of the COVID-19 pandemic, Starbucks employees in the United States are facing multiple pressures, including a surge in workload, understaffing, and aging equipment. Against the backdrop of a unionization wave sweeping across more than a hundred stores nationwide, Starbucks announced that it will close a unionized store in Ithaca, New York, on June 10. The union immediately filed a lawsuit, accusing the decision of violating federal labor law and constituting retaliation against union activity. Starbucks denies any connection, attributing the closure to facilities, staffing, and attendance issues. Both sides hold firmly to their own accounts, and the conflict continues to escalate. [more…]

The Starbucks store at Wangfujing Department Store in Changsha's Wuyi Square, the brand's first location in Hunan Province, has recently been reported to be permanently closing. Having operated for fourteen years, this store not only witnessed Starbucks' expansion in Changsha but also carried the coffee memories of countless residents. However, with intensifying competition among tea and coffee brands in the Wuyi commercial district, adjustments to commercial leasing policies, and changes in Starbucks' market strategy, this iconic store has ultimately reached its end. This article will review the store's glorious past, analyze the possible reasons for its closure, and present the regret expressed by local residents. [more…]

Tims China has always held a special place in consumers' minds—many people remember it not for its coffee, but for the bagel on its breakfast menu. However, this chain brand, known for its bagels, has recently been plagued by frequent store closure news. The first Tims store in Yinchuan, which was also the brand's 700th store in China, the Xinhua Department Store location, quietly closed after less than a year in operation, prompting regret among local consumers. Looking at the entire commercial district, this store was surrounded by 3 Luckin Coffee, 2 Starbucks, and 1 Cotti Coffee locations, highlighting the intense competitive pressure. More notably, Tims stores in Beijing, Shanghai, Nanjing, Dalian, and other cities have also successively announced closures. From the thousand-store target in its financial reports to the 885 stores counted by Narrow Door Dining Eye, Tims' expansion path seems to be facing severe challenges. This article will start with the closure of the first Yinchuan store to analyze Tims' current operating situation and market challenges. [more…]

Recently, Starbucks has frequently trended on social media due to its "pay-to-sit" policy, sparking intense discussions among netizens. At the same time, Starbucks has been continuously active in distributing coupons and offering discounts in live-streaming rooms, with the price of a single beverage even dropping below 20 yuan, in sharp contrast to its earlier stance of "having no intention of participating in a price war." To balance revenue and expenditure, Starbucks is also controlling labor costs internally, with some office-building stores choosing to close and suspend operations on holidays. Although the brand has pulled out all the stops to attract customers, consumers' complaints that it is "overpriced and bad-tasting" remain undiminished. Front Street Coffee has observed that in China's increasingly cutthroat coffee market, it is becoming harder and harder for Starbucks to maintain its high posture. [more…]

A quaint shop on Gushan Road by West Lake recently put up a Starbucks sign, though the location was originally the COSTA Xiling store. After COSTA moved out in August this year, Starbucks quickly took over this prime spot, incorporating Chinese elements into the store design, drawing tourists and locals to check in. Meanwhile, COSTA has been closing stores across many parts of the country, with only 393 stores remaining, far more closures than openings. What netizens once joked about—"Starbucks replacing COSTA"—has ironically come true, which is quite lamentable. Front Street Coffee reminds us that behind the brand turnover is a microcosm of rising rents in the West Lake commercial area and intensifying competition in the coffee market. [more…]

Recently, construction hoarding has gone up at the former site of the Starbucks Reserve store in the Wuhan Tiandi Xintiandi district, as the sportswear brand lululemon is set to move in. This Reserve store, which opened in 2016, was once Starbucks' third store in China to offer nitro cold brew and featured the country's first Barista Craft Room creative space, and was officially defined as "the most Wuhan Starbucks Reserve store." Over eight years, it became a landmark in the district and a top choice for relaxation in consumers' hearts thanks to its unique environment and art wall. Now its quiet departure has prompted many netizens to express regret. As for the reason for the closure, outsiders speculate that it is related to too many nearby stores or rising rent. Starbucks is currently maintaining operations in the Xintiandi inner street with a mobile coffee cart, and whether it will reopen in a new location remains to be seen. [more…]

Located in the Santang Scenic Area of West Lake in Hangzhou, Shihan Jingshe is a historic building first constructed in 1936. Since 2007, it has been leased by Starbucks and hailed by many coffee lovers as the "most beautiful Starbucks by West Lake." Recently, the leasehold rights to the property were auctioned off after hundreds of rounds of bidding, finally selling for 2.521 million yuan per year, nearly 700,000 yuan above the starting price. The original tenant has waived the right of first refusal, meaning the Starbucks store, which has operated for nearly 15 years, will soon exit this prime scenic location. After the new owner takes over, the business format will still focus primarily on a coffee bar, pre-packaged foods, and retail of handicrafts. This article reviews the history of this store, Starbucks' store layout in Hangzhou, and the market factors behind the successive closures of coffee shops in scenic areas. [more…]

Over the past year, the domestic coffee sector has undergone an unprecedented reshuffle. Data from Zhaomen Canyan shows that nearly 53,000 new stores opened in the past year, but net growth was only just over 6,000, meaning more than 45,000 coffee shops have quietly exited. From the microcosm of all four coffee shops in a residential compound shutting down, to the sharp contraction of chain brands such as Benlai Budgaiyou and Seesaw, to top brands like Starbucks and Manner adjusting their store layouts, the wave of closures has swept across operators of different scales. At the same time, coffee bean futures prices hit a record high, and with cost pressure compounded by market saturation, many coffee shop owners find it hard to be optimistic about the outlook. This article reviews industry data and typical cases to present this hard battle over the survival of stores. [more…]

In 2020, the pandemic and financial scandals plunged the coffee industry into a wave of store closures, with brands like Starbucks, Luckin Coffee, and Coffee Box scaling back their offline operations. Yet amid the doubts, the coffee market quietly grew stronger, as an expanding consumer base, an influx of new brands, and innovative sales channels together pushed the industry into the spotlight. This article reviews the ups and downs of the past year, analyzes how the coffee market gradually won attention, and explores its future prospects. [more…]