This fall, New Yorkers discovered unusually quiet corners of familiar streets as dozens of Starbucks coffee shops abruptly closed across the five boroughs. The sudden closures have sparked attention from the local labor protection office, which has already collected over $30 million for Starbucks violation of fair labor laws.
Why the closures?
As part of a sweeping Back to Starbucks restructuring under CEO Brian Niccol, the Seattle-based coffee giant announced it would shutter roughly 1% of its North American stores by the end of fiscal 2025, citing the need to focus resources on locations where it can “create the physical environment our customers and partners expect.”
In New York City alone, at least 34 Starbucks locations spanning Manhattan, Queens, and Brooklyn were identified for closure this fall, including high-traffic corners along West 34th Street, University Place, and Atlantic Avenue.
Impact on communities
For many patrons and workers, these are more than corporate decisions — they mark the end of neighborhood fixtures. On the Upper West Side and in Greenpoint, locals likened the sudden shutdowns to losing a community hub, expressing disbelief and “mourning” on social media.
Baristas who once knew regulars by name have shared their own heartbreak, describing abrupt layoffs and uncertain futures amid a tougher job market. Some workers reported that despite assurances of transfer opportunities, a number were left without placement or support, amplifying their frustrations.
One laid-off barista said on Reddit that the email they received about the layoff seemed “impersonal” and expressed the level of difficulty in finding another job in New York “in a matter of weeks”.
Legal issues
The abrupt nature of the closures also drew ire from commercial landlords and city officials. In late September, New York City regulators warned Starbucks that its rapid shutdowns could violate local labor protections requiring laid-off employees be offered work at nearby stores.
It turns out Starbucks has already been in hot water regarding fair labor acts. Starbucks is paying $39 million in a settlement with the New York City Department of Consumer and Worker Protection (DCWP). DCWP alleges that Starbucks violated the Fair Workweek Law, and will be paid to impacted employees from 2021-2024.
Moving forward
While Starbucks plans to reinvest in stronger locations and renovate more than 1,000 stores next year, many New Yorkers are left wondering what the shrinking footprint means for community gathering spaces. It also comes as a reminder that even the biggest chains aren’t immune to sudden layoffs – and sometimes don’t abide by labor laws.
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment