Starbucks Shuts Down Over a Dozen Locations in Ottawa

Starbucks has confirmed the closure of more than a dozen cafés in Ottawa as part of a significant restructuring plan aimed at reducing its North American operations by approximately one percent. This initiative, which represents an investment of $1 billion, will also result in the elimination of hundreds of jobs across the continent.

The company released details of the closures through its online store locator. Affected locations include outlets at the University of Ottawa, Carleton University, and Algonquin College. Additional closures were confirmed at several downtown addresses, including the intersections of Bank and McLeod and 99 Bank Street, as well as locations in Westboro, Elmvale Acres, and several outlets along Hunt Club Road.

According to reports from the Ottawa Citizen, staff at the café on Carling and March Road indicated that it would remain open until 16:00 on September 28, 2023, before ceasing operations. An informal tracker maintained by Starbucks employees suggested that another location at 1050 Bank Street may also be closing, although it was not confirmed through official channels.

Brian Niccol, CEO of Starbucks, stated on September 25 that the closures were the result of a thorough review of underperforming stores. While the company plans to upgrade over 1,000 surviving locations in the next year, nearly 900 non-retail jobs are being cut as well. Employees affected by the closures are being offered transfer opportunities where possible, severance packages if not, and the chance to be placed on a rehire list.

The impact of this restructuring extends beyond Ottawa, with closures reported across North America. Notably, the flagship Seattle Reserve Roastery has also shut its doors. Despite a rise in stock prices since Niccol took over in 2024, Starbucks has seen a decline in revenue as customers reconsider the cost of premium beverages. Additionally, the company is facing scrutiny over its supply chain practices. Earlier this year, International Rights Advocates filed a lawsuit in the U.S. alleging slavery-like conditions for Brazilian workers on coffee farms supplying the company. Starbucks has denied these allegations, citing its adherence to C.A.F.E. Practices sourcing standards.

As the situation develops, updates regarding the closures and additional affected locations will be provided. Starbucks continues to navigate challenges while attempting to adapt its business model to changing consumer preferences.