Starbucks announced this week that approximately 250 locations will close, including one in Middle Tennessee.
In a public letter, Starbucks Chief Operating Officer Mike Grams said the coffee chain closes locations each year, and this week's closures represent about 1% of Starbucks' more than 18,000 North American coffee shops.
In 2024, former CEO Brian Niccol introduced the Back to Starbucks strategy with the aim of bringing back customer-favorite amenities, including free refills on drinks enjoyed in coffee shops, the return of the condiment bar, an improved code of conduct, and a simplified menu.
In his letter, Grams said that while most locations are thriving as they integrate the Back to Starbucks strategy, some are underperforming, "despite
the hard work and commitment of all of you," USA TODAYreported.
"We’re making this decision for a simple reason: We want every Starbucks coffeehouse to be a place customers love and partners are proud to work," Grams wrote in his letter.
Earlier this year, Starbucks announcedplans to establish a corporate office in Davidson County, investing $100 million and creating up to 2,000 jobs as part of an expansion beyond its Seattle headquarters.
Then in August, the company confirmed it would lay off more than 100 employees who declined to relocateto Nashville, fueling discussion about Tennessee's business climate, cost of living and political environment compared to Seattle. Here's what else to know.
Which Starbucks stores are closing in Tennessee?
While Starbucks did not release a specific list of stores slated to close, KGW-TV, a Portland, Oregon, television station, published a list that includes a Starbucks location in Madison at 1907 Gallatin Pike N.
The store is listed as permanently closed on Google, and attempts by The Tennessean to reach the location by phone on Sept. 28 were unsuccessful.
How many Starbucks locations are in Nashville?
Nashville remains Starbucks' largest market in Tennessee, with 33 locations operating across the city, according to data from CREHQ.
Statewide, Starbucks has 319 locations across 87 Tennessee cities, ranking Tennessee 15th nationally for the coffee chain's footprint. Knoxville and Memphis follow Nashville with 31 and 30 locations, respectively.
To view a full list of stores, visit starbucks.com.
What will happen to the employees at the closing locations?
In his letter, Grams said employees will be offered transfer opportunities to other locations. For those who are unable to transfer, severance support will be provided. The chain did not provide details on the severance package.
When are the Starbucks locations closing?
Starbucks did not provide a specific closure date for the locations. The stores will close "later this week," Grams' letter says.
Starbucks' Nashville expansion faces criticism
Most recently, a proposed $30 million state grant for Starbucks' Nashville corporate office drew scrutiny during a Sept. 9 Industrial Development Board meeting, where members questioned the company's job creation commitments, contract timeline and labor practices.
Board member Tequila Johnson said she had heard from dozens of residents, including Starbucks baristas, who raised concerns about the incentive package amid ongoing contract negotiations with unionized workers and the company's history of unfair labor practice allegations.
Starbucks' plans to create a corporate office in Nashville have become the subject of political debates in recent months, with Metro Nashville Council memberscalling on the company to negotiate fairly with workers and Tennessee lawmakers pointing to the company's Southern expansion as a political talking points.
Meanwhile, an incentive package for Starbucks funded by Nashville is still not off the table.
Nashville Mayor Freddie O'Connell told The Tennessean in May that his office was weighing the possibility of offering incentives to the company but declined to provide further details about what that could look like.
Any potential deal would mark a notable shift for O'Connell, who has so far avoided cash-per-job incentives as Nashville weighs how to attract high-paying jobs without squeezing local businesses.
Furthermore, such a deal would need approval from Metro Council.
James Weaver, a lobbyist who spoke on behalf of Starbucks at the board meeting, said representatives of the company have met with around 32 of Nashville's 40 council members to discuss the establishment of the new office and answer any questions they may have.
Contributing: USA TODAY, Molly Davis
Diana Leyva covers trending news and service journalism for The Tennessean. Contact her at Dleyva@gannett.com.
This article originally appeared on Nashville Tennessean: Starbucks closing 250 stores, including one in Middle Tennessee
