Three Starbucks locations in Spokane close after billion dollar restructuring plan announcement
Starbucks is closing three of its 29 locations in Spokane and its popular Ritzville coffee shop just off Interstate 90.
The local closures and many more across Washington come as company CEO Brian Niccol embarks on a $1 billion restructuring plan.
The closures began last week and will affect 369 Washington employees, according to a notice filed with Washington’s Employment Security Department. The three Spokane coffeehouses now closed include those at 2703 N. Division St., 1821 N. Hamilton St. and 9335 N. Newport Hwy. The coffee shops no longer appear on the Starbucks website or Google Maps.
Starbucks also is eliminating 900 non-retail partner roles – potentially affecting people who work in human resource, marketing, IT and finance at Starbucks. Those employees were let go on Friday.
The Ritzville location has been a spot that folks on road trips often stopped at to refill on gas and caffeine. The small town’s population is around 1,700.
“I know these decisions impact our partners and their families, and we did not make them lightly,” Niccol said. “I believe these steps are necessary to build a better, stronger, and more resilient Starbucks.”
All of the closures combined will result in a 1% decline from Starbucks coffeehouses in North America, Niccol said in a letter released on Sept. 25. Niccol noted that Starbucks needs to build “better, stronger and more resilient” coffeehouses, with the goal of delivering great atmospheres and warm spaces.
“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.
In the next year, Niccol says 1,000 Starbucks locations will be updated.
The only unionized Starbucks in Spokane is the Shadle Center Starbucks located at 2401 W. Wellesley Ave. Employees at this store voted to join Starbucks Workers United in June 2023.
Severance packages may be given to Starbucks employees who cannot be transferred to another location. Some employees may receive packages that will see them through to December.
The company will end 2025’s fiscal year with 18,300 Starbucks locations. Starbucks is not sharing a list of its closed locations.