Starbucks Closing 250 Stores, Laying Off Employees: What To Know In VA

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

Virginia is among the top 10 states for Starbucks locations, according to the data company ScrapeHero.

Starbucks has not yet released a list of the locations slated to close or said how many are in Virginia. ScrapeHero reports that there are about 508 locations in the commonwealth, accounting for 3 percent of the company's stores.

According to WCNC Charlotte, four Virginia locations are on the chopping block:

• Charlottesville: 1001 W. Main St., Charlottesville, VA 22903
• Harrisonburg: 1306 Hillside Ave., Harrisonburg, VA 22801
• Richmond: 400 N. Robinson Road, Richmond, VA 23220
• Richmond: 11735 W. Broad St., Richmond, VA 23233

A Starbucks spokesperson told Patch that stores that are closing will have signage up this weekend.

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.

No notices have yet been published by Virginia's Department of Workforce Development and Advancement.

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

Virginia 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 two Central Virginia Starbucks locations among the 90 stores affected. Another four Northern Virginia stores were scheduled to be closed following a review that placed them among locations where the company was "unable to create the physical environment our customers and partners expect" or didn't "see a path to financial performance," CEO Brian Niccol announced.

Starbucks has not yet announced whether any of the locations identified in that earlier closure plan will be affected by this week's additional 250-store shutdown.

AP News contributed to this report.