News Summary
Starbucks plans to close its famous location in Boston’s Government Center alongside nearly 20 other outlets in the area. This decision is part of a major restructuring plan aimed at addressing financial challenges and evolving market conditions. The closures will impact around 900 non-retail roles and coincide with an investment in employee separation benefits. Workers express concerns over the lack of consultation regarding the shutdowns, while the company’s CEO cites struggles with financial targets at the affected locations.
Boston will soon witness the closure of its iconic Starbucks location beneath the historic steaming kettle in Government Center, along with nearly 20 other outlets in the area. This decision is part of a broader corporate restructuring plan announced by Starbucks on Thursday, aimed at streamlining operations in response to financial performance issues and the evolving business landscape.
The company is set to embark on a significant turnaround effort, which includes shutting down hundreds of stores across North America, ultimately decreasing its operations. This restructuring plan is projected to cost around $1 billion. The closures will commence immediately, with Starbucks targeting a total of 18,300 locations in North America by the end of the fiscal year on September 28, 2023. As of June 29, Starbucks operated 18,734 locations in North America.
List of Affected Locations
The Boston area will see the following stores close:
- 63-65 Court St., Boston
- 540 Commonwealth Ave. (Kenmore Square), Boston
- 1660-1670 Soldiers Field Road, Boston
- 192 Tremont St., Boston
- 30 Rowes Wharf, Boston
- 11 West Broadway St., South Boston
- 1948 Beacon St. (Cleveland Circle), Brighton
- 850 River St., Hyde Park
- 277 Harvard St., Brookline
- 874 Commonwealth Ave, Brookline
- 1 JFK St. (Harvard Square), Cambridge
- 1662 Massachusetts Ave., Cambridge
- 11 First St., Cambridge
- 177 College Ave., Medford
- 333 Worcester St., Natick
- 474 Woodward St., (Waban) Newton
- 260 Elm St. (Davis Square), Somerville
- 68 Central St., Wellesley
- 661 Boston Post Road East, Marlborough
Impact on Employees
Workers affected by these closures will be offered severance packages and potential transfers to other nearby locations. In total, the company has confirmed plans to eliminate around 900 non-retail employee roles as part of the restructuring initiative. While information on specific closing stores has been provided, precise details on the total number of closures remain undisclosed.
Concerns have been raised by workers at Starbucks locations, who indicate that the decision to close stores was made without any consultation with staff, including baristas. Since 2021, approximately 650 company-owned Starbucks locations in the U.S. have voted to unionize, yet no contract agreements have been finalized with the company thus far.
Reactions from Labor Groups
Starbucks Workers United, a labor organization representing employees, criticized the closures and announced intentions to negotiate placements for workers affected by the shutdowns. The restructuring plan also includes an investment of $150 million in employee separation benefits, with the rest of the budget allocated toward closing costs and exiting leases.
Reasons for the Closures
Starbucks CEO Brian Niccol indicated that many of the locations slated for closure have struggled to meet financial performance targets and have not delivered the expected customer experience. The move is seen as necessary for the company to align its operations with current market conditions and improve profitability.
As Starbucks moves forward with its restructuring plan, both customers and employees are left to navigate the impact of these significant changes in a city known for its bustling coffee culture.
Deeper Dive: News & Info About This Topic
- WCVB: Starbucks Boston Locations Closing
- Wikipedia: Starbucks
- MassLive: Starbucks Closing Stores in Massachusetts
- Google Search: Starbucks closures
- Boston Globe: Starbucks Stores Closing in Boston Suburbs
- Encyclopedia Britannica: Starbucks
- CBS News: Starbucks Store Closing List in Massachusetts
- Google News: Starbucks Massachusetts
- Patch: 5 MA Starbucks Locations Closing
- Google Scholar: Starbucks closures
Author: STAFF HERE BOSTON WRITER
BOSTON STAFF WRITER The BOSTON STAFF WRITER represents the experienced team at HEREBoston.com, your go-to source for actionable local news and information in Boston, Suffolk County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Boston Marathon, Head of the Charles Regatta, and Boston Harborfest. Our coverage extends to key organizations like the Greater Boston Chamber of Commerce and Associated Industries of Massachusetts, plus leading businesses in finance, biotech, and insurance that power the local economy such as Fidelity Investments, Biogen, and Liberty Mutual Insurance. As part of the broader HERE network, we provide comprehensive, credible insights into Massachusetts's dynamic landscape.
