The rising cost of living has been putting pressure on everyone’s budgets, from households trying to stretch a paycheck to small businesses and massive chains dealing with higher operating costs and changing customer habits.
Starbucks is now in the middle of another major round of closures across North America, and Los Angeles County is taking a significant hit. The coffee giant is shutting down plenty of locations as part of a broader plan to close approximately 250 stores, SF Gate reports.
Why is Starbucks closing so many stores?
Starbucks says the closures are part of its ongoing “Back to Starbucks” strategy, which aims to improve the performance and experience of its coffeehouses. The company said it reviewed its North American portfolio and identified locations where it either could not consistently deliver the experience it wants for customers and employees or did not see a path toward acceptable financial performance.
The 250 closures represent roughly 1% of Starbucks’ more than 18,000 North American coffeehouses. The company expects most of the closures to be completed by the end of its 2026 fiscal year and estimates about $300 million in restructuring charges, including costs associated with leases and employee separation benefits.
This isn’t Starbucks’ first major round of cuts, either. The company closed 627 stores across North America and Europe last September, according to the Associated Press.
For L.A. County, 20 locations were identified as scheduled to close after their store listings showed no operating hours beyond Saturday evening, September 26. Here are the affected locations:
- Azusa: 710 S. Azusa Ave.
- Burbank: 4207 Riverside Drive
- Calabasas: 26531 Agoura Road
- Century City: 1875 Century Park E., Watt Plaza Towers
- Chatsworth: 20790 Nordhoff St.
- Los Angeles: 555 W. 5th St.
- Los Angeles: 639 N. Broadway
- Los Angeles: 801 S. Olive St.
- Los Angeles: 2952 Beverly Glen Circle
- Los Angeles: 5757 Wilshire Blvd.
- Los Angeles: 6081 Center Drive
- North Hollywood: 5166 A Lankershim Blvd.
- Panorama City: 7902 Van Nuys Blvd.
- Pasadena: 3429 E. Foothill Blvd.
- Rowland Heights: 19759 Colima Road
- Santa Monica: 1030 Wilshire Blvd.
- Santa Monica: 2901 Main St.
- Stevenson Ranch: 25289 The Old Road
- Walnut: 22019 Valley Blvd.
- Westlake Village: 2755 Agoura Road
The closures are part of a much wider SoCal shake-up. The Los Angeles Times identified 36 locations across the region that were expected to close, while SFGATE reported that 64 California stores appeared to be affected overall.
For employees at the affected stores, Starbucks says it will offer transfers where possible, while workers who cannot be placed at another coffeehouse will receive severance support.
