Coffee giant Starbucks is shrinking its footprint in downtown San Francisco following the announcement that it plans to close seven stores in the city’s center even as it opens, reopens or renovates other locations in the city.
A company spokesperson explained that Starbucks evaluates its store portfolio each year to identify needed investments or renovations, consider alternative formats and re-evaluate its footprint. Starbucks’ regional vice president for Northern California, Jessica Borton, informed employees at the stores slated for closure in a letter sent Monday that was first reported by the San Francisco Business Times.
“There are several factors Starbucks considers when tasked with the tough decision of closing a store, but it is all part of ensuring a healthy store portfolio,” Borton wrote. “We will continue to listen to the needs of our partners to ensure they can focus on crafting beverages and creating connections in a welcoming environment.”
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Starbucks will close seven stores in the San Francisco neighborhoods of Financial District, Cathedral Hill, South of Market (SoMa) and Union Square effective October 22. Among the stores set to close include locations at the intersections of Mission and Main; Geary and Taylor (designed as a pickup-only location); 4th and Market; and Bush and Van Ness.
Borton wrote in her letter that employees at stores marked for shuttering will be offered the opportunity to transfer to nearby locations.
“Transfer opportunities are available and will be offered to each impacted partner. We remain committed to continuing to dialogue with and support our partners in ways that work best for them as individuals throughout this transition,” Borton wrote.
Despite the closures, Starbucks is investing $2.5 million for renovations at four stores including two in Union Square, one in Noe Valley and another in Outer Sunset.
Starbucks recently opened or reopened three new stores in San Francisco, including a location in Union Square along with a delivery-only location and converted a store on Market Street into a pickup-only location.