Starbucks is closing two Victoria locations this weekend as part of a larger plan to improve its financial performance. The affected stores include the Cook Street Village outlet and the downtown location at Blanshard and Fort streets. Both are part of 20 Starbucks outlets serving the Victoria area.
Seattle-based Starbucks announced it will lay off 900 non-retail employees while also closing some stores across Canada and the U.S. These moves are part of a restructuring plan reportedly worth $1 billion.
Signs posted on the doors of both Victoria locations explained the decision, calling it “incredibly difficult.”
“We know this may be hard to hear — because this isn’t just any store. It’s your coffeehouse, a place woven into your daily rhythm, where memories were made and where meaningful connections with our partners grew over the years,” the notice read.
Baristas at Cook Street Village were informed on Thursday that their jobs would end Saturday. One employee, who requested anonymity, said some staff members may stay with the company, while others are considering next steps in their careers.
At the downtown location, staff were only offered the chance to apply for roles at other stores.
In an open letter, Starbucks CEO Brian Niccol explained that many stores have struggled to meet financial expectations or failed to provide the environment customers expect.
“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” Niccol said.
Niccol acknowledged the closures would affect both employees and customers, stating, “This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult.”
Niccol joined Starbucks a year ago as CEO to guide the company through a turnaround. He is known for his leadership at Chipotle, where he doubled revenue and profits during his six-year tenure, significantly boosting the stock price.
Employees have begun sharing information on social media about the locations expected to close. By Friday afternoon, a list included 495 locations across North America, with 57 in Canada and 11 in British Columbia. The two Victoria stores are included on that list.
The closures come amid a challenging period for Starbucks, as the company faces changing consumer habits and increased competition. The move to shut underperforming stores reflects a strategy to concentrate resources on locations with strong customer engagement and better financial prospects.
Despite the closures, Starbucks remains committed to its local communities. The company is helping staff affected by store shutdowns find alternative roles and offering support to ease the transition.
Customers visiting the Victoria locations this weekend can expect the stores to close permanently, while employees will either relocate to other stores or leave the company. The announcement marks a significant moment in Starbucks’ restructuring efforts, signaling a focus on long-term sustainability.
The Victoria closures are part of a broader trend as Starbucks adjusts to shifting market conditions in North America. The company has emphasized that its priority is creating coffeehouses where customers feel comfortable and partners can succeed.
As Starbucks continues its $1 billion restructuring plan, more information is expected about additional store closures and how the company plans to strengthen its presence in key markets. The Victoria store closures highlight the challenges of maintaining profitability while keeping stores aligned with customer expectations.
