Starbucks announces “Green Apron Service” to revive the experience
Starbucks has launched a nationwide “Green Apron Services” initiative with the aim of improving speed, personalization and hospitality in its 11,000 stores.
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Starbucks will close 1% of locations in the US and North America, cutting around 900 jobs as part of Starbucks’ transformation strategy, CEO Brian Niccol told employees on Thursday, September 25th.
Specialty Coffee Chains will close certain locations with “where they cannot create the physical environment that their customers and partners expect, or they cannot see a path to financial performance.”
Employees at these locations were notified this week and he said they are eligible for a transfer to a nearby location. The 900 reduction in the “current non-retail partner role” is part of the company’s goal of “building towards a better Starbucks.”
People whose work has been eliminated will be notified on the morning of Friday September 26th, he said. “We offer generous retirement and support packages.
A Starbucks employee demanding work “is asking me to work from home today and tomorrow at the office,” Nicole said.
Starbuck Cut Job, close some low performance locations
The move is part of a “return to Starbucks” strategy enacted by Nicole, former Chipotle CEO who became Starbucks’ CEO in September 2024.
“We are investing in Green Apron Partner’s time, more partners in our stores, outstanding customer service, increased wallet design, and innovations that will create the future,” he said in the memo. “We will continue to manage costs carefully and focus on key areas that drive long-term growth.”
During Nicole’s tenure, Starbucks has opened new locations, upgraded many of the current coffee houses, and has a more comfortable environment offering additional seating, additional power outlets and free coffee refills. The company “raising over 1,000 locations to introduce texture, warmth and layered designs,” Nicole said.
The company recently announced that it will “pick up” 80-90 Starbucks in more than 20 states. The locations were “designed for mobile orders only and for quick pickups without waiting,” the company said at the time.
“These steps are to enhance what we see and prioritize resources for them,” Nicole said in the memo. “The early results of coffee house uplifts show that customers visit more frequently, stay longer and share positive feedback. As more partners work in busy times, there are more partners.
How many Starbucks locations will be closed?
Starbucks did not provide a list of locations closed. However, about 1% is expected to close, meaning that 150-200 are likely to be closed.
The company has 18,300 Starbucks Coffee Houses at the end of the fiscal year, October 31, including the operating and licensed locations of the US and Canadian companies.
Back in May, around 1,200 Starbucks workers went to STRIKEV to protest the new dress code policy. Recently, three employees filed class action lawsuits in Illinois and Colorado, charging a company that allegedly refused to refund the costs to meet the new dress code.
Starbucks stocks have fallen by about 7% so far this year. The company recorded a revenue increase of 3.8% in its recent quarterly profit report, earning $9.5 billion for the three months ended June 29th, compared to $9.1 billion in the same period last year.
The company, which had 17,230 stores in the US at the time, said its North American equivalent store sales had fallen by 2% from the previous year.
Contribution: Amaris Encinas Michelle Del Rey
Mike Snyder is a national trending news reporter for USA Today. You can follow him in the thread, send BlueSky, X with X and send him an email Bliss & @mikegsnider.bsky.social & @mikesnider &msnider@usatoday.com
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