Starbucks is closing three stores in Philly and South Jersey
Three Starbucks locations are closing in the area this week amid a larger company shuttering of roughly 250 stores.
Starbucks is closing two Philadelphia stores and one in South Jersey among roughly 250 locations the company announced it is shuttering this week.
The company “identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” chief operating officer Mike Grams said in a statement this week.
Starbucks spokesperson Andrew Trull said the stores at 2201 South St. in Center City and 1018 N. Second St. in Northern Liberties, as well as the Willingboro store in New Jersey at 4380 Route 130, are expected to shutter “later this week.” The stores appear to be closing as of Sunday, according to the Starbucks website store locator. The company did not share whether other locations in the Philadelphia area are expected to close.
The company closed six Philadelphia locations last year.
The 250 stores closing represent about 1% of the over 18,000 Starbucks in North America, according to Grams. Of the 250 closing stores, 20 are unionized, according to the baristas’ union, Starbucks Workers United.
Starbucks has several dozen stores in Philadelphia and more in the surrounding counties.
“Starbucks leadership is failing the company, and trouble is brewing for Starbucks,” Starbucks Workers United said in a statement. The company, in response, pointed to its recent financial turnaround under company CEO Brian Niccol, who stepped into the role in 2024.
Starbucks baristas have been organizing for years, electing Starbucks Workers United to represent them at nearly 700 stores, according to the union, but they have not yet reached a first union contract with the company.
Starbucks closes some locations and opens new ones every year, Grams said, adding that is part of “managing our portfolio.”
“We remain excited about the significant long-term growth opportunity ahead in North America,” Grams said. “We are actively developing a strong pipeline of new coffeehouses and remain committed to growth in North America.”
The announcement this week is the latest round of store closures since Niccol took over as CEO. Upon last year’s closures, including six in Philly, Niccol cited nearly identical reasoning as Grams did this week for the latest changes.
Niccol has been focused on improving customer experience with a plan dubbed “Back to Starbucks.” It is paying off, he said in a statement this month, adding “we have returned to growth, delivered positive global comps and improved margins.”
The new closures support Niccol’s “Back to Starbucks” plan, Grams said.
The union this week, in light of the closure announcement, said Niccol’s plan is “nothing more than a betrayal of what workers and customers loved about the company.”
Starbucks spokesperson Trull, in response, pointed to a recent earnings call, in which Niccol said “we delivered our fourth consecutive quarter of positive global comps and our second consecutive quarter of consolidated margin growth. It’s clear proof that our Back to Starbucks plan is working.”
