Major Coffee Chain to Shut Down Two Locations as Part of Reinvention Plan
Two Starbucks locations in Ithaca, New York, are set to close down on May 26 as part of the company’s “reinvention plan.” The coffee chain stated that the closures are not related to the fact that the locations voted to unionize. The remaining Starbucks stores in Ithaca will shut down as the company aims to transform its store portfolio.
Reinvention Plan Focuses on Updating Store Designs and Changing Consumer Behavior
According to Starbucks, the reinvention plan focuses on updating outdated store designs and changing consumer behavior. The company has experienced more than 900 partner absences in the past eight months, which has impacted store operations. Other store closures in DuPage, Illinois, Detroit, Michigan, and Fresno, California, have been announced this year.
Union Stores Targeted for Closure
Starbucks has also targeted union stores, including the one in Ithaca on College Avenue, which closed in June 2022. Another union store in Cleveland Circle in Boston, Massachusetts, was closed down temporarily due to plumbing issues. Willow Montana, the Cleveland Circle Starbucks shifts manager, raised concerns about the closure, stating that the company has been aware of the plumbing problem but has not done anything to permanently fix it.
Other Fast-Food Restaurants Closing Down
Aside from Starbucks, other fast-food restaurants have announced closures, such as Burger King and McDonald’s, which did not meet sales expectations.
Final Thoughts
The closure of the two Starbucks locations in Ithaca marks the latest in a series of store closures by the coffee chain. The company’s focus on updating store designs and adapting to changing consumer behavior is an important strategy for remaining relevant in a competitive market.