A Starbucks location in Old Town will reportedly close today as part of a sweeping national restructuring effort announced by CEO Brian Niccol on Thursday.
The Starbucks at King & Union streets — located at 100 S. Union Street — will close permanently on Friday, according to customers who visited the location. The closure comes as part of Starbucks’ plan to close roughly 400 underperforming stores across North America, representing about 1% of the company’s locations.
In a letter to employees Thursday, Niccol said the company underwent a review of its footprint and the locations that will close were ones “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”
The closures are part of Niccol’s $1 billion “Back to Starbucks” restructuring plan, which also includes laying off approximately 900 corporate employees and investing in store renovations to encourage customers to linger in locations. Starbucks expects to end its fiscal year with almost 18,300 North American locations, including both company-operated and licensed cafes. The company’s fiscal year ends at the end of September.
Niccol acknowledged the difficulty of the closures, writing: “Our coffeehouses are centers of the community, and closing any location is difficult.”
Starbucks has not released a complete list of closing locations, though the company said its app will be updated Sunday to reflect stores that remain open. Many Starbucks employees have been sharing closure announcements on social media platforms.
ALXnow has reached out to Starbucks for comment.
The closures reflect broader challenges facing Starbucks under Niccol, who took over as CEO in September 2024. The company’s same-store sales have fallen for six straight quarters, hurt by increased competition and price-conscious consumers. Starbucks’ closures were driven by consumers who moved away from urban centers during the Covid-19 pandemic, and the chain is now shedding leases in areas that have notably less business, according to retail analysts.
Niccol is attempting to reposition Starbucks as a “third place” between home and work, reversing the company’s heavy focus on mobile orders. Under Niccol, Starbucks has brought back its tradition of baristas doodling on cups in Sharpie pens; reinstated self-serve milk and sugar stations; cut 30% of the food and drink menu; and ended its open-bathroom policy for non-paying customers. The company also plans to renovate 1,000 stores — 10% of its company-owned US locations — with chairs, couches, tables and power outlets over the next year.
Partners in coffeehouses scheduled to close were notified this week. The company is working to offer transfers to nearby locations where possible and will move quickly to help partners understand what opportunities might be available to them. For employees who cannot be immediately placed elsewhere, Starbucks is focused on partner care, including comprehensive severance packages.
Alexandria still has at least a dozen other Starbucks locations, including stores on King Street (532 King Street), North Henry Street (540 N Henry Street), Eisenhower Avenue (2459 Eisenhower Avenue), Richmond Highway (7511 Richmond Highway and 6754 Richmond Highway), Duke Street (3113 Duke Street), Jefferson Davis Highway (3825 C Richmond Highway), and inside grocery stores and shopping centers throughout the city.
The coffee chain expects to return to growth mode in fiscal 2026, with plans to open new locations as part of its longer-term strategy.
