Nationwide Consolidation Targets Six Sacramento-Area Cafes
Starbucks is shuttering six coffee shops across the Sacramento region as part of a broader corporate culling of 250 North American locations, according to Abridged. The affected regional branches include sites in Midtown Sacramento, South Sacramento, Arden Arcade, North Natomas, and Roseville. The company’s upcoming closures represent just over one percent of the coffee giant’s 18,000 stores across North America.
According to oregonlive.com, Chief Operating Officer Mike Grams stated that leadership reviewed the North American portfolio to find locations unable to consistently deliver the desired customer experience or achieve acceptable financial performance. Affected employees were informed of the impending shutdowns as news broke, with some workers potentially facing relocation to other operating cafés. Baristas at the Midtown location who do not receive transfers were informed they would obtain sixty hours of pay as part of a severance package.
Corporate Restructuring Follows Previous Industry Reductions
The latest operational cutbacks mark the second major wave of closures under the leadership of chairman and chief executive officer Brian Niccol. A prior round of reductions occurred roughly a year ago, resulting in hundreds of closures nationwide alongside layoffs for approximately 900 corporate employees. Alongside the store reductions, the corporation has pursued a turnaround strategy involving the redesign of more than 1,000 coffeehouses while continuing to open new outlets.
Labor organizations monitoring the situation noted that unionized branches are included in the nationwide reductions. Starbucks Workers United reported that twenty unionized stores are among the 250 locations slated to close, though the union has not yet reached a master contract with the corporation. Meanwhile, customers in Midtown Sacramento expressed surprise at the sudden loss of a long-standing neighborhood fixture that had operated for decades.