Starbucks Closes Old Town Alexandria Location as Part of $1B Restructuring Plan
Starbucks is closing several locations across North America, including one in Alexandria's Old Town, as part of a $1 billion restructuring plan. The closures are part of the coffee chain's efforts to adapt to changing consumer habits and increased competition.
The Old Town Starbucks, situated at King & Union streets, will shut down permanently on Friday. This closure is one of approximately 400 underperforming stores set to close across North America, representing just over 1% of Starbucks' total locations. The company has informed partners at these coffeehouses and is assisting with transfers to nearby stores where possible.
Starbucks' restructuring plan, dubbed 'Back to Starbucks', also involves layoffs and store renovations. Despite these closures, the coffee chain expects to end its fiscal year with nearly 18,300 North American locations. Looking ahead, Starbucks aims to return to growth mode in fiscal 2026, with plans to open new locations as part of its long-term strategy.
While Alexandria will lose one Starbucks location, the city still houses at least a dozen others. The closures reflect broader challenges facing Starbucks, including increased competition and changes in consumer behavior due to the Covid-19 pandemic. Starbucks is repositioning itself as a 'third place' between home and work, focusing less on mobile orders and making stores more inviting.
