Why is Starbucks closing in 16 locations? Locations explored as coffee-giant cites 'safety concerns'

Starbucks is planning to shutdown 16 locations across various cities in the U.S., citing safety issues. According to the National Retail Federation, retailers are reporting incidents of organized retail crime gangs and workplace violence as major issues.

All 16 stores will be closed by the end of July. A company spokesperson told CBS MoneyWatch that the country is experiencing challenges such as “chronic homeless issues, substance abuse and social unrest," and Starbuck is “uniquely positioned,” due to its presence in various locations.

The Starbucks locations set to close by end-July are situated in Los Angeles, Seattle, Washington, D.C., and Portland, Oregon.

The company said that the closure of the 16 locations is part of a bigger plan to provide a safer, kinder and welcoming environment for their staff.

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Starbucks to transfer employees to neighboring stores

Starbucks is closing multiple stores which are unionized (Image via Getty)

In a letter to employees on July 11, Debbie Stroud and Denise Nelson, both Senior Vice Presidents of Operations in the U.S., spoke about the safety in the coffee stores:

“You’re also seeing firsthand the challenges facing our communities – personal safety, racism, lack of access to healthcare, a growing mental health crisis, rising drug use, and more. With stores in thousands of communities across the country, we know these challenges can, at times, play out within our stores too. We read every incident report you file – it’s a lot.”

Stroud and Nelson also said that after careful consideration, stores that "experienced a high volume of challenging incidents" will be closed if they are unable to operate. All Starbucks employees working in the soon-to-be closed locations will be transferred to neighboring stores.

In response to concerns about the safety of the stores and staff, the company is willing to make the requisite adjustments and changes. Starbucks, which allows anyone to use their restrooms, is thinking of closing the restrooms to the public, hence overturning a 2018 policy.

The coffee house giant is also giving its employees the flexibility to redesign and shift furniture in the store to give the workers a clearer view of the store. Other options include restroom occupany sensors and alarm systems to alert employees if anyone is in the restroom.

Other policies that the company added to make its employees feel safer in stores include active shooter training, mental health benefits, clarity around shifts and access to abortion care.

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Unionization drive at Starbucks is gaining momemtum

Starbucks CEO Howard Schultz revealed in a letter to partners that all the policy changes are part of a broader effort to revamp the company as well as improve the employee experience.

According to reports, Schultz has been interacting and gathering feedback from employees over the past several months,. He is also trying his level best to dissuade workers from joining any union, but the drive for unionization only seems to be picking up speed. According to the NLRB, more than 189 stores have voted to unionize since last year.

The NLRB confirmed that as of June 24, there are unions in 133 Starbucks stores with more than 3,400 hourly employees among them. Elections will be held in additional stores.

Two of the Seattle stores that are closing have voted to unionize, while one of the Portland stores has petitioned to hold a union vote. Last month, the company also closed a unionized store in Ithaca, New York, because of operational problems, including an overflowing grease trap.

Starbucks Workers United Seattle is looking to file unfair labor practice charges against the company. A spokesperson for the company said that "opening and closing stores is part of our business operations," and has nothing to do with the unionization drive.