Fears for West Midlands Starbucks cafes as coffee giant Starbucks to close some of its UK stores
By Rob Smith
Copyright expressandstar
Starbucks confirmed today (Thursday) it has launched a consultation over the proposed closure of a number of company-owned UK stores, putting workers at the sites at risk.
However, it did not disclose how many stores will be affected and where these are located.
The hospitality business runs around 520 company-owned stores in the UK, as well as franchise-owned coffee shops.
It has branches in Birmingham, Merry Hill, Wolverhampton, West Browmich and Cannock.
It came as the group revealed it will reduce its portfolio of stores in North America by 1 per cent this year and will cut around 900 North American head office jobs.
It is understood more than 5,600 people work for Starbucks across the UK.The chain said it is planning to close sites where it has not been able to “create the physical environment customers” want, and where they are not sustainably profitable.The coffee chain has said it is still on track to open 80 new Starbucks sites in the UK and is committed to the country.
In a statement, Starbucks said: “As outlined in a letter shared by Brian Niccol (chairman and chief executive officer), we have conducted a review of our coffeehouse portfolio in North America and certain stores have been identified for closure where it has not been possible to create the physical environment customers and partners (employees) want, and where there isn’t a path to financial performance.
“In Europe Middle East & Africa (EMEA), we have conducted a similar review of our company-operated store portfolio with the goal of ensuring that our stores are correctly located, generating appropriate levels of foot traffic and operating in the right formats.
“While the EMEA business is on track to meet its commitment to open 80 new stores in the UK and 150 across EMEA this financial year, some stores in the UK, Switzerland and Austria will close as a result of this portfolio review.”