Introduction:Starbucks’ status as the world’s largest coffee chain is facing challenges, with the recent closure of multiple stores drawing attention. In addition to selling its operations in overseas markets such as South Korea and Russia, there are also reports of numerous store closures in the United States. Are the shutdowns due to safety concerns or related to the unionization movement? This article takes an in-depth look at the real reasons behind Starbucks’ store closures and the complex factors involved.

Starbucks, the globally renowned coffee chain, is currently undergoing an unprecedented business adjustment. As the market leader in coffee retail, the brand has seen continuous reports of contraction this year, including the sale of its businesses in South Korea and Russia, and even the UK market is under careful consideration for potential exit.

The turbulence in the U.S. market is equally noteworthy. According to reports,Starbucks plans to permanently close 16 stores by the end of July, and this is just the beginning. A leaked internal meeting video from Twitter shows former Starbucks CEO Howard Schultz admitting in person that the store closures will continue to expand. “We are listening to our partners and making adjustments, and this is just the start — more store closures will follow.”

The video, exposed by employees, was recorded during an internal Starbucks meeting where Howard was directly speaking with staff. While Starbucks has confirmed the authenticity of the video, it has not disclosed the specific time, location of the recording, nor has it publicly listed the names of the stores set to close.

In the video, Howard pointed out that over the past year of employee listening sessions,personal safety has become the top concern for store employees, including threats from individuals with mental illnesses, homeless people, and various forms of crime. Although some stores remain profitable, rising safety risks in the surrounding areas have forced Starbucks to make the decision to shut them down.

Starbucks officials previously stated that this wave of closures is mainly due to “a significant number of safety threats,” which have made both customers and employees feel unsafe inside the stores, leading to the decision to close these high-risk locations.

Employees working at U.S. Starbucks locations have told the media that open restrooms, spacious and comfortable lobbies, and free water services, while enhancing customer experience, have also attracted some homeless individuals and those experiencing mental health crises, occasionally resulting in conflicts and disturbances.

Notably, among the initially announced 16 store closures, two stores in Seattle have successfully unionized, and another in Portland is expected to hold a union vote in August. This has led outsiders to speculate whether there is more to Starbucks’ current round of closures.

Some Starbucks union members have accused the company of using rising crime rates as an excuse to cover up its efforts to hinder unionization, questioning whether Starbucks closed multiple stores that had either established unions or were in the process of forming them, without notifying employees or consulting with the unions.

In response to such accusations, Starbucks stated that it is not targeting union-supporting stores but making decisions based on overall safety considerations. The company emphasized that store managers have the authority to take measures such as closing restrooms or reducing seating capacity to maintain safety, and only if those measures still fail to ensure safety will they opt to close the stores.

Currently, Starbucks continues to face market changes and internal challenges globally, and it remains to be seen whether further strategic adjustments will be made in the future. This wave of store closures is not just a business decision, but also involves multiple issues including employee safety, community impact, and labor relations.

The above content is compiled by CoffeeHunters, a coffee news website.