Starbucks To Close 250 Stores This Week: What MI Customers Need To Know

Starbucks plans to close about 250 coffeehouses across North America later this week, a move that could affect Michigan customers as the coffee giant continues to reshape its store footprint.

The company has not yet released a list of the locations slated to close or said how many are in Michigan. There are hundreds of Starbucks stores across the state.

On Tuesday, Starbucks announced closures involving stores that are not delivering the financial results or customer experience the company expects.

The closures represent about 1 percent of Starbucks' more than 18,000 North American coffeehouses. The company said it expects to continue growing its store count in the region even as it closes underperforming locations.

The move comes about a year after Starbucks closed 627 stores in North America and Europe. The company is also continuing a program to renovate its coffeehouses, with about 1,500 locations expected to receive upgrades by the end of its fiscal year.

Starbucks Chief Operating Officer Mike Grams said the company has gained a clearer picture of individual store performance as the renovations have progressed.

“While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you,” Grams said in a letter to employees.

Starbucks said employees at closing locations will be transferred to other stores when possible. Workers who cannot be placed elsewhere will receive severance support.

The company expects the closures to result in about $300 million in restructuring charges, including costs associated with ending leases and employee separation benefits.

Michigan Starbucks customers have already seen closures under the company's broader restructuring. Last year, Starbucks announced plans to eliminate its pickup-only store model, with one Michigan location affected among the 90 stores affected.

AP News contributed to this report.